Charter Communications is undervalued at 489.56 per share with modest projections ahead.
On a scale of 0 to 100, Charter Communications holds a
performance score of 5. The firm shows a Beta (market volatility) of 1.3493, which signifies a somewhat significant risk relative to the market. Let's try to break down what Charter's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Charter Communications will likely underperform. Although it is important to respect
Charter Communications historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy in foreseeing
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Charter Communications technical indicators, you can presently evaluate if the expected return of 0.23% will be sustainable into the future. Please makes use of Charter Communications
coefficient of variation,
semi variance,
price action indicator, as well as the
relationship between the
treynor ratio and
daily balance of power to make a quick decision on whether Charter Communications
price patterns will revert.
The performance of Charter Communications in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Charter Communications'
stock prices. When investing in Charter Communications, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Charter Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Charter Communications carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is Charter Communications's Liquidity
Charter Communications
financial leverage refers to using borrowed capital as a funding source to finance Charter Communications ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Charter Communications financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Charter Communications' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Charter Communications' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Charter Communications's total debt and its cash.
What do experts say about Charter?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusDetailed Perspective On Charter Communications
Charter Communications holds a total of one hundred fifty-five million six hundred seventy-two thousand
outstanding shares. Over half of Charter Communications outstanding shares are owned by
other corporate entities. These other corporate entities are typically referred to corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these
institutions are subject to different rules and regulation than regular investors in Charter Communications. Please watch out for any change in the
institutional holdings of Charter Communications as this could mean something significant has changed or about to change at the company. Also note that nearly seven million seven hundred eighty-three thousand six hundred invesors are currently shorting Charter Communications expressing very little confidence in its
future performance.
| 2020 | 2021 | 2022 | 2023 (projected) |
Interest Expense | 3.85 B | 4.04 B | 4.64 B | 3.8 B | Gross Profit | 48.1 B | 51.68 B | 59.43 B | 47.15 B |
Ownership Breakdown
| Insiders36.32% | Institutions69.0% |
| Retail Investors | -5.32 |
| Insiders | 36.32 |
| Institutions | 69.0 |
Charter is expecting lower volatility in February
The skewness is down to -2.62 as of today. Charter Communications shows above-average downside volatility for the selected time horizon. We advise investors to inspect Charter Communications further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Charter Communications future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Charter Communications' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Charter Communications' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Bottom Line
While some companies within the telecom services industry are still a little expensive, even after the recent corrections, Charter Communications may offer a potential longer-term growth to retail investors. On the whole, as of the 26th of January 2023, our latest 90 days buy-hold-sell recommendation on the enterprise is
Hold. We believe Charter Communications is currently
undervalued with
below average probability of distress for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Charter Communications. Please refer to our
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