Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Charter Communications (NASDAQ:CHTR) alongside its primary competitors in the Media industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to investors and shed light on company's performance within the industry.
Charter Communications Background Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 56 million U.S. homes and businesses, around 40% of the country. Across this footprint, Charter serves 30 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest U.S. cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (long-term local rights to Los Angeles Lakers games), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| Charter Communications Inc | 13.12 | 5.36 | 1.13 | 11.64% | $5.24 | $5.29 | 0.25% |
| Comcast Corp | 11.75 | 2.06 | 1.47 | 4.85% | $10.02 | $21.46 | 0.89% |
| Cable One Inc | 38.43 | 1.69 | 1.96 | 2.21% | $0.19 | $0.31 | -1.03% |
| DISH Network Corp | 2.06 | 0.11 | 0.16 | -0.76% | $0.12 | $0.9 | -9.55% |
| Average | 17.41 | 1.29 | 1.2 | 2.1% | $3.44 | $7.56 | -3.23% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } By thoroughly analyzing Charter Communications, we can discern the following trends:
- With a Price to Earnings ratio of 13.12, which is 0.75x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
- With a Price to Book ratio of 5.36, which is 4.16x the industry average, Charter Communications might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
- With a relatively low Price to Sales ratio of 1.13, which is 0.94x the industry average, the stock might be considered undervalued based on sales performance.
- With a Return on Equity (ROE) of 11.64% that is 9.54% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
- The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $5.24 Billion, which is 1.52x above the industry average, indicating stronger profitability and robust cash flow generation.
- The gross profit of $5.29 Billion is 0.7x below that of its industry, suggesting potential lower revenue after accounting for production costs.
- The company is experiencing remarkable revenue growth, with a rate of 0.25%, outperforming the industry average of -3.23%.
The debt-to-equity (D/E) ratio is a financial metric that helps determine the level of financial risk associated with a company's capital structure.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In light of the Debt-to-Equity ratio, a comparison between Charter Communications and its top 4 peers reveals the following information:
- Charter Communications has a relatively higher debt-to-equity ratio of 8.84 compared to its top 4 peers.
- This could indicate a higher financial risk as the company is more reliant on borrowed funds, and investors may perceive it as a potential concern.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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