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On February 27, 2026 the combination with Cox Communications received regulatory movement, and state-level evidentiary hearings continued through April, keeping a mid‑2026 close as the working timeline. LightReading reported industry complaints that Charter has resisted signing or renewing wholesale arrangements with some wireless ISPs, a regulatory friction point for the combination. Charter scheduled management appearances at investor conferences in April–May 2026, maintaining an active investor engagement cadence ahead of integration milestones.
Technical Analysis
Directional indicators present a strong trending environment: ADX at 36.68 signals a very strong trend, while DI- (37.78, increasing) dominates DI+ (15.37) despite a DI+ dip-and-reverse that represents a recent bullish attempt. The net directional bias therefore favors downside pressure even as buyers showed a short-lived pickup.
MACD sits negative at -$17.92 and trends lower with the MACD below its signal line (-$15.14); that combination indicates prevailing bearish momentum and confirms selling pressure has remained in control.
MRO reads -46.97 with a dip-and-reversal pattern; the negative MRO implies price sits below the WMDST target and therefore carries rebound potential, and the recent dip-and-reverse in MRO strengthens the case for a tactical mean reversion trade if selling momentum eases.
RSI at 39.97 and falling shows weakening short-term buying conviction; the oscillator remains above a classic oversold boundary but signals that downside momentum currently outpaces recovery attempts.
Price sits below most short- and medium-term averages: the 12‑day EMA (price12dayEMA) and 20‑day average both trend down, the 26‑day EMA stays above the 12‑day, and the close ($140.33) trades well under the 50‑day ($202.57) and 200‑day ($226.11) averages—a configuration that biases near-term action lower unless a sustained shift occurs.
Bollinger context: the close trades below the 1‑sigma lower band ($145.09) and approaches the 2‑sigma lower band ($133.68), indicating a volatility‑driven breakdown from recent range support. Volume on the print (5,002,309) exceeded the 10‑day and 50‑day averages, consistent with distribution rather than light selling.
Price targets show wide dispersion (mean $88.31, high $239.40, low $80.22), underscoring divergent analyst views; given the strong ADX and DI‑ dominance, expect elevated two‑way volatility while the merger process and news flow resolve.
Fundamental Analysis
Profitability and margins: operating margin stands at 23.704% and EBIT margin at 22.681%. Charter’s EBIT margin exceeds the industry peer mean of 12.109% and the industry peer median of 12.166%, placing Charter toward the upper half of the peer range but below the industry high of 31.042%. Quarter‑over‑quarter EBIT margin fell by 4.525%, while year‑over‑year EBIT margin rose by 0.652%, showing stable absolute margins despite near‑term compression.
Earnings per share and surprises: reported EPS totaled $9.17 versus an estimate of $10.08, a shortfall of $0.91 or a -9.03% surprise. Forward EPS sits at $11.05, and forward P/E equals 18.59x versus the trailing P/E of 24.42x, implying some easing of multiple on forward expectations.
Valuation multiples and cash returns: price‑to‑book runs 1.73x, above the industry peer mean book multiple of 1.1837; price‑to‑sales measures 2.09x versus an industry peer mean of 3.3234, indicating a lighter revenue multiple compared with peers. Free cash flow yield equals 4.84%, above the industry peer mean of 3.65%, supporting the view that operating cash conversion remains a relative strength. WMDST values the stock as under‑valued based on the combination of cash yield and normalized operating margins.
Leverage and coverage: total debt stands near $96.82 billion with net debt roughly $96.31 billion; debt‑to‑EBITDA measures 18.29x and debt‑to‑equity at 5.91x, both materially higher than typical peer medians and signaling elevated leverage. Interest coverage equals 2.46x, below the industry peer mean coverage of 3.42x, indicating tighter interest servicing flexibility. The high leverage level represents the primary fundamental risk to near‑term valuation despite strong cash flow generation.
Revenue and growth: reported total revenue equals $13.597 billion. Reported revenue growth shows conflicting short‑run signals by measure; QoQ metric indicates a meaningful sequential contraction while year‑over‑year changes show larger movement—readers should prioritize the operating cash flow profile and margins when assessing short‑term valuation given the company’s leverage. Earnings growth sits negative at -11.315% with QoQ deterioration; operating cash flow remains robust at $4.304 billion and free cash flow at $1.372 billion.
