Cash Rich, Low Price – Charter Communications Stock to Break Out?

We think Charter Communications (CHTR) stock is worth a look: It is growing, producing cash, and available at a significant valuation discount. Companies like this can use cash to fuel additional revenue growth, or simply pay their shareholders through dividends or buybacks. Either move makes them attractive to the market.

What Is Happening With CHTR

CHTR is down 43% so far this year and is now available at a significant discount to its 3-month, 1-year, and 2-year highs. This can be attributed to persistent internet customer losses amidst intense fiber and fixed wireless competition, alongside a slight overall revenue decline due to lower video and advertising sales. Increased capital expenditures for network evolution also pressured near-term free cash flow.

The stock may not reflect it yet, but here is what’s going well for the company: Charter is achieving significant growth in mobile, adding nearly 500,000 lines in Q3 2025. Video subscriber trends are improving with new packaging. While overall revenue saw a slight decline of 0.9% in Q3 2025, residential connectivity revenue grew 3.8%, supported by pricing adjustments and mobile expansion. Management projects 2025 as the peak capital investment year at $11.5 billion, signaling future free cash flow growth. Efforts to deleverage continue, and strategic investments in rural passings and network upgrades underscore long-term potential despite a current valuation discount.

CHTR Has Strong Fundamentals

• Cash Yield: Charter Communications offers an impressive cash flow yield of 11.3%.
• Growing: Revenue growth of 1.0% over the last twelve months is not that great, but your cash pile is likely to grow.
• Valuation Discount: CHTR stock is currently trading at 30% below its 3-month high, 54% below its 1-year high, and 54% below its 2-year high.

Below is a quick comparison of CHTR fundamentals with S&P medians.

*LTM: Last Twelve Months

But What About The Risk Involved?

While CHTR stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. CHTR fell 35% during the 2018 correction, 31% in the Covid selloff, and took a tougher hit with a 63% drop in the inflation shock. Even in times that felt less severe, losses over 30% popped up. Solid fundamentals don’t make it immune—when volatility spikes, sharp pullbacks can still happen. But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read CHTR Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

If you want to see more details, read Buy or Sell CHTR Stock.

Other Stocks Like CHTR

Not ready to act on CHTR? You could consider these alternatives:

1. Enphase Energy (ENPH)
2. Stride (LRN)
3. Remitly Global (RELY)

We chose these stocks using the following criteria:

1. Greater than $2 Bil in market cap
2. Positive revenue growth
3. High free cash flow yield
4. Meaningful discount to 3M, 1Y, and 2Y highs

A portfolio that was built starting 12/31/2016 with stocks that fulfil the criteria above would have performed as follows:

• Average 6-month and 12-month forward returns of 25.7% and 57.9% respectively
• Win rate (percentage of picks returning positive) of >70% for both 6-month and 12-month periods

Stock Picking Falls Short Against Multi Asset Portfolios

Markets move differently but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices