Recent News
On February 27, 2026 the FCC’s Wireline Competition Bureau approved Charter’s $34.5 billion combination with Cox, clearing a major regulatory hurdle. On February 11, 2026 Spectrum News announced acquisition of New England Cable News (NECN) from NBCUniversal, expanding regional news distribution. On March 4–10, 2026 company executives emphasized broadband growth, new product rollouts such as “Invincible WiFi,” and a $1,000 savings guarantee at the Morgan Stanley conference. On January 14, 2026 a large shareholder, Liberty Broadband, trimmed its stake via block sales.
Technical Analysis
Directional indicators show a low-strength environment: ADX at 12.6 signals no dominant trend and the DI lines conflict—DI+ at 19.14 trending decreasing (bearish), while DI- at 19.73 has peaked and reversed (bullish). Together these readings imply consolidation rather than a committed directional move, which supports a valuation-driven case for sideways-to-positive near-term action if fundamentals re-rate.
MACD registers a dip-and-reversal pattern (bullish momentum development) but remains negative at -1.40 and below the signal line (-0.74); momentum suggests recovery pressure exists yet a bullish crossover has not completed, so momentum gains require confirmation from a MACD move above its signal.
MRO sits negative at -19.45, indicating price below the model target and therefore room for mean reversion upward; the negative value supports potential upside toward the WMDST valuation band absent deterioration in fundamentals.
RSI at 49.21 with a dip-and-reversal pattern sits near neutral and implies no overbought/oversold bias; short-term oscillators point to rangebound action with modest upside potential if MACD continues to recover.
Price structure favors near-term stabilization: last close $219.14, slightly above the 20-day average ($217.25) and 50-day average ($218.28), but well below the 200-day average ($258.06), which preserves a longer-term discount. The 12-day EMA shows a dip-and-reversal, and price sits inside the 1x Bollinger band range (lower ~ $212.71, upper ~ $221.80), consistent with low ADX and consolidation. Volume runs below the 50- and 200-day averages, indicating muted conviction behind recent moves.
Fundamental Analysis
Profitability metrics provide a constructive backdrop for valuation. EBIT equals $3.231B and EBIT margin at 23.76% sits above the industry peer mean (~9.09%) and above the industry peer median (~10.17%), reflecting strong operating profitability relative to peers. Operating margin stands at 24.66% and operating income at $3.354B, supporting durable cash generation.
Earnings beat expectations: reported EPS $10.34 versus an estimate of $9.93, a positive surprise of $0.41 or about 4.13%, which underpins near-term sentiment and aligns with higher operating margins translating into realized earnings.
Valuation multiples trade at moderate levels: trailing P/E ~20.49 and forward P/E ~18.27; price-to-book ~1.67 sits slightly below the industry peer mean (~1.81). Free cash flow was $426M with a free cash flow yield of ~1.59%, marginally under the industry peer mean (~1.83%), and free cash growth shows a contraction, which tempers the attractiveness of the yield despite solid margins.
Leverage and coverage remain the primary constraint on upside. Net debt stands near $96.6B against a market cap near $26.8B, yielding a net-debt-to-market-cap multiple above 3.5x; debt-to-EBITDA reads ~17.9x and debt-to-equity ~6.05x. Interest coverage at ~2.54x compares materially below the industry peer mean (~18.16x), highlighting elevated financial risk and constrained flexibility until leverage declines. Revenue trends show slight year-over-year decline (~-1.55% YoY) and a sharper sequential decrease QoQ (~-24.01%), reinforcing why management emphasizes returning to broadband net adds as capital intensity falls.
