Charter Communications Inc

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CHTR : NASDAQ : Services
$279.67 up 3.4 | 1.2%
Today's Range: 275.11 - 279.5995
Avg. Daily Volume: 1987600.0
12/07/16 - 12:26 PM ET

Financial Analysis


CHARTER COMMUNICATIONS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. CHARTER COMMUNICATIONS INC has very weak liquidity. Currently, the Quick Ratio is 0.28 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 67,028.33% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)10037.02450.0
EBITDA ($mil)3587.0842.0
EBIT ($mil)1150.0304.0
Net Income ($mil)189.054.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1165.00.0
Total Assets ($mil)148897.036873.0
Total Debt ($mil)61996.033281.0
Equity ($mil)40277.060.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin35.7434.37
EBITDA Margin35.7334.36
Operating Margin11.4612.41
Sales Turnover0.140.26
Return on Assets1.97-0.53
Return on Equity7.31-328.33
Debt Q3 FY16 Q3 FY15
Current Ratio0.320.22
Debt/Capital0.611.0
Interest Expense724.0353.0
Interest Coverage1.590.86


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)270.67101.49
Div / share0.00.0
EPS0.690.53
Book value / share148.810.59
Institutional Own % n/a n/a
Avg Daily Volume2648047.02113414.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 30.03 for the Media industry and a discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 1.78 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 3.41. The price-to-sales ratio is well 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 20.75 Peers 30.03   CHTR 11.17 Peers 11.12

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CHTR is trading at a significant discount to its peers.

 

Average. 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 valuation on par 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 45.85 Peers 24.14   CHTR NM Peers 1.50

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 1.78 Peers 3.41   CHTR 750.06 Peers 48.04

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 3.38 Peers 5.93   CHTR 121.20 Peers 15.67

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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