Charter Communications: Keep Adding On The Way Down

Charter Communications trades at a stressed valuation, with a market cap below 1x adjusted EBITDA despite recent operational headwinds. CHTR faces ongoing customer attrition and fiber competition, but mobile subscriber growth and network modernization underpin the long-term investment thesis. Free cash flow yield remains robust at 30%, with LTM FCF near $5 billion and aggressive share repurchases, supporting capital return and deleveraging. Future FCF is projected to exceed $9 billion annually as capex normalizes, enabling continued debt reduction and strong shareholder returns. Charter Communications has slid by more than 20% since we last recommended investing in the company. There continue to be concerns about the competition the company is facing with fiber