WMDST values the stock as under-valued given resilient margins and recent earnings strength, but elevated leverage and weak cash-growth dynamics limit catalyst scope until deleveraging progresses or free cash flow recovers.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-01-30 |
| NEXT REPORT DATE: | 2026-05-01 |
| CASH FLOW | Begin Period Cash Flow | $ 521.0 M |
| Operating Cash Flow | $ 3.8 B | |
| Capital Expenditures | $ -3.33 B | |
| Change In Working Capital | $ -410.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 77.0 M | |
| End Period Cash Flow | $ 598.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 13.6 B | |
| Forward Revenue | $ 3.8 B | |
| COSTS | ||
| Cost Of Revenue | $ 5.9 B | |
| Depreciation | $ 2.2 B | |
| Depreciation and Amortization | $ 2.2 B | |
| Research and Development | — | |
| Total Operating Expenses | $ 10.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 7.7 B | |
| EBITDA | $ 5.4 B | |
| EBIT | $ 3.2 B | |
| Operating Income | $ 3.4 B | |
| Interest Income | — | |
| Interest Expense | $ 1.3 B | |
| Net Interest Income | $ -1.27 B | |
| Income Before Tax | $ 2.0 B | |
| Tax Provision | $ 415.0 M | |
| Tax Rate | 21.163 % | |
| Net Income | $ 1.3 B | |
| Net Income From Continuing Operations | $ 1.5 B | |
| EARNINGS | ||
| EPS Estimate | $ 9.93 | |
| EPS Actual | $ 10.34 | |
| EPS Difference | $ 0.41 | |
| EPS Surprise | 4.129 % | |
| Forward EPS | $ 11.83 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 154.2 B | |
| Intangible Assets | $ 97.6 B | |
| Net Tangible Assets | $ -81.57 B | |
| Total Current Assets | $ 5.1 B | |
| Cash and Short-Term Investments | $ 477.0 M | |
| Cash | $ 477.0 M | |
| Net Receivables | $ 3.7 B | |
| Inventory | — | |
| Long-Term Investments | $ 5.0 B | |
| LIABILITIES | ||
| Accounts Payable | $ 1.0 B | |
| Short-Term Debt | $ 1.7 B | |
| Total Current Liabilities | $ 13.3 B | |
| Net Debt | $ 96.6 B | |
| Total Debt | $ 97.1 B | |
| Total Liabilities | $ 133.7 B | |
| EQUITY | ||
| Total Equity | $ 16.1 B | |
| Retained Earnings | $ -5.39 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 126.78 | |
| Shares Outstanding | 126.632 M | |
| Revenue Per-Share | $ 107.41 | |
| VALUATION | Market Capitalization | $ 26.8 B |
| Enterprise Value | $ 123.5 B | |
| Enterprise Multiple | 22.76 | |
| Enterprise Multiple QoQ | -11.144 % | |
| Enterprise Multiple YoY | 136.189 % | |
| Enterprise Multiple IPRWA | high: 64.866 mean: 34.455 median: 25.876 CHTR: 22.76 low: -5.258 |
|
| EV/R | 9.078 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 9.606 | |
| Asset To Liability | 1.153 | |
| Debt To Capital | 0.858 | |
| Debt To Assets | 0.63 | |
| Debt To Assets QoQ | -0.827 % | |
| Debt To Assets YoY | 3595.892 % | |
| Debt To Assets IPRWA | high: 1.69 CHTR: 0.63 median: 0.349 mean: 0.325 low: 0.012 |
|
| Debt To Equity | 6.05 | |
| Debt To Equity QoQ | -4.392 % | |
| Debt To Equity YoY | 3587.681 % | |
| Debt To Equity IPRWA | CHTR: 6.05 high: 3.615 median: 0.907 mean: 0.796 low: -3.16 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.671 | |
| Price To Book QoQ | -28.032 % | |
| Price To Book YoY | -48.713 % | |
| Price To Book IPRWA | high: 5.379 median: 1.857 mean: 1.812 CHTR: 1.671 low: -0.597 |
|
| Price To Earnings (P/E) | 20.488 | |
| Price To Earnings QoQ | -37.918 % | |
| Price To Earnings YoY | -42.163 % | |
| Price To Earnings IPRWA | high: 106.029 mean: 54.759 median: 34.324 CHTR: 20.488 low: -109.964 |
|
| PE/G Ratio | 0.854 | |
| Price To Sales (P/S) | 1.972 | |
| Price To Sales QoQ | -24.289 % | |
| Price To Sales YoY | -45.914 % | |
| Price To Sales IPRWA | high: 13.686 median: 5.727 mean: 5.401 CHTR: 1.972 low: 0.224 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 18.273 | |
| Forward PE/G | 0.762 | |
| Forward P/S | 6.729 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -14.689 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.089 | |
| Asset Turnover Ratio QoQ | -1.369 % | |
| Asset Turnover Ratio YoY | -4.773 % | |
| Asset Turnover Ratio IPRWA | high: 0.283 mean: 0.147 median: 0.118 CHTR: 0.089 low: 0.064 |
