CHTR – Market expectations are for Uniform ROA to expand, but management may have concerns about growth, costs, and their network

• Charter Communications, Inc. (CHTR:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 25.2x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about customer relationship growth, operating and labor costs, and their network
  
  

• Specifically, management may lack confidence in their ability to sustain long-term customer relationship and mobile lines growth, reduce regular operating costs, and manage labor, insourcing, and integration costs. Moreover, they may be exaggerating their capital deployment strategy discipline, their ability to create long-term shareholder value, and the potential of their mobile bundles. Furthermore, they may be downplaying concerns about the number of people that have been priced out of the market, and they may be exaggerating their data viewing capabilities and their ability to sustain homes passed expansion. Finally, they may have concerns about their leverage ratios, network capabilities, and the progress of their back-end integration