Charter CommunicationsCHTR +9.38%72 Altman Z2-Score is 0.27 as of Jun. 30, 2026, which is 17% above its 10-year median of 0.23. GuruFocus rates CHTR with a GF Score™ of 72/100 and a GF Value™ of $379.55 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 363 Telecommunication Services companies, Charter Communications ranks worse than 72.18% on this metric.
Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
Warning Sign:
Charter Communications has a Altman Z2-Score of 0.27, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for Charter Communications's Altman Z2-Score or its related term are showing as below:
CHTR'
s Altman Z2-Score Range Over the Past 10 Years
Min: -0.09 Med: 0.23 Max: 0.43
Current: 0.27
During the past 13 years, Charter Communications's highest Altman Z2-Score was 0.43. The lowest was -0.09. And the median was 0.23.
Charter Communications (NAS:CHTR) Altman Z2-Score Explanation
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
Altman Z2-Score does not apply to financial companies.
Charter Communications Altman Z2-Score Related Terms
Charter Communications Altman Z2-Score Historical Data
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The historical data trend for Charter Communications's Altman Z2-Score 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: Altman Z2-Score Comparison
For the Telecom Services subindustry, Charter Communications's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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 Altman Z2-Score vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Charter Communications's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Charter Communications's Altman Z2-Score falls into.
Charter Communications Altman Z2-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
Charter Communications (CHTR) has a Altman Z2-Score of 0.27 as of Jun. 30, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Charter Communications and its competitors. This is 17% above median its historical median of 0.23. According to the industry distribution chart, Charter Communications ranks #262 out of 363 companies in the Telecommunication Services industry, placing it in the top 72.2%.
Is Charter Communications' Altman Z2-Score too high?
Charter Communications' current Altman Z2-Score of 0.27 is 17% above median its 10-year median of 0.23. The Telecommunication Services industry median Altman Z2-Score is 1.68. Charter Communications' value of 0.27 is 83.9% below this industry median. Based on the distribution chart, Charter Communications ranks #262 out of 363 companies in the Telecommunication Services industry, which is below 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' Altman Z2-Score compare to TIGO and GSAT?
According to the Telecommunication Services industry distribution chart, Charter Communications ranks #262 out of 363 companies for Altman Z2-Score. This places Charter Communications in the lower half of its industry. The industry median Altman Z2-Score is 1.68. Charter Communications' value of 0.27 is 83.9% below this benchmark. While the company's 10-year median is 0.23 vs. the industry median of 1.68, 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 Altman Z2-Score for a Telecommunication Services company?
The median Altman Z2-Score among Telecommunication Services companies is 1.68, based on 363 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Charter Communications's current Altman Z2-Score of 0.27 is 83.9% 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 Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Charter Communications and its competitors. For the Telecommunication Services industry, the median Altman Z2-Score is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charter Communications's current Altman Z2-Score is 0.27, which is 17% above median its own 10-year median of 0.23. 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 $379.55, compared to a current price of $146.17 — trading 61.5% below its estimated fair value. The current Altman Z2-Score is 0.27, which is 17% above median its 10-year median of 0.23 and 83.9% below the Telecommunication Services industry median of 1.68. 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 Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For Charter Communications (CHTR), the current Altman Z2-Score is 0.27 as of Jun. 30, 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 (CHTR) Overvalued in 2026?
Based on GuruFocus' analysis, Charter Communications stock appears to be undervalued.
The current stock price of $146.17 is trading 61.5% below its estimated GF Value™ of $379.55.
GuruFocus considers Charter Communications to be Possible Value Trap.
Key valuation signals for CHTR:
Altman Z2-Score: 0.27 (17% above median its 10-year median of 0.23)
GF Value™: $379.55 vs. price of $146.17 (61.5% below fair value)
Industry Position: 83.9% below the Telecommunication Services median (#262 of 363)
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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