Charter Communications, Inc. ranks near the peer group median, with strong valuation offset by weak stability. The market setup has weakened, with clear trend damage and relative performance under pressure. Price action is lagging the structural profile — current market behavior is not yet confirming the structural position.
Peer-relative scores, weakest to strongest
Charter Communications provides cable television, broadband internet, and mobile telecommunications services across the United States.
The market prices Charter Communications as a cyclically challenged operator whose margin and efficiency issues force a valuation discount versus more stable competitors. With ROIC at just 3.2% (well below peer median in FY25) and operating margin falling to 15.7%—down 2.5 percentage points year-on-year in Q1 2026—the market penalizes Charter’s unpredictable cash flows, reflecting rising costs and declining capital returns in its valuation. Within the US telecom sector, the market assigns Charter a steeper discount due to its perceived vulnerability to intensified broadband competition and the burden of heavy network technology investments, which amplifies its valuation gap to peers. The market applies no premium here; instead, Charter trades well below peer levels as investors require a risk discount for ongoing business model uncertainties. Only a sustained stabilization of margins and capital returns over multiple quarters, or clear success from network investments, would break the current valuation framing.
Break down CHTR's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.