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CHTR – Market expectations are for Uniform ROA to decline, and management may have concerns about customer churn, infrastructure investments, and their DOCSIS 3.1 technology

March 12, 2021

  • Charter Communications, Inc. (CHTR:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 23.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may have concerns about customer churn levels, their broadband infrastructure investments, and their DOCSIS 3.1 technology
  • Specifically, management may lack confidence in their ability to strengthen their customer relationships, restore normal customer churn levels among new customers, and successfully deploy their radio access networks. Furthermore, they may be exaggerating the performance of their broadband infrastructure investments, the potential of their DOCSIS 3.1 technology, and their medium and long-term growth prospects. Management may also lack confidence in their ability to further expand their advanced in-home WiFi service footprint and improve returns leveraging their rural digital opportunity fund (RDOF) and citizens broadband radio service (CBRS) projects