Charter Communications Inc

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CHTR : NASDAQ : Services
$366.14 -2.0 | -0.55%
Today's Range: 360.43 - 369.84
Avg. Daily Volume: 1641600.0
09/19/17 - 12:04 PM ET

Financial Analysis


CHARTER COMMUNICATIONS INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. CHARTER COMMUNICATIONS INC has very weak liquidity. Currently, the Quick Ratio is 0.27 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 8.97% 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 FY17 Q2 FY16
Net Sales ($mil)10357.06161.0
EBITDA ($mil)3825.02182.0
EBIT ($mil)1230.0746.0
Net Income ($mil)139.03067.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)694.0555.0
Total Assets ($mil)146960.0149195.0
Total Debt ($mil)63248.062203.0
Equity ($mil)36628.040240.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin36.9335.42
EBITDA Margin36.9335.41
Operating Margin11.8812.11
Sales Turnover0.280.09
Return on Assets0.631.88
Return on Equity2.556.98
Debt Q2 FY17 Q2 FY16
Current Ratio0.320.26
Debt/Capital0.630.61
Interest Expense749.0593.0
Interest Coverage1.641.26


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)257.88270.93
Div / share0.00.0
EPS0.5215.17
Book value / share142.03148.53
Institutional Own % n/a n/a
Avg Daily Volume1651091.01450339.0

Valuation


BUY. CHARTER COMMUNICATIONS INC's P/E ratio indicates a significant premium compared to an average of 50.54 for the Media industry and a significant premium compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 2.65 indicates a discount versus the S&P 500 average of 3.10 and a discount versus the industry average of 3.63. The price-to-sales ratio is 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 108.99 Peers 50.54   CHTR 8.37 Peers 10.66

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

CHTR is trading at a significant premium to 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 52.48 Peers 33.09   CHTR NM Peers 4.14

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 2.65 Peers 3.63   CHTR -72.71 Peers 31.06

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.

 

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 2.37 Peers 21.81   CHTR 199.07 Peers 20.81

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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