CHTR AI Stock Analysis – Buy, Hold, or Avoid?
Charter Communications, Inc. (CHTR)
Charter Communications (CHTR) is fundamentally resilient with strong margins and cash flow, but faces stagnating growth, high leverage, and mixed sentiment, resulting in a fairly valued stock with a neutral technical setup. While the low P/E and robust cash generation provide downside support, significant upside is limited without renewed growth or a major catalyst. Investors should expect stability rather than aggressive appreciation, with risk management essential due to leverage and competitive pressures.
Fundamentals
Charter Communications (CHTR) maintains a solid financial foundation with stable, high-margin business fundamentals despite facing muted top-line growth. The company has demonstrated consistent efficiency in generating earnings and strong EBITDA levels, though revenue growth has recently decelerated slightly. The low P/E and current valuation suggest the market anticipates ongoing headwinds or slow growth.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
-2.33% YoY
Q4 2025
Net Income
-9.14% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 13.6B | 13.7B | 13.8B | 13.7B | 13.9B | 13.8B | 13.7B | 13.7B |
| Revenue Growth YoY | -2.33% | -0.89% | +0.59% | +0.41% | +1.57% | +1.55% | +0.19% | +0.19% |
| Net Income | 1.3B | 1.1B | 1.3B | 1.2B | 1.5B | 1.3B | 1.2B | 1.1B |
| Net Income Growth YoY | -9.14% | -11.17% | +5.69% | +10.04% | +38.56% | +1.99% | +0.65% | +8.33% |
| EPS | $10.47 | $8.50 | $9.41 | $8.59 | $10.32 | $8.99 | $8.59 | $7.65 |
| EPS Growth YoY | +1.45% | -5.45% | +9.55% | +12.29% | +42.74% | +6.77% | +5.40% | +13.50% |
Profitability Metrics
Technical Analysis
Charter Communications (CHTR) is currently in a mixed technical state with neutral momentum and indicators suggesting consolidation after a recent downtrend. Key support levels around $182-$184 and resistance near $244-$256 define the current trading range, while the stock struggles below its 200-day moving average, signaling caution. MACD and RSI readings imply momentum is neutral to slightly bearish, with no clear breakout confirmed yet.
No extreme reading
Mixed signals
Strong trend active
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Charter Communications (CHTR) maintains a solid financial foundation with stable, high-margin business fundamentals despite facing muted top-line growth. The company has demonstrated consistent efficiency in generating earnings and strong EBITDA levels, though revenue growth has recently decelerated slightly. The low P/E and current valuation suggest the market anticipates ongoing headwinds or slow growth.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$10.34
Estimated
$9.78
Surprise
+$0.56
Surprise %
+5.73%
Revenue
Actual
$13.6B
Estimated
$13.73B
Surprise
-$131.01M
Surprise %
-0.95%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $10.34 | $8.34 | $9.18 | $8.42 | $10.10 | $8.82 | $8.49 | $7.55 |
| EPS (Estimated) | $9.78 | $9.23 | $9.58 | $8.43 | $9.19 | $8.62 | $7.98 | $7.92 |
| EPS Surprise | +$0.56 | -$0.89 | -$0.40 | -$0.01 | +$0.91 | +$0.20 | +$0.51 | -$0.37 |
| % Diff | +5.7% | -9.6% | -4.2% | -0.1% | +9.9% | +2.3% | +6.4% | -4.7% |
| Revenue | ||||||||
| Revenue (Actual) | $13.6B | $13.67B | $13.77B | $13.74B | $13.93B | $13.8B | $13.69B | $13.68B |
| Revenue (Estimated) | $13.73B | $13.74B | $13.77B | $13.67B | $13.88B | $13.66B | $13.59B | $13.75B |
| Revenue Surprise | -$131.01M | -$71.7M | +$645.5K | +$64.7M | +$46.8M | +$136.33M | +$92.56M | -$67.15M |
| % Diff | -1.0% | -0.5% | +0.0% | +0.5% | +0.3% | +1.0% | +0.7% | -0.5% |
Valuation
CHTR currently trades at notably low valuation multiples relative to industry averages, with its P/E ratio significantly compressed and trading below historical levels. Although the company shows modest revenue and earnings declines recently, its solid margins and strong returns on equity underpin its financial stability. Analyst consensus leans toward a cautious hold with mixed price targets reflecting uncertainty about growth prospects and high leverage.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 4.98 | 8.09 | 10.86 | 10.72 | 8.36 | 9.01 | 8.62 | 9.28 |
| Price to Sales | 1.95 | 2.69 | 4.10 | 3.80 | 3.52 | 3.34 | 3.10 | 3.00 |
| Price to Book | 1.65 | 2.40 | 3.49 | 3.21 | 3.15 | 3.27 | 3.29 | 3.46 |
| Enterprise Value to EBITDA | 22.71 | 25.58 | 28.45 | 27.85 | 26.30 | 26.56 | 26.06 | 26.45 |
| Enterprise Value to Revenue | 9.06 | 9.66 | 11.05 | 10.70 | 10.36 | 10.27 | 10.19 | 10.12 |
Sentiment & Analyst Ratings
Charter Communications (CHTR) exhibits a mixed overall sentiment, with analysts largely issuing hold recommendations and a wide range of price targets reflecting uncertainty about near-term performance. Recent news includes leadership changes and growth initiatives balanced against disappointing Q4 earnings and revenue misses, contributing to cautious investor mood and subdued technical indicators.
