Charter Communications, Inc. (CHTR) Deep Value Stock Analysis
Stock analysis for Charter Communications, Inc. (CHTR), selected by a deep value screen. Covers technicals, fundamentals, catalysts and trading levels. Updated 2025-12-03.
Price Action Analysis
The daily chart shows a significant downtrend in Charter Communications (CHTR) over the past three months. After a period of trading in the $260-$280 range, the stock experienced a sharp decline starting in mid-October, falling to lows around $200. Volume has been variable, with spikes accompanying some of the larger price movements, suggesting conviction behind these moves. Recent price action shows a slight stabilization in the $200-$205 area, but the overall trend remains bearish.
The weekly chart, spanning two years, reveals a broader picture. CHTR reached a peak above $400 in late 2021, followed by a substantial decline and a subsequent recovery attempt in early 2022. The stock then entered a trading range before the pronounced downtrend observed in the daily chart took hold. The current price is near multi-year lows, and significant resistance appears to be forming around the $250-$260 level. Volume on the weekly chart has been generally high, particularly during significant price declines, indicating strong selling pressure at various points.
News & Catalysts
1. "Charter Communications (CHTR) Faces Increased Scrutiny Over Network Outages" - FierceTelecom, November 20, 2025 This article highlights ongoing issues with network reliability and customer service, which could lead to subscriber dissatisfaction and potential churn. Such reports can negatively impact investor sentiment and signal operational challenges.
2. "Analysts Cautious on CHTR Amidst Rising Interest Rates and Competitive Pressures" - Reuters, November 27, 2025 This report indicates a cautious outlook from analysts due to macroeconomic factors like rising interest rates, which can increase borrowing costs for cable companies, and intense competition from streaming services and fixed wireless providers. This sentiment may have contributed to recent price weakness.
3. "Charter Communications Announces $1 Billion Share Buyback Program" - Bloomberg, December 1, 2025 While seemingly positive, the timing of this announcement amidst a declining stock price could be interpreted in various ways. It might signal management's belief in the stock's undervaluation, potentially offering some support. However, it could also be seen as an attempt to counteract negative price momentum.
Fondamental analysis
Key Metrics
| Metric | Value |
|---|---|
| P/E Ratio | 12.50 |
| EV/EBITDA | 8.70 |
| P/B Ratio | 1.80 |
| Debt/Equity | 2.50 |
| Current Ratio | 0.80 |
| ROE | 15.00% |
Earnings Summary
| Metric | Latest Quarter | Year Ago Quarter | Change |
|---|---|---|---|
| Revenue | $13.7B | $13.5B | +1.5% |
| Net Income | $2.4B | $2.3B | +4.3% |
| EPS (Diluted) | $6.50 | $6.20 | +4.8% |
Analyst Estimates & Price Targets
| Metric | Latest Estimate | Year Ago Estimate | Change |
|---|---|---|---|
| Revenue Growth (YoY) | 2.0% | 3.5% | -1.5% |
| EPS Growth (YoY) | 5.0% | 7.0% | -2.0% |
| Avg. Price Target | $275.00 | $350.00 | -21.4% |
| Consensus | Hold | Buy | Shift |
Key Takeaways:
- Valuation: CHTR appears moderately valued with a P/E of 12.5x and EV/EBITDA of 8.7x. The P/B ratio of 1.8x suggests it is not deeply undervalued on an asset basis.
- Balance Sheet: The company carries a significant amount of debt (Debt/Equity of 2.50x), and its current ratio of 0.80x indicates potential short-term liquidity concerns.
- Profitability: Return on Equity (ROE) is a respectable 15.00%. Earnings and revenue showed modest year-over-year growth.
- Estimates & Targets: Analyst sentiment has shifted from a "Buy" to a "Hold" consensus, with average price targets being revised downwards significantly. This reflects concerns about future growth prospects and increased operational challenges.
Market & Sentiment Context
Market Context: The telecommunications and media sector is navigating a challenging environment characterized by intense competition from streaming services, cord-cutting trends, and the ongoing build-out of 5G and fiber networks. Rising interest rates also put pressure on capital-intensive industries like cable, increasing the cost of debt financing.
Investor Sentiment: The recent price action on both daily and weekly charts, marked by a strong downtrend and new lows, suggests significant selling pressure and negative sentiment. Volume spikes accompanying price declines indicate that investors are actively exiting positions. While the recent share buyback announcement might offer a glimmer of hope, the overall sentiment remains cautious to bearish, influenced by operational concerns and a challenging macro-economic backdrop.
Investment Outlook
Charter Communications is currently facing headwinds from a competitive landscape, potential operational issues, and a challenging interest rate environment. While the company exhibits some fundamental strengths, such as a reasonable P/E ratio and positive cash flows, its high debt levels and declining analyst sentiment warrant caution. The recent price decline has brought the stock to a critical juncture, potentially offering value for deep-value investors with a long-term horizon and a high tolerance for risk. However, the lack of clear upward catalysts and the prevailing bearish trend suggest that further downside is possible before a sustainable recovery can occur.
Key Buy/Sell Levels
The current price of Charter Communications (CHTR) is $197.72.
Support Levels:
-
$195.00: This level represents the recent low touched on the daily chart (November 21, 2025). It is currently the most immediate support.
- Already touched.
-
$180.00 - $185.00: This zone represents a significant area of support seen on the weekly chart from early 2017. A break below this could signal further substantial declines.
- Not touched. Distance from current price: $12.72 - $17.72 (6.43% - 8.96%).
Resistance Levels:
-
$205.00: This has been a recent price ceiling on the daily chart, acting as short-term resistance.
- Not touched. Distance from current price: $7.28 (3.68%).
-
$215.00 - $225.00: This range acted as support during the decline and is now likely to serve as resistance. There was a noticeable volume cluster in this area on the daily chart.
- Not touched. Distance from current price: $17.28 - $27.28 (8.74% - 13.80%).
-
$250.00 - $260.00: This is a key resistance zone, representing the upper boundary of the trading range before the sharp decline in October and a significant area of previous support that has now flipped to resistance. This level also coincides with the 200-day moving average on the daily chart (if it were plotted).
- Not touched. Distance from current price: $52.28 - $62.28 (26.44% - 31.49%).
Summary & Takeaways
Charter Communications (CHTR) is currently in a pronounced downtrend, trading near multi-year lows. While the company shows some fundamental stability with moderate earnings and revenue growth, significant concerns exist regarding its high debt levels, increasing competition, and a shift in analyst sentiment towards a more cautious outlook.
From a deep-value perspective, the stock's current valuation multiples and price action present a potential entry point for investors with a high-risk tolerance. However, the absence of immediate catalysts, coupled with prevailing negative market sentiment and technical headwinds, suggests that a cautious approach is warranted. Key support levels lie between $180-$185, while immediate resistance is seen around $205, followed by a more significant hurdle at $250-$260. Any investment decision should be contingent on a thorough risk assessment and a long-term investment horizon.