Cable ONE (CABO) AI Stock Analysis

• Market Cap: $611.01M
• Dividend Yield: 10.11%
• Average Volume (3M): 159.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -4.94%
• EPS Growth: -335.70%
• Country: US
• Employees: 2,817
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -1.35
• Shares Outstanding: 5,672,182
• 10 Day Avg. Volume: 153,264
• 30 Day Avg. Volume: 159,814
• PEG Ratio: <0.01
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 2.29
• Enterprise Value/Market Cap: 5.98
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 32.50
• 1Y Price Target: $119.00
• Price Target Upside: 10.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 23.31
• Revenue Forecast (FY): $1.46B

• Rating: 47 Neutral
• Price Target: $106.00 ▼(-1.60% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

CABO scores low primarily due to the sharp 2025 profitability collapse and elevated leverage risk, compounded by a bearish technical setup (price below all key moving averages and negative MACD). The high dividend yield and ongoing positive free cash flow provide partial support, while the earnings call guidance and commentary remain mixed given ongoing revenue/subscriber declines and higher pro forma leverage from the planned MBI transaction.

Positive Factors

Recurring cash‑generative broadband model

Cable ONE's subscription-driven broadband and business service mix continued to generate positive operating and free cash flow in 2025. That durable cash generation supports reinvestment, dividend capacity, and discrete M&A funding without relying solely on equity markets, enhancing multi‑quarter financial flexibility.

In‑home product adoption and upsell

Rapid adoption of eero in‑home products (high sell‑in and >30% YoY uptake) creates a structural upsell and retention lever. Durable higher customer satisfaction and embedded hardware increase switching costs and lifetime value, supporting long‑term ARPU resilience despite market competition.

Scale and geographic diversification from MBI

Acquiring the remaining MBI stake materially increases scale, geographic diversification and passings, enabling cost synergies and wider wholesale/business market reach. Structural footprint expansion can improve long‑term unit economics and competitive positioning in rural and mid‑market broadband markets.

Negative Factors

Multi‑year revenue and subscriber declines

Persistent top‑line contraction and continued residential data subscriber losses signal structural demand and competitive pressure. Over multiple quarters, shrinking customer counts reduce scale leverage on fixed costs and constrain ARPU upside, limiting margin recovery and long‑term earnings visibility.

Profitability collapse in 2025

A material swing to net losses and negative operating earnings undermines sustainable earnings power. If margins and operating profits do not recover, the company faces tougher decisions on capex, dividends and M&A funding, and diminished ability to self‑fund strategic investments over the medium term.

Elevated and rising leverage

High and potentially rising post‑deal leverage materially reduces financial flexibility and increases refinancing and covenant risk. Greater interest and principal burden narrows cushion for cyclical stress and constrains discretionary investments, limiting strategic optionality over the next several quarters.

Cable ONE Business Overview & Revenue Model

Company Description

Cable One, Inc., together with its subsidiaries, provides data, video, and voice services in the United States. The company offers residential data services, a service to enhance Wi-Fi signal throughout the home. It also provides residential video services, such as local networks; local community programming that includes governmental and public access; and other channels, as well as digital video services, including national and regional cable networks, music channels, and an interactive and electronic programming guide with parental controls. In addition, the company offers premium channels that offer movies, original programming, live sporting events, and concerts and other features; and advanced video services, such as whole-home DVRs and high-definition set-top boxes, as well as TV Everywhere product, which enables its video customers to stream various channels and shows to mobile devices and computers. Further, it provides residential voice services comprising local and long-distance calling, voicemail, call waiting, three-way calling, caller ID, anonymous call rejection, and other features, as well as international calling by the minute services. Additionally, the company offers data, voice, and video products to business customers, including small to mid-markets, enterprises, and wholesale and carrier customers. As of December 31, 2021, it served approximately 1.2 million residential and business customers in 24 states through its Sparklight, Fidelity, and Clearwave brands. Cable One, Inc. was incorporated in 1980 and is headquartered in Phoenix, Arizona.

How the Company Makes Money

Cable ONE makes money primarily by charging recurring monthly subscription fees for connectivity services delivered over its network. The largest revenue stream is typically residential broadband internet service, where customers pay tiered monthly rates based on speed and service level; the company may also generate incremental revenue from equipment rentals (e.g., modems/routers), installation fees, and other customer premise-related charges. A second revenue stream comes from business services, where small-to-medium and enterprise customers pay monthly fees for data connectivity and related managed services; these arrangements can be priced based on bandwidth, service reliability, and contractual terms. Cable ONE also earns revenue from video services (pay-TV packages) and from voice/telephony offerings, generally through monthly service charges, though industry trends have pressured traditional pay-TV and voice over time. In addition, the company can generate advertising revenue tied to its video footprint and local market presence, and may receive other ancillary revenues (e.g., late fees or non-recurring service charges). Information on specific partnerships materially contributing to earnings is null.

Cable ONE Financial Statement Overview

Summary

Financial performance weakened materially: the income statement deteriorated sharply with a swing to a large net loss and negative operating earnings amid multi-year revenue contraction. Leverage remains elevated (roughly ~2.0–2.2x debt-to-equity) despite debt paydown, raising risk if profitability stays pressured. The main offset is that operating cash flow and free cash flow remained solidly positive in 2025, though both stepped down versus 2024 and debt coverage weakened.

Income Statement

Profitability deteriorated sharply in the most recent year (2025), with the company swinging from modest profit in 2024 to a large net loss and negative operating earnings, despite only a modest revenue decline. Revenue has been shrinking for several years (down again in 2023–2025 after growth in 2020–2022), signaling pressure on the top line. The key strength is that the business historically produced strong margins and earnings power in 2020–2023, but the latest year’s collapse meaningfully weakens the income statement profile.

Balance Sheet

Leverage is high, with debt running at roughly ~2.0–2.2x equity across the period, which limits flexibility if earnings remain pressured. Positively, debt declined in 2025 versus 2024 and equity remains substantial, but returns on equity turned negative in 2025 after being modest-to-healthy in prior years. Overall, the balance sheet is serviceable but carries elevated risk due to the heavy debt load paired with the recent loss.

Cash Flow

Cash generation remains a relative bright spot: operating cash flow and free cash flow stayed solidly positive in 2025 even while the company reported a net loss, indicating the business still produces cash. However, free cash flow fell materially versus 2024 (a steep negative growth rate), and cash flow covered only a moderate portion of debt in 2025 compared with much stronger coverage in 2022–2024. Strength is ongoing positive free cash flow; weakness is the sharp step-down in cash flow momentum and reduced debt coverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.50B	1.58B	1.68B	1.71B	1.61B
Gross Profit	770.77M	1.16B	1.24B	1.24B	1.15B
EBITDA	77.75M	723.93M	924.43M	849.87M	789.60M
Net Income	-356.46M	14.48M	224.62M	213.06M	291.82M
Balance Sheet
Total Assets	5.59B	6.53B	6.76B	6.89B	6.95B
Cash, Cash Equivalents and Short-Term Investments	152.77M	153.63M	190.29M	215.15M	388.80M
Total Debt	3.19B	3.60B	3.66B	3.82B	3.85B
Total Liabilities	4.15B	4.73B	4.95B	5.15B	5.16B
Stockholders Equity	1.43B	1.80B	1.81B	1.74B	1.79B
Cash Flow
Free Cash Flow	278.07M	377.77M	292.72M	327.30M	319.81M
Operating Cash Flow	563.33M	664.13M	663.17M	738.04M	704.34M
Investing Cash Flow	-154.18M	-564.45M	-341.90M	-448.27M	-2.47B
Financing Cash Flow	-410.01M	-136.34M	-346.13M	-463.43M	1.58B

Cable ONE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 107.72
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CABO, the sentiment is Negative. The current price of 107.72 is above the 20-day moving average (MA) of 105.30, above the 50-day MA of 98.33, and below the 200-day MA of 131.20, indicating a neutral trend. The MACD of 3.01 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 68.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CABO.

