Charter Communications Inc

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CHTR : NASDAQ : Services
$348.08 -1.99 | -0.57%
Today's Range: 345.2501 - 350.43
Avg. Daily Volume: 1546400.0
07/24/17 - 4:00 PM ET

Financial Analysis


CHARTER COMMUNICATIONS INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. CHARTER COMMUNICATIONS INC has very weak liquidity. Currently, the Quick Ratio is 0.44 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 18,236.98% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)10164.02530.0
EBITDA ($mil)3636.0880.0
EBIT ($mil)1086.0341.0
Net Income ($mil)155.0-188.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2920.01278.0
Total Assets ($mil)149444.040524.0
Total Debt ($mil)62844.037124.0
Equity ($mil)39720.0-219.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin35.7734.78
EBITDA Margin35.7734.78
Operating Margin10.6813.48
Sales Turnover0.250.24
Return on Assets2.58-0.93
Return on Equity9.730.0
Debt Q1 FY17 Q1 FY16
Current Ratio0.490.84
Debt/Capital0.611.01
Interest Expense713.0454.0
Interest Coverage1.520.75


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)267.54101.69
Div / share0.00.0
EPS0.57-1.86
Book value / share148.46-2.15
Institutional Own % n/a n/a
Avg Daily Volume1530062.01372947.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.97 for the Media industry and a discount compared to the S&P 500 average of 24.66. To use another comparison, its price-to-book ratio of 2.33 indicates a discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 3.87. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, CHARTER COMMUNICATIONS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHTR 19.08 Peers 20.97   CHTR 9.50 Peers 11.99

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

CHTR is trading at a valuation on par with its peers.

 

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CHTR 44.47 Peers 27.44   CHTR NM Peers 2.17

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CHTR is trading at a significant premium to its peers.

 

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.

CHTR's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHTR 2.33 Peers 3.87   CHTR 584.20 Peers 94.15

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CHTR is trading at a significant discount 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHTR 2.52 Peers 18.35   CHTR 269.25 Peers 38.50

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CHTR has a sales growth rate that significantly exceeds its peers.

 

 

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