Valuation summary: WMDST’s valuation framework weighs the elevated leverage and compressed near‑term earnings against above‑peer EBIT margins and a free cash flow yield above the peer mean, producing an under‑valued designation. The balance between leverage risk and cash generation will determine whether the under‑valued tag tightens or loosens as merger integration and regulatory outcomes arrive.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-24 |
| NEXT REPORT DATE: | 2026-07-24 |
| CASH FLOW | Begin Period Cash Flow | $ 598.0 M |
| Operating Cash Flow | $ 4.3 B | |
| Capital Expenditures | $ -2.93 B | |
| Change In Working Capital | $ 181.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 24.0 M | |
| End Period Cash Flow | $ 622.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 13.6 B | |
| Forward Revenue | $ 4.0 B | |
| COSTS | ||
| Cost Of Revenue | $ 5.9 B | |
| Depreciation | $ 2.2 B | |
| Depreciation and Amortization | $ 2.2 B | |
| Research and Development | — | |
| Total Operating Expenses | $ 10.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 7.7 B | |
| EBITDA | $ 5.3 B | |
| EBIT | $ 3.1 B | |
| Operating Income | $ 3.2 B | |
| Interest Income | — | |
| Interest Expense | $ 1.3 B | |
| Net Interest Income | $ -1.26 B | |
| Income Before Tax | $ 1.8 B | |
| Tax Provision | $ 465.0 M | |
| Tax Rate | 25.438 % | |
| Net Income | $ 1.2 B | |
| Net Income From Continuing Operations | $ 1.4 B | |
| EARNINGS | ||
| EPS Estimate | $ 10.08 | |
| EPS Actual | $ 9.17 | |
| EPS Difference | $ -0.91 | |
| EPS Surprise | -9.028 % | |
| Forward EPS | $ 11.05 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 154.6 B | |
| Intangible Assets | $ 97.5 B | |
| Net Tangible Assets | $ -81.12 B | |
| Total Current Assets | $ 5.0 B | |
| Cash and Short-Term Investments | $ 517.0 M | |
| Cash | $ 517.0 M | |
| Net Receivables | $ 3.5 B | |
| Inventory | — | |
| Long-Term Investments | $ 5.0 B | |
| LIABILITIES | ||
| Accounts Payable | $ 1.0 B | |
| Short-Term Debt | $ 812.0 M | |
| Total Current Liabilities | $ 12.4 B | |
| Net Debt | $ 96.3 B | |
| Total Debt | $ 96.8 B | |
| Total Liabilities | $ 133.6 B | |
| EQUITY | ||
| Total Equity | $ 16.4 B | |
| Retained Earnings | $ -4.23 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 129.39 | |
| Shares Outstanding | 122.985 M | |
| Revenue Per-Share | $ 107.37 | |
| VALUATION | Market Capitalization | $ 28.4 B |
| Enterprise Value | $ 124.7 B | |
| Enterprise Multiple | 23.544 | |
| Enterprise Multiple QoQ | 3.445 % | |
| Enterprise Multiple YoY | -13.891 % | |
| Enterprise Multiple IPRWA | high: 24.721 median: 24.721 CHTR: 23.544 mean: 22.33 low: -274.874 |
|
| EV/R | 9.168 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 9.438 | |
| Asset To Liability | 1.158 | |
| Debt To Capital | 0.855 | |
| Debt To Assets | 0.626 | |
| Debt To Assets QoQ | -0.584 % | |
| Debt To Assets YoY | -1.093 % | |
| Debt To Assets IPRWA | CHTR: 0.626 high: 0.563 median: 0.364 mean: 0.363 low: 0.001 |
|
| Debt To Equity | 5.909 | |
| Debt To Equity QoQ | -2.322 % | |
| Debt To Equity YoY | 0.47 % | |
| Debt To Equity IPRWA | CHTR: 5.909 high: 2.105 median: 1.072 mean: 1.072 low: -0.004 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.731 | |
| Price To Book QoQ | 3.576 % | |
| Price To Book YoY | -43.186 % | |
| Price To Book IPRWA | CHTR: 1.731 high: 1.19 median: 1.19 mean: 1.184 low: -0.006 |
|
| Price To Earnings (P/E) | 24.422 | |
| Price To Earnings QoQ | 19.2 % | |
| Price To Earnings YoY | -41.684 % | |
| Price To Earnings IPRWA | high: 128.489 median: 37.17 mean: 36.868 CHTR: 24.422 low: 12.902 |
|
| PE/G Ratio | -2.158 | |
| Price To Sales (P/S) | 2.086 | |
| Price To Sales QoQ | 5.743 % | |
| Price To Sales YoY | -42.122 % | |
| Price To Sales IPRWA | high: 3.339 median: 3.339 mean: 3.323 CHTR: 2.086 low: 0.008 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 18.59 | |
| Forward PE/G | -1.643 | |
| Forward P/S | 6.46 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 154.7 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.088 | |
| Asset Turnover Ratio QoQ | -0.61 % | |