Cable ONE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIFY	62 Neutral	$977.16M	-60.25	-7.83%	―	5.81%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SHEN	52 Neutral	$815.70M	-16.17	-4.41%	0.97%	11.59%	-106.83%
GOGO	52 Neutral	$593.95M	48.21	13.13%	―	102.05%	-110.74%
CABO	47 Neutral	$611.01M	-1.79	-23.85%	10.11%	-4.94%	-335.70%

Cable ONE Corporate Events

Cable ONE Refinances 2026 Notes via Revolving Credit Facility

On March 12, 2026, Cable One, Inc. drew $575 million under its $1.25 billion revolving credit facility, a move that reflects its use of bank credit lines to manage balance sheet liquidity. On March 16, 2026, the company applied the full amount of those borrowings to repay at maturity its $575 million principal of 0.000% convertible senior notes due 2026, leaving $675 million of unfunded commitments available under the revolver.

The transaction effectively refinanced maturing convertible debt with revolving bank debt, shifting the company’s liability mix while avoiding a cash outlay beyond its credit facility usage. This maneuver may ease near-term refinancing pressure and preserve financial flexibility, though it increases reliance on the revolving credit facility as a key funding source.

The most recent analyst rating on (CABO) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on Cable ONE stock, see the CABO Stock Forecast page.

Cable One to fully acquire Mega Broadband Investments

On January 3, 2026, Cable One entered into a purchase agreement to acquire the roughly 55% of Mega Broadband Investments Holdings (MBI) it does not already own, after GTCR affiliates exercised a put option on January 2, 2026. MBI, which operates as Vyve Broadband and generated about $310 million in revenue in the 12 months to September 30, 2025, serves mainly rural communities in 16 states across the Southeast, Northwest and Mid-South, with around 210,000 data customers and 675,000 passings, and will give Cable One a larger, more geographically diversified footprint and potential scale efficiencies. The option price for the remaining stake is expected to be between $475 million and $495 million, with MBI expected to carry $845 million to $895 million of term-loan debt maturing in November 2027 when it becomes a wholly owned subsidiary, and Cable One plans to fund the purchase through a mix of cash and additional borrowings, targeting closing around October 1, 2026 subject to regulatory and other customary approvals. Separately, on December 20, 2025, Cable One agreed to roll its interest in joint venture Clearwave Fiber into Point Broadband Holdings in connection with Clearwave Fiber’s planned merger into a Point Broadband affiliate, a second-quarter 2026 deal that, following a pre-closing sale of Clearwave’s Southern Illinois assets, will leave Cable One as a minority common equity holder in the enlarged Point Broadband platform and further reshapes its portfolio of rural-focused broadband investments.

The most recent analyst rating on (CABO) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on Cable ONE stock, see the CABO Stock Forecast page.

Cable One Announces New CEO and Leadership Transition

On December 31, 2025, Cable One announced a major leadership transition, appointing veteran cable and broadband executive James A. Holanda as its next chief executive officer and board member, with his start date expected no later than March 31, 2026, following the retirement of long-serving leader Julia M. Laulis. To manage the handover, Chief Financial Officer Todd M. Koetje has been named interim CEO from January 1, 2026 until Holanda’s arrival, while director Mary E. Meduski has been elevated to independent chair of the board, maintaining her role in board governance. Holanda, who brings more than 35 years of industry experience from Astound Broadband, Choice Cable TV of Puerto Rico, Patriot Media, Charter Communications and Comcast, will receive a compensation package that includes a $1.4 million base salary, a target bonus equal to 150% of salary, a $10 million equity award mix of time- and performance-based RSUs, relocation assistance and a potential one-time payment to replace any forfeited 2025 bonus from his prior employer, subject to clawback if he departs within two years. The board characterized his selection as the outcome of a comprehensive search for a leader capable of driving growth and enhancing shareholder value, underscoring Cable One’s intent to strengthen its strategic and competitive position in a dynamic broadband market while preserving continuity in financial leadership and corporate governance during the transition period.

The most recent analyst rating on (CABO) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on Cable ONE stock, see the CABO Stock Forecast page.