Charter CommunicationsMEX:CHTR +10.83%49 Interest Coverage is 2.57 as of Mar. 2026, which is 11% above its 10-year median of 2.31. GuruFocus rates MEX:CHTR with a GF Score™ of 49/100 and a GF Value™ of MXN6,777.21 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 284 Telecommunication Services companies, Charter Communications ranks worse than 69.72% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Charter Communications's
Operating Income
for the
three
months ended in Mar. 2026 was MXN58,119 Mil. Charter Communications's Interest Expense for the
three
months ended in Mar. 2026 was MXN-22,649 Mil.
Charter Communications's interest coverage for the quarter that ended in Mar. 2026 was 2.57.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Charter Communications Inc interest coverage is 2.61, which is low.
The historical rank and industry rank for Charter Communications's Interest Coverage or its related term are showing as below:
MEX:CHTR'
s Interest Coverage Range Over the Past 10 Years
Min: 1.38 Med: 2.31 Max: 2.69
Current: 2.61
MEX:CHTR's Interest Coverage is ranked worse than 69.72% of 284
companies
in the Telecommunication Services industry
Industry Median: 4.685
vs MEX:CHTR: 2.61
Charter Communications (MEX:CHTR) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Charter Communications Interest Coverage Related Terms
Charter Communications Interest Coverage Historical Data
* Premium members only.
The historical data trend for Charter Communications's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:CHTR vs TIGO, GSAT, LUMN: Interest Coverage Comparison
For the Telecom Services subindustry, Charter Communications's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Charter Communications Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Charter Communications's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Charter Communications's Interest Coverage falls into.
Charter Communications Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Charter Communications (MEX:CHTR) has a Interest Coverage of 2.57 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Charter Communications and its competitors. This is 11% above median its historical median of 2.31. Over the past decade, Charter Communications' Interest Coverage has ranged from 1.38 to 2.69. According to the industry distribution chart, Charter Communications ranks #198 out of 284 companies in the Telecommunication Services industry, placing it in the top 69.7%.
Is Charter Communications' Interest Coverage too high?
Charter Communications' current Interest Coverage of 2.57 is 11% above median its 10-year median of 2.31. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 2.69. The Telecommunication Services industry median Interest Coverage is 4.69. Charter Communications' value of 2.57 is 45.1% below this industry median. Based on the distribution chart, Charter Communications ranks #198 out of 284 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Charter Communications has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Charter Communications' Interest Coverage compare to TIGO and GSAT?
According to the Telecommunication Services industry distribution chart, Charter Communications ranks #198 out of 284 companies for Interest Coverage. This places Charter Communications in the lower half of its industry. The industry median Interest Coverage is 4.69. Charter Communications' value of 2.57 is 45.1% below this benchmark. Historically, Charter Communications' own Interest Coverage has ranged from 1.38 to 2.69 over the past decade. While the company's 10-year median is 2.31 vs. the industry median of 4.69, Charter Communications has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Charter Communications's current Interest Coverage of 2.57 is 45.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Charter Communications and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charter Communications's current Interest Coverage is 2.57, which is 11% above median its own 10-year median of 2.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charter Communications stock overvalued right now?
Based on GuruFocus' analysis, Charter Communications (MEX:CHTR) is currently considered Possible Value Trap. The stock's GF Value™ is MXN6,777.21, compared to a current price of MXN2,610.00 — trading 61.5% below its estimated fair value. The current Interest Coverage is 2.57, which is 11% above median its 10-year median of 2.31 and 45.1% below the Telecommunication Services industry median of 4.69. Charter Communications' overall GF Score™ is 49/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Charter Communications (MEX:CHTR), the current Interest Coverage is 2.57 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Charter Communications (MEX:CHTR) Overvalued in 2026?
Based on GuruFocus' analysis, Charter Communications stock appears to be undervalued.
The current stock price of MXN2,610.00 is trading 61.5% below its estimated GF Value™ of MXN6,777.21.
GuruFocus considers Charter Communications to be Possible Value Trap.
Key valuation signals for MEX:CHTR:
Interest Coverage: 2.57 (11% above median its 10-year median of 2.31)
GF Value™: MXN6,777.21 vs. price of MXN2,610.00 (61.5% below fair value)
Industry Position: 45.1% below the Telecommunication Services median (#198 of 284)
No single metric tells the full story. See the MEX:CHTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 59 million US homes and businesses, around 35% of the country. Across this footprint, Charter serves 29 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest US cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (Los Angeles Lakers), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1. Charter plans to acquire cable peer Cox.
49GF Score
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