Cable ONE (CABO) AI Stock Analysis

• Market Cap: $530.38M
• Dividend Yield: 10.11%
• Average Volume (3M): 147.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• 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: 5,635,177
• 10 Day Avg. Volume: 121,882
• 30 Day Avg. Volume: 147,989
• 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: 6.85
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 4.33
• Enterprise Value/Ebitda: -311.05
• 1Y Price Target: $111.00
• Price Target Upside: 22.11% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 24.97
• Revenue Forecast (FY): $1.45B

• Rating: 47 Neutral
• Price Target: $90.00 ▼(-0.99% 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

Free Cash Flow

Sustained positive free cash flow ($516.5M adj. EBITDA less CapEx in 2025) underpins the company's ability to fund network upgrades, pay down debt, support dividends and pursue M&A. Even with a step-down, ongoing cash generation provides durable optionality for strategic investments and liquidity management.

In‑home Product Adoption

Rapid adoption of the eero in‑home product (>30% YoY, sell‑in >80%) strengthens customer value proposition and reduces churn risk through better home Wi‑Fi performance. Higher attach rates support ARPU upside and durable differentiation vs basic connectivity-only rivals.

Scale & Geographic Diversification

Acquiring the remaining stake in MBI expands scale, diversifies footprint across new states and increases passings, enabling potential procurement and operating synergies. The structural gain in scale supports long‑term margin improvement and cross‑sell opportunities in rural/mid‑market segments.

Negative Factors

Profitability Decline

A swing to a sizable net loss in 2025 amid ongoing revenue declines signals weakening core economics. Persistent subscriber losses and shrinking top line threaten margin sustainability and the company's ability to restore prior earnings power without sustained subscriber or ARPU recovery.

Elevated Leverage

Pro forma leverage rising to ~4x after the MBI deal materially increases interest, covenant and refinancing risk, reducing financial flexibility. Higher debt constrains capital allocation, raises sensitivity to cash flow swings, and magnifies execution risk during integration cycles.

Structural Competition

Widespread fixed wireless and FTTH overbuilds (≈60% of passings facing gig‑capable wired competition) impose durable pricing and retention pressure. Structural competitive intensity limits customer acquisition, compresses margins and forces ongoing capex and marketing spend to defend share.

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 generates revenue primarily through subscription services, which include residential and business broadband internet access, cable television packages, and voice services. The company's internet services are a significant revenue driver, as demand for high-speed connectivity has surged. Cable ONE also earns income from advertising through its cable television offerings and may engage in partnerships with local content providers to enhance its service offerings. Additionally, the company benefits from customer retention strategies, including bundled service packages that encourage long-term subscriptions, thus contributing to its overall earnings.

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	0.00	1.16B	1.24B	1.24B	1.15B
EBITDA	-6.46M	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: 90.90
• 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 CABO, the sentiment is Negative. The current price of 90.9 is below the 20-day moving average (MA) of 99.26, below the 50-day MA of 101.96, and below the 200-day MA of 134.16, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 18.01 is Positive, 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	$1.18B	―	―	―	5.81%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GOGO	56 Neutral	$602.34M	-87.67	-6.63%	―	102.05%	-110.74%
SHEN	52 Neutral	$736.73M	-18.63	-4.41%	0.97%	11.59%	-106.83%
CABO	47 Neutral	$530.38M	-1.12	-27.38%	10.11%	-4.94%	-335.70%

Cable ONE Corporate Events

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.