|
| Receivables Turnover | 3.738 | |
| Receivables Turnover Ratio QoQ | -2.31 % | |
| Receivables Turnover Ratio YoY | -17.283 % | |
| Receivables Turnover Ratio IPRWA | CHTR: 3.738 high: 3.242 mean: 1.979 median: 1.815 low: 0.991 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 24.414 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 13.17 | |
| Cash Conversion Cycle Days QoQ | 17.99 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 144.763 mean: 40.868 median: 28.512 CHTR: 13.17 low: -95.091 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -1.666 | |
| CapEx To Revenue | -0.245 | |
| CapEx To Depreciation | -1.52 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 111.5 B | |
| Net Invested Capital | $ 113.2 B | |
| Invested Capital | $ 113.2 B | |
| Net Tangible Assets | $ -81.57 B | |
| Net Working Capital | $ -8.16 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.036 | |
| Current Ratio | 0.387 | |
| Current Ratio QoQ | 3.212 % | |
| Current Ratio YoY | 23.165 % | |
| Current Ratio IPRWA | high: 2.784 mean: 1.464 median: 1.056 low: 0.404 CHTR: 0.387 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 17.902 | |
| Cost Of Debt | 1.031 % | |
| Interest Coverage Ratio | 2.544 | |
| Interest Coverage Ratio QoQ | 7.458 % | |
| Interest Coverage Ratio YoY | -2.375 % | |
| Interest Coverage Ratio IPRWA | high: 147.5 mean: 18.159 median: 2.917 CHTR: 2.544 low: -15.218 |
|
| Operating Cash Flow Ratio | 0.264 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 11.245 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.892 % | |
| Revenue Growth | -0.519 % | |
| Revenue Growth QoQ | -24.012 % | |
| Revenue Growth YoY | -154.632 % | |
| Revenue Growth IPRWA | high: 71.226 % mean: 11.536 % median: 4.588 % CHTR: -0.519 % low: -6.502 % |
|
| Earnings Growth | 23.981 % | |
| Earnings Growth QoQ | -362.087 % | |
| Earnings Growth YoY | 65.249 % | |
| Earnings Growth IPRWA | high: 260.0 % CHTR: 23.981 % mean: 7.283 % median: -25.0 % low: -201.984 % |
|
| MARGINS | ||
| Gross Margin | 56.974 % | |
| Gross Margin QoQ | 40.075 % | |
| Gross Margin YoY | -45.209 % | |
| Gross Margin IPRWA | high: 97.722 % median: 68.106 % mean: 58.362 % CHTR: 56.974 % low: 37.002 % |
|
| EBIT Margin | 23.756 % | |
| EBIT Margin QoQ | 8.193 % | |
| EBIT Margin YoY | -0.352 % | |
| EBIT Margin IPRWA | high: 31.652 % CHTR: 23.756 % median: 10.167 % mean: 9.085 % low: -43.986 % |
|
| Return On Sales (ROS) | 24.66 % | |
| Return On Sales QoQ | 3.74 % | |
| Return On Sales YoY | 3.44 % | |
| Return On Sales IPRWA | high: 26.635 % CHTR: 24.66 % mean: 10.923 % median: 10.789 % low: -11.831 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 426.0 M | |
| Free Cash Flow Yield | 1.588 % | |
| Free Cash Flow Yield QoQ | -60.419 % | |
| Free Cash Flow Yield YoY | -46.023 % | |
| Free Cash Flow Yield IPRWA | high: 24.977 % median: 2.073 % mean: 1.832 % CHTR: 1.588 % low: -2.972 % |
|
| Free Cash Growth | -70.189 % | |
| Free Cash Growth QoQ | -263.067 % | |
| Free Cash Growth YoY | -719.716 % | |
| Free Cash Growth IPRWA | high: 516.576 % median: 97.29 % mean: 74.329 % CHTR: -70.189 % low: -519.247 % |
|
| Free Cash To Net Income | 0.32 | |
| Cash Flow Margin | 25.829 % | |
| Cash Flow To Earnings | 2.637 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.868 % | |
| Return On Assets QoQ | 16.198 % | |
| Return On Assets YoY | -11.338 % | |
| Return On Assets IPRWA | high: 6.218 % CHTR: 0.868 % median: 0.795 % mean: 0.773 % low: -3.114 % |
|
| Return On Capital Employed (ROCE) | 2.293 % | |
| Return On Equity (ROE) | 0.083 | |
| Return On Equity QoQ | 11.94 % | |
| Return On Equity YoY | -11.781 % | |
| Return On Equity IPRWA | high: 0.115 CHTR: 0.083 median: 0.022 mean: 0.016 low: -0.164 |
|
| DuPont ROE | 8.486 % | |
| Return On Invested Capital (ROIC) | 2.251 % | |
| Return On Invested Capital QoQ | 11.051 % | |
| Return On Invested Capital YoY | -98.264 % | |
| Return On Invested Capital IPRWA | high: 6.371 % CHTR: 2.251 % mean: 1.619 % median: 1.608 % low: -1.425 % |
|