CHTR - Embedded Expectations Analysis - 2019 10 04
Charter Communications (CHTR:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 34.9x Uniform P/E. At these levels, the market has bullish expectations for the firm; however, management may be concerned about their product development, ability to retain customers, and ongoing pricing pressures.Specifically, management may be downplaying their expectations for required investments related to growth in data throughput, and they may lack confidence in their ability to develop innovative products. Furthermore, they may lack confidence in their ability to sustain new customer growth and reduce selling friction, and they may be concerned about their network performance. Additionally, they may lack confidence in their ability to expand their network throughput and to continue growing their proportion of WiFi traffic. Moreover, they may lack confidence in their ability to expand Spectrum Mobile services to small and medium business customers, and they may lack confidence in their ability to develop their hybrid fiber coax wireline network. Finally, they may be concerned about the current pricing environment in their enterprise group, and they may be concerned about ongoing pricing pressures.
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.
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