Charter Communications, Inc. (CHTR): A Bull Case Theory 

We came across a bullish thesis on Charter Communications, Inc. on Cornerstone Value’s Substack. In this article, we will summarize the bulls’ thesis on CHTR. Charter Communications, Inc.’s share was trading at $270.57 as of September 25th. CHTR’s trailing and forward P/E were 7.41 and 6.15 respectively according to Yahoo Finance.

Charter Communications is the second-largest broadband provider in the U.S., serving roughly 26% of consumers and controlling critical infrastructure worth tens of billions to replicate. Despite recent challenges from increased competition via Fixed Wireless Access and fiber overbuilders, the company’s hybrid-fiber coaxial network remains dominant, delivering speeds far beyond typical household needs and scalable via DOCSIS 4.0 upgrades.

Charter’s high-speed internet business drives the vast majority of earnings, while video and wireless offerings provide incremental growth, with Spectrum Mobile emerging as the fastest-growing U.S. mobile network. Bundled offerings through Spectrum One reduce churn, improve ARPU, and reinforce competitive moats.

Post-COVID broadband dynamics introduced subscriber volatility, with temporary losses driven by the Affordable Connectivity Program and heightened competition. However, both FWA and fiber have inherent limitations, including capacity constraints and cost inefficiencies, suggesting HFC will maintain a central role in U.S. broadband. Charter’s stock is currently undervalued, trading at roughly 9x free cash flow and 6.5x forward earnings, reflecting excessive pessimism. Stabilization in net broadband additions, moderation in capital expenditures, and a return to aggressive buybacks present a clear path to re-rating.

Further upside is expected from pending strategic transactions, including the Liberty Broadband merger, which streamlines the capital structure, and the proposed Cox Communications merger, which would elevate Charter to #1 market share and create significant synergies across converged offerings.

Charter’s long-dated, low-rate debt enhances shareholder value, while operational resilience, strong cash flow, and a dominant infrastructure footprint provide an exceptionally attractive risk/reward profile. Overall, CHTR represents a compelling investment opportunity, with multiple catalysts—including subscriber stabilization, merger synergies, and capital return initiatives—poised to drive significant upside over the next 12–24 months.

Previously we covered a bullish thesis on Verizon Communications Inc. (VZ) by Charly AI in April 2025, which highlighted the company’s 5G and fiber expansion, IoT partnerships, and attractive dividend yield. The stock has appreciated approximately 2.79% since our coverage as Verizon’s growth initiatives partially played out. The thesis still stands, while Cornerstone Value emphasizes Charter Communications’ scale, competitive positioning, and pending mergers as key catalysts.

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Disclosure: None.