Charter: Stability In Q3 Results, 10%+ Free Cash Flow Yield

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Librarian Capital
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Summary

  • Charter's Q3 results on Friday sent its share price up another 3.7%, but shares remain 55% down from their peak in September 2021.
  • Despite macro headwinds, Internet revenues grew both year-on-year and sequentially; Free Cash Flow grew 5% excluding one-offs.
  • Internet net adds returned to positive in Q3, and churn stayed historically low, despite even larger rival Fixed Wireless net adds.
  • Charter shares have a 10% Free Cash Flow Yield, and management is sticking with their accretive leverage and buyback policies.
  • With shares at $368.24, we expect an exit price of $1,000 and a total return of 172% (37.1% annualized) by 2025 year-end. Buy.

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Introduction: Why Is CHTR Stock Up?

Charter Communications Inc. (NASDAQ:CHTR) released its Q3 2022 results on Friday (October 28). CHTR stock closed up 3.7%, having already gained 3.0% the day before when Q3 results from Comcast (

This article was written by

Librarian Capital profile picture
7.78K Followers
Global, long-term, fundamentally-oriented & concentrated investing. With more than 10 years' buy-side experience, I look at stocks globally and across industries, with a focus on the U.S. and U.K.. My investing style can best be described as "Quality Growth" or "Growth At a Reasonable Price". (previously writing under the name "Blue Sky Capital" until December 2019)

Disclosure: I/we have a beneficial long position in the shares of CHTR,CMCSA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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