Analyst Recommendations
Risk Assessment
Charter Communications faces a high financial leverage challenge with a significant debt burden and liquidity concerns, compounded by ongoing subscriber losses driven by intense industry competition. Although the company invests heavily in network upgrades, its ability to sustain cash flow for debt servicing remains a critical risk factor, making the financial health fragile in the near term. Regulatory uncertainties and market competition further elevate the investment risk despite a stable core business model.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 0.39 | 0.37 | 0.33 | 0.36 | 0.31 | 0.34 | 0.39 | 0.40 |
| Quick Ratio | 0.39 | 0.37 | 0.33 | 0.36 | 0.31 | 0.34 | 0.39 | 0.40 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 6.05 | 6.24 | 5.94 | 5.88 | 6.14 | 6.83 | 7.58 | 8.25 |
| Debt-to-Assets | 0.63 | 0.63 | 0.64 | 0.63 | 0.64 | 0.64 | 0.66 | 0.66 |
Liquidity Assessment
Current Ratio: 0.39(Weak)
Quick Ratio: 0.39(Weak)
The company has relatively weak liquidity and may face challenges meeting short-term obligations.
Solvency Assessment
Debt-to-Equity: 6.05(High)
Debt-to-Assets: 0.63(High)
The company has relatively high debt levels, which may increase financial risk in economic downturns.
Frequently Asked Questions about CHTR
AI Answers: Common Questions About CHTR
Get AI-powered answers to the questions investors ask most about Charter Communications, Inc.
CHTR trades at a low P/E of 6.4 and is near the lower end of its 52-week range ($180.38-$437.06), but muted growth, high leverage, and mixed sentiment mean it's not a clear buy. Value investors may appreciate the discount, but upside is limited without a growth catalyst.
Unless your thesis has changed or you expect further deterioration, there is no urgent reason to sell; technicals are consolidating and fundamentals remain stable. However, if you are risk-averse or concerned about leverage and liquidity, reducing exposure may be prudent.
The biggest risks are high leverage (debt-to-equity over 6, 63% of assets financed by debt), liquidity constraints (current and quick ratios below 1), and ongoing subscriber losses amid intense competition. These factors could pressure cash flow and increase refinancing risk.
Key technical resistance is at $244-$256, with support at $182-$184; analysts' price targets range widely from $185 to $525, reflecting uncertainty. Near-term, the stock is likely to trade within this $182-$256 range absent a major catalyst.
CHTR is fairly valued to undervalued: P/E is 6.4 (well below sector), price-to-sales is conservative, and EV/EBITDA is low annually. The discount reflects high leverage and flat growth, but strong cash flow provides a valuation floor.
Fundamentally, CHTR is strong on margins (EBITDA ~39%, gross margin >46%) and cash flow, with resilient EPS growth via cost control. However, revenue is flat to slightly declining, and the balance sheet is burdened by high debt and low liquidity.
Technically, the stock is consolidating below its 200-day MA with a death cross, RSI is neutral at 54, and no breakout above $244 resistance has occurred. Support is strong at $182-$184, but momentum is lacking for a directional move.
Key catalysts include upcoming earnings (potential for surprise on cost control or subscriber trends), integration of the Cox acquisition, new commercial/government contracts, and any reversal in subscriber losses or regulatory developments.
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