CHTR - Embedded Expectations Analysis - 2021 03 12
Charter Communications, Inc. (CHTR:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 23.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may have concerns about customer churn levels, their broadband infrastructure investments, and their DOCSIS 3.1 technologySpecifically, management may lack confidence in their ability to strengthen their customer relationships, restore normal customer churn levels among new customers, and successfully deploy their radio access networks. Furthermore, they may be exaggerating the performance of their broadband infrastructure investments, the potential of their DOCSIS 3.1 technology, and their medium and long-term growth prospects. Management may also lack confidence in their ability to further expand their advanced in-home Wi-Fi service footprint and improve returns leveraging their rural digital opportunity fund (RDOF) and citizens broadband radio service (CBRS) projects
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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