Altice Usa (ATUS) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: N/A
• Average Volume (3M): 3.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -3.82%
• EPS Growth: -363.28%
• Country: US
• Employees: 10,900
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): -0.21
• Shares Outstanding: 284,420,960
• 10 Day Avg. Volume: 2,813,976
• 30 Day Avg. Volume: 3,944,374
• PEG Ratio: 0.04
• Price to Book (P/B): -2.37
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 7.45
• Enterprise Value/Market Cap: 23.58
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: 10.79
• 1Y Price Target: $2.81
• Price Target Upside: 16.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 42 Neutral
• Price Target: $2.50 ▲(3.31% Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenue and high leverage. Technical indicators suggest weak momentum, and valuation metrics are unattractive due to negative earnings. Despite some operational improvements highlighted in the earnings call, the overall outlook remains cautious.

Positive Factors

Financial flexibility

The incremental capital raise could enhance financial flexibility for additional investments and/or open the door for Lightpath to distribute cash back to its equity owners, which could be perceived as a positive.

Operational improvements

Management remains focused on executing on its refreshed go-to-market strategies and targeted promotions that should help performance.

Negative Factors

Competitive pressure

The overall broadband and mobile markets remain intensely competitive, with churn improvement benefits dampened by a soft macro and low household mobility.

Execution risk

ATUS has significant execution risk due to still growing broadband competition from fiber operators and fixed wireless access providers.

Altice Usa Business Overview & Revenue Model

Company Description

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company's video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York.

How the Company Makes Money

Altice USA generates revenue through several key streams, primarily from subscription services such as high-speed internet, cable television, and voice services. The company's residential segment contributes the majority of its revenue, driven by consumer demand for bundled services that include internet, TV, and phone. Additionally, Altice USA earns revenue from its business services division, which offers tailored solutions to small and medium-sized businesses, including high-speed internet and telecommunication services. Advertising revenue also plays a crucial role, as the company monetizes its media assets and partnerships. Significant partnerships with content providers and technology companies further enhance its service offerings, helping to attract and retain customers while driving revenue growth.

Altice Usa Financial Statement Overview

Summary

Altice USA is facing significant financial challenges, including declining revenue, negative net income, and high leverage with negative equity. The negative free cash flow trajectory further exacerbates the situation, indicating issues in cash generation and financial stability.

Income Statement

The company's revenue has been declining over the years, with a TTM revenue decrease of approximately 4.1% compared to the previous year. The gross profit margin stands at 68.1% for the TTM, which is solid but offset by a negative net profit margin of -1.78%, indicating profitability challenges. The EBITDA margin remains strong at 27.5%, suggesting potential operational efficiencies.

Balance Sheet

The company has a very high debt-to-equity ratio due to negative equity, indicating financial instability and potential solvency risks. The equity ratio is negative, reflecting the company's high leverage and reliance on debt financing.

Cash Flow

The company has experienced a decline in free cash flow, showing a negative free cash flow in the TTM period. The operating cash flow to net income ratio is high due to negative net income, but the company's ability to generate cash remains a concern given the declining free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	8.86B	8.95B	9.24B	9.24B	9.65B	9.65B
Gross Profit	6.03B	6.06B	6.21B	6.21B	6.44B	6.44B
EBITDA	2.44B	3.32B	3.40B	3.40B	3.62B	3.62B
Net Income	-157.40M	-102.92M	53.20M	53.20M	194.56M	194.56M
Balance Sheet
Total Assets	31.68B	31.70B	31.92B	31.92B	33.66B	33.66B
Cash, Cash Equivalents and Short-Term Investments	279.14M	256.53M	302.06M	302.06M	305.48M	305.48M
Total Debt	25.56B	25.31B	25.39B	25.39B	26.85B	26.85B
Total Liabilities	32.21B	32.16B	32.36B	32.36B	34.17B	34.17B
Stockholders Equity	-543.00M	-469.24M	-422.18M	-422.18M	-475.21M	-475.21M
Cash Flow
Free Cash Flow	-82.82M	149.39M	121.59M	121.59M	452.62M	452.62M
Operating Cash Flow	1.37B	1.58B	1.83B	1.83B	2.37B	2.37B
Investing Cash Flow	-1.48B	-1.46B	-1.71B	-1.71B	-1.92B	-1.92B
Financing Cash Flow	107.63M	-171.98M	-122.59M	-122.59M	-335.91M	-335.91M

Altice Usa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATUS, the sentiment is Positive. The current price of 2.42 is above the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.40, and below the 200-day MA of 2.51, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATUS.

Altice Usa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	75 Outperform	$124.35B	5.62	25.44%	3.79%	2.54%	60.53%
VEON	70 Outperform	$3.90B	3.97	89.94%	―	8.66%	―
CHTR	68 Neutral	$40.65B	7.26	36.19%	―	1.03%	17.05%
Sector *	60 Neutral	$43.56B	4.52	-13.01%	4.07%	1.87%	-43.08%
CABO	55 Neutral	$885.21M	59.21	-30.85%	7.50%	-5.43%	-363.95%
TDS	55 Neutral	$4.17B	―	-0.81%	0.41%	-5.62%	80.09%
ATUS	42 Neutral	$1.12B	―	21.93%	―	-3.82%	-363.28%

Altice Usa Corporate Events

Altice USA Secures $1 Billion Loan Agreement

On July 16, 2025, Cablevision Funding LLC, a subsidiary of Altice USA, entered into a Receivables Facility Loan and Security Agreement with Goldman Sachs Bank USA and TPG Angelo Gordon, securing a $1,000 million loan. This agreement, backed by assets in the Bronx and Brooklyn, aims to finance working capital, prepay debts, and cover transaction costs, potentially impacting Altice USA’s financial operations and market positioning.

Altice USA Holds Annual Stockholders Meeting with Key Decisions

On June 11, 2025, Altice USA, Inc. held its Annual Meeting of Stockholders, where key proposals were voted on by Class A and Class B stockholders. The meeting resulted in the election of board members, the ratification of KPMG LLP as the independent accounting firm, and the approval of executive compensation and related voting frequency. Additionally, the Fourth Amended and Restated Certificate of Incorporation was approved, indicating a structured approach to governance and financial oversight.