Altice Usa (ATUS) AI Stock Analysis

• Market Cap: $988.84M
• Dividend Yield: N/A
• Average Volume (3M): 3.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -3.82%
• EPS Growth: -363.28%
• Country: US
• Employees: 10,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.21
• Shares Outstanding: 284,420,960
• 10 Day Avg. Volume: 3,060,166
• 30 Day Avg. Volume: 3,831,510
• 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: 26.60
• Enterprise Value/Revenue: 3.00
• Enterprise Value/Gross Profit: 4.71
• Enterprise Value/Ebitda: 8.55
• 1Y Price Target: $2.72
• Price Target Upside: 28.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 39 Underperform
• Price Target: $2.00 ▼(-5.21% Downside)

Altice USA's overall stock score is primarily impacted by its weak financial performance and valuation metrics. The company faces significant financial challenges, including declining revenue, high leverage, and negative equity. Technical analysis indicates bearish momentum, further contributing to the low score. While the earnings call highlighted some operational improvements, these were not sufficient to offset the broader financial and technical weaknesses.

Positive Factors

Fiber Network Expansion

The expansion of the fiber network enhances Altice USA's infrastructure, potentially increasing customer retention and attracting new subscribers, which can drive long-term revenue growth.

Innovative Financing

Innovative financing strategies improve liquidity and financial flexibility, allowing Altice USA to invest in growth initiatives and manage debt more effectively over the long term.

IP License Agreement

The IP license agreement with Adeia enhances Altice USA's service offerings, supporting advanced content features and improving customer experience, which can strengthen competitive positioning.

Negative Factors

Declining Revenue

A decline in revenue indicates challenges in maintaining market share and customer base, which could affect long-term growth and profitability if not addressed.

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting the company's ability to invest in growth initiatives or weather economic downturns.

Negative Equity

Negative equity reflects financial instability, posing risks to investor confidence and limiting the company's ability to raise capital or pursue strategic opportunities.

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, with declining revenue and negative net income impacting profitability. The high leverage and negative equity raise concerns about financial stability, while the negative free cash flow trajectory indicates cash generation issues.

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	8.76B	8.95B	9.24B	9.24B	9.65B	9.65B
Gross Profit	5.59B	6.06B	6.21B	6.21B	6.44B	6.44B
EBITDA	3.08B	3.32B	3.40B	3.40B	3.62B	3.62B
Net Income	-269.01M	-102.92M	53.20M	53.20M	194.56M	194.56M
Balance Sheet
Total Assets	31.62B	31.70B	31.92B	31.92B	33.66B	33.66B
Cash, Cash Equivalents and Short-Term Investments	247.29M	256.53M	302.06M	302.06M	305.48M	305.48M
Total Debt	25.55B	25.31B	25.39B	25.39B	26.85B	26.85B
Total Liabilities	32.24B	32.16B	32.36B	32.36B	34.17B	34.17B
Stockholders Equity	-624.12M	-469.24M	-422.18M	-422.18M	-475.21M	-475.21M
Cash Flow
Free Cash Flow	370.07M	149.39M	121.59M	121.59M	452.62M	452.62M
Operating Cash Flow	1.48B	1.58B	1.83B	1.83B	2.37B	2.37B
Investing Cash Flow	-1.54B	-1.46B	-1.71B	-1.71B	-1.92B	-1.92B
Financing Cash Flow	-49.85M	-171.98M	-122.59M	-122.59M	-335.91M	-335.91M

Altice Usa Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATUS, the sentiment is Negative. The current price of 2.11 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 2.41, and below the 200-day MA of 2.49, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 35.34 is Neutral, neither overbought nor oversold. The STOCH value of 12.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATUS.

Altice Usa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	―	$105.34B	4.84	25.44%	4.56%	2.54%	60.53%
CHTR	―	$36.82B	6.57	36.19%	―	1.03%	17.05%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LUMN	―	$11.29B	―	―	―	-6.50%	43.47%
CABO	―	$916.62M	―	-30.85%	7.25%	-5.43%	-363.95%
WOW	―	$439.69M	―	-30.99%	―	-8.67%	63.35%
ATUS	―	$988.84M	―	―	―	-3.82%	-363.28%

Altice Usa Corporate Events

Altice USA Earnings Call: Growth Amidst Challenges

During Altice USA’s latest earnings call, the sentiment was a mix of optimism and caution. The company highlighted significant improvements in broadband subscriber trends and network recognition, alongside successful debt management strategies. However, these positives were tempered by declines in overall revenue and challenges in operational costs. Altice USA is strategically investing to drive future growth while navigating market headwinds.