CHTR - Embedded Expectations Analysis - 2018 12 12
Charter Communications (CHTR:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 21.2x Uniform P/E. At these levels, the market has somewhat muted expectations for the firm, and management may be concerned about their growth, ability to increase rates, cost to service metrics, and SMG businessSpecifically, management may be concerned about their mobile investments, and may lack confidence in their ability to maintain growth in their residential internet customer base. They may also lack confidence in their ability to sustain Q3 growth in total SMB and enterprise categories, and may be concerned about their ability to effectively increase rates without damaging relationships. Moreover, they may lack confidence in their ability to significantly reduce their cost to serve metric, and to sustain early productivity benefits from their ongoing in-sourcing investments. Additionally, they may be concerned about the impact that repricing may have on SMB revenue growth in FY 2019, and about their rate of SMB growth going forward. Also, they may have concerns about the value proposition of mobile services offered to both new and existing Spectrum Internet customers, and their ability to continue scaling their salesforce across key existing sales channels
Charter Communications is a holding company. Through its subsidiaries, the company is a cable operator and a broadband communications company providing video, Internet and voice services. The company also provides its mobile service to residential customers. In addition, the company sells video and online advertising inventory to local, regional and national advertising customers and communications and managed solutions to enterprise customers. The company also owns and operates regional sports networks and local sports, news and community channels. The company owns and operates a two-way telecommunications network which passes various households and small and medium businesses across United States.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.