Charter Communications Inc

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CHTR : NASDAQ : Services
$234.87 | %
Today's Range: 234.77 - 238.89
Avg. Daily Volume: 3,054,400
07/29/16 - 4:00 PM ET

Financial Analysis


CHARTER COMMUNICATIONS INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. CHARTER COMMUNICATIONS INC has weak liquidity. Currently, the Quick Ratio is 0.80 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 384.41% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)2530.02362.0
EBITDA ($mil)880.0802.0
EBIT ($mil)341.0288.0
Net Income ($mil)-188.0-81.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1278.07132.0
Total Assets ($mil)40524.024410.0
Total Debt ($mil)37124.020964.0
Equity ($mil)-219.077.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin34.7833.95
EBITDA Margin34.7833.95
Operating Margin13.4812.19
Sales Turnover0.240.38
Return on Assets-0.93-0.92
Return on Equity0.0-294.8
Debt Q1 FY16 Q1 FY15
Current Ratio0.840.88
Debt/Capital1.011.0
Interest Expense454.0289.0
Interest Coverage0.751.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)101.69101.29
Div / share0.00.0
EPS-1.86-0.81
Book value / share-2.150.76
Institutional Own % n/a n/a
Avg Daily Volume3395280.02102248.0

Valuation


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. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHTR NM Peers 23.01   CHTR 10.85 Peers 19.72

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CHTR 67.55 Peers 80.89   CHTR NA Peers 1.36

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHTR NM Peers 3.71   CHTR -62.50 Peers -8.91

Neutral. 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's P/B is negative making this valuation measure meaningless.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CHTR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHTR 2.46 Peers 3.76   CHTR 7.05 Peers 42.30

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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