Eagle Capital Management: Charter Communications (CHTR) free cash flow yield to exceed 30%, expected to deleverage and return capital to shareholders
Eagle Capital Management noted in its Q2 2026 investor letter that broadband connectivity company Charter Communications (NASDAQ:CHTR) will become the largest cable operator in the United States after acquiring Cox. Despite the competitive pressures and sluggish growth facing the cable industry, Eagle Capital Management believes that CHTR's equity is cheaply priced, with 80% of its capital structure consisting of low-cost, long-term debt. The firm expects CHTR's free cash flow yield to exceed 30% in the coming years, and that the company will have ample liquidity to deleverage and return cash to shareholders. Eagle Capital Management also anticipates that CHTR could be integrated by Comcast, telecommunications companies, or even non-traditional buyers in the future, with its stock price potentially doubling in some scenarios. The firm projects that these types of companies, including CHTR, will see an earnings per share (EPS) growth rate of approximately 20% in the coming years.
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