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Charter CommunicationsCHTR -1.47%72 3-Year ROIIC % is 8.23 as of Dec. 2025, which is 335% above its 10-year median of 1.89. GuruFocus rates CHTR with a GF Score™ of 72/100 and a GF Value™ of $381.01 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 351 Telecommunication Services companies, Charter Communications ranks better than 64.39% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Charter Communications's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 8.23%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Charter Communications's 3-Year ROIIC % or its related term are showing as below:
CHTR's 3-Year ROIIC % is ranked better than 64.39% of 351
companies
in the Telecommunication Services industry
Industry Median: 1.72
vs CHTR: 8.23
Charter Communications (NAS:CHTR) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Charter Communications 3-Year ROIIC % Related Terms
Charter Communications 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Charter Communications's 3-Year ROIIC % 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.
CHTR vs TIGO, GSAT, LUMN: 3-Year ROIIC % Comparison
For the Telecom Services subindustry, Charter Communications's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Charter Communications's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Charter Communications's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Charter Communications (CHTR) has a 3-Year ROIIC % of 8.23 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Charter Communications and its competitors. This is 335% above median its historical median of 1.89. According to the industry distribution chart, Charter Communications ranks #125 out of 351 companies in the Telecommunication Services industry, placing it in the top 35.6%.
Is Charter Communications' 3-Year ROIIC % too high?
Charter Communications' current 3-Year ROIIC % of 8.23 is 335% above median its 10-year median of 1.89. The Telecommunication Services industry median 3-Year ROIIC % is 1.72. Charter Communications' value of 8.23 is 378.5% above this industry median. Based on the distribution chart, Charter Communications ranks #125 out of 351 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Charter Communications has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Charter Communications' 3-Year ROIIC % compare to TIGO and GSAT?
According to the Telecommunication Services industry distribution chart, Charter Communications ranks #125 out of 351 companies for 3-Year ROIIC %. This puts Charter Communications in the upper half of its industry. The industry median 3-Year ROIIC % is 1.72. Charter Communications' value of 8.23 is 378.5% above this benchmark. While the company's 10-year median is 1.89 vs. the industry median of 1.72, Charter Communications has consistently been above 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 3-Year ROIIC % for a Telecommunication Services company?
The median 3-Year ROIIC % among Telecommunication Services companies is 1.72, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Charter Communications's current 3-Year ROIIC % of 8.23 is 378.5% above 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Charter Communications and its competitors. For the Telecommunication Services industry, the median 3-Year ROIIC % is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charter Communications's current 3-Year ROIIC % is 8.23, which is 335% above median its own 10-year median of 1.89. 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 (CHTR) is currently considered Possible Value Trap. The stock's GF Value™ is $381.01, compared to a current price of $131.37 — trading 65.5% below its estimated fair value. The current 3-Year ROIIC % is 8.23, which is 335% above median its 10-year median of 1.89 and 378.5% above the Telecommunication Services industry median of 1.72. Charter Communications' overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Charter Communications (CHTR), the current 3-Year ROIIC % is 8.23 as of Dec. 2025. 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 (CHTR) Overvalued in 2026?
Based on GuruFocus' analysis, Charter Communications stock appears to be undervalued.
The current stock price of $131.37 is trading 65.5% below its estimated GF Value™ of $381.01.
GuruFocus considers Charter Communications to be Possible Value Trap.
Key valuation signals for CHTR:
3-Year ROIIC %: 8.23 (335% above median its 10-year median of 1.89)
GF Value™: $381.01 vs. price of $131.37 (65.5% below fair value)
Industry Position: 378.5% above the Telecommunication Services median (#125 of 351)
No single metric tells the full story. See the 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.
72GF Score
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