Cable ONE (CABO) AI Stock Analysis

• Market Cap: $876.77M
• Dividend Yield: 7.44%
• Average Volume (3M): 103.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -5.43%
• EPS Growth: -363.95%
• Country: US
• Employees: 2,817
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -77.70
• Shares Outstanding: 5,628,990
• 10 Day Avg. Volume: 84,562
• 30 Day Avg. Volume: 103,615
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.69
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 3.62
• Enterprise Value/Ebitda: 99.49
• 1Y Price Target: $298.00
• Price Target Upside: 78.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $155.00 ▼(-7.04% Downside)

Cable ONE's overall stock score reflects significant financial and operational challenges, particularly in revenue and profitability. While there are strategic initiatives underway that may improve future performance, current technical indicators and valuation metrics suggest caution. The high dividend yield is a positive aspect, but the negative P/E ratio and bearish technical signals weigh heavily on the score.

Positive Factors

Cash Flow Growth

Strong cash flow growth indicates effective cash management and provides the company with the flexibility to invest in strategic initiatives and manage debt.

Billing System Migration

The successful migration to a new billing system can lead to cost savings and improved customer engagement, enhancing long-term operational efficiency.

Mobile Service Pilot Launch

Launching a mobile service pilot can diversify revenue streams and strengthen customer retention, positioning the company for future growth in telecommunications.

Negative Factors

High Leverage

High leverage poses financial risks, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Residential Customer Losses

Loss of residential customers reflects competitive pressures and could impact future revenue, necessitating strategic adjustments to regain market share.

Revenue Decline

A decline in revenue indicates challenges in maintaining market position and could hinder the company's ability to fund new initiatives or pay down debt.

Cable ONE Business Overview & Revenue Model

Company Description

Cable ONE, Inc. (traded as CABO) is a leading telecommunications provider based in the United States, primarily serving rural and suburban markets. The company offers a range of services, including high-speed internet, digital television, and voice services through its cable and fiber-optic networks. Cable ONE operates under various brand names, delivering reliable connectivity and entertainment solutions to its customers, with a strong focus on enhancing the user experience through innovative technology and customer service.

How the Company Makes Money

Cable ONE generates revenue primarily through subscription fees for its internet, television, and voice services. The company's key revenue streams include residential broadband internet services, which are increasingly in demand due to the growing need for high-speed connectivity, and digital television services, which provide customers with a wide range of channels and on-demand content. Additionally, Cable ONE earns revenue from business services, targeting small to medium-sized enterprises with tailored communication solutions. The company may also engage in partnerships with content providers and technology firms to enhance its service offerings, driving additional revenue through bundled services and promotional packages. Overall, Cable ONE's revenue model is centered on its ability to attract and retain subscribers while continuously expanding its service capabilities in underserved markets.

Cable ONE Financial Statement Overview

Summary

Cable ONE faces significant financial challenges, particularly in revenue and profitability, as reflected in the income statement. The balance sheet indicates high leverage, posing