CHARTER COMMUNICATIONS INC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. CHARTER COMMUNICATIONS INC has very weak liquidity. Currently, the Quick Ratio is 0.16 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 95.08% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||2259.0||1972.0|
|Net Income ($mil)||-45.0||-96.0|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||9.0||44.0|
|Total Assets ($mil)||17369.0||15589.0|
|Total Debt ($mil)||14019.0||12812.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||34.53||34.33|
|Return on Assets||-0.65||-1.69|
|Return on Equity||-94.95||-434.42|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||108.65||101.44|
|Div / share||0.0||0.0|
|Book value / share||1.1||0.6|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||902099.0||1198579.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 145.98 indicates a significant premium versus the S&P 500 average of 2.72 and a significant premium versus the industry average of 6.09. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, CHARTER COMMUNICATIONS INC proves to trade at a premium to investment alternatives within the industry.
|CHTR NM||Peers 23.35||CHTR 7.49||Peers 34.10|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
CHTR's P/E is negative making this valuation measure meaningless.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
CHTR is trading at a significant discount to its peers.
|CHTR 66.73||Peers 27.52||CHTR NA||Peers 1.31|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
CHTR's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|CHTR 145.98||Peers 6.09||CHTR 58.65||Peers -2.70|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CHTR is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
CHTR is expected to have an earnings growth rate that significantly exceeds its peers.
|CHTR 1.99||Peers 2.80||CHTR 13.60||Peers 20.69|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CHTR is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
CHTR significantly trails its peers on the basis of sales growth
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