| Asset Turnover Ratio YoY | -3.528 % | |
| Asset Turnover Ratio IPRWA | high: 0.178 mean: 0.118 median: 0.118 CHTR: 0.088 low: 0.063 |
|
| Receivables Turnover | 3.782 | |
| Receivables Turnover Ratio QoQ | 1.194 % | |
| Receivables Turnover Ratio YoY | -11.772 % | |
| Receivables Turnover Ratio IPRWA | high: 7.651 CHTR: 3.782 mean: 2.272 median: 2.251 low: 1.198 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 24.126 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 7.886 | |
| Cash Conversion Cycle Days QoQ | -40.119 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 134.4 median: 134.4 mean: 71.946 CHTR: 7.886 low: -17.812 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -1.834 | |
| CapEx To Revenue | -0.216 | |
| CapEx To Depreciation | -1.326 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 112.4 B | |
| Net Invested Capital | $ 113.2 B | |
| Invested Capital | $ 113.2 B | |
| Net Tangible Assets | $ -81.12 B | |
| Net Working Capital | $ -7.42 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.042 | |
| Current Ratio | 0.401 | |
| Current Ratio QoQ | 3.678 % | |
| Current Ratio YoY | 10.304 % | |
| Current Ratio IPRWA | high: 5.858 mean: 0.873 low: 0.865 median: 0.865 CHTR: 0.401 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 18.286 | |
| Cost Of Debt | 0.966 % | |
| Interest Coverage Ratio | 2.455 | |
| Interest Coverage Ratio QoQ | -3.486 % | |
| Interest Coverage Ratio YoY | -1.546 % | |
| Interest Coverage Ratio IPRWA | high: 3.62 median: 3.498 mean: 3.423 CHTR: 2.455 low: -6.114 |
|
| Operating Cash Flow Ratio | 0.288 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 16.24 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.279 % | |
| Revenue Growth | -0.029 % | |
| Revenue Growth QoQ | -94.412 % | |
| Revenue Growth YoY | -97.886 % | |
| Revenue Growth IPRWA | CHTR: -0.029 % high: -2.64 % median: -2.64 % mean: -2.938 % low: -40.283 % |
|
| Earnings Growth | -11.315 % | |
| Earnings Growth QoQ | -147.183 % | |
| Earnings Growth YoY | -31.977 % | |
| Earnings Growth IPRWA | high: 17.512 % mean: -5.96 % CHTR: -11.315 % median: -31.461 % low: -41.21 % |
|
| MARGINS | ||
| Gross Margin | 56.777 % | |
| Gross Margin QoQ | -0.346 % | |
| Gross Margin YoY | 16.184 % | |
| Gross Margin IPRWA | high: 73.4 % median: 65.4 % mean: 65.357 % CHTR: 56.777 % low: 54.33 % |
|
| EBIT Margin | 22.681 % | |
| EBIT Margin QoQ | -4.525 % | |
| EBIT Margin YoY | 0.652 % | |
| EBIT Margin IPRWA | high: 31.042 % CHTR: 22.681 % median: 12.166 % mean: 12.109 % low: -8.174 % |
|
| Return On Sales (ROS) | 23.704 % | |
| Return On Sales QoQ | -3.877 % | |
| Return On Sales YoY | 5.192 % | |
| Return On Sales IPRWA | high: 25.326 % CHTR: 23.704 % median: 13.145 % mean: 13.044 % low: -16.296 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.4 B | |
| Free Cash Flow Yield | 4.838 % | |
| Free Cash Flow Yield QoQ | 204.66 % | |
| Free Cash Flow Yield YoY | 53.101 % | |
| Free Cash Flow Yield IPRWA | high: 8.652 % CHTR: 4.838 % median: 3.714 % mean: 3.648 % low: -1855.379 % |
|
| Free Cash Growth | 222.066 % | |
| Free Cash Growth QoQ | -416.383 % | |
| Free Cash Growth YoY | -24.201 % | |
| Free Cash Growth IPRWA | CHTR: 222.066 % high: 30.868 % median: -10.691 % mean: -12.031 % low: -169.462 % |
|
| Free Cash To Net Income | 1.18 | |
| Cash Flow Margin | 26.175 % | |
| Cash Flow To Earnings | 3.06 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.753 % | |
| Return On Assets QoQ | -13.249 % | |
| Return On Assets YoY | -6.922 % | |
| Return On Assets IPRWA | high: 3.311 % mean: 0.835 % median: 0.816 % CHTR: 0.753 % low: -1.828 % |
|
| Return On Capital Employed (ROCE) | 2.168 % | |
| Return On Equity (ROE) | 0.071 | |
| Return On Equity QoQ | -14.451 % | |
| Return On Equity YoY | -5.246 % | |
| Return On Equity IPRWA | high: 0.081 CHTR: 0.071 mean: 0.025 median: 0.025 low: 0.024 |
|
| DuPont ROE | 7.17 % | |
| Return On Invested Capital (ROIC) | 2.031 % | |
| Return On Invested Capital QoQ | -9.773 % | |
| Return On Invested Capital YoY | -3.47 % | |
| Return On Invested Capital IPRWA | CHTR: 2.031 % high: 1.804 % median: 1.552 % mean: 1.525 % low: -2.087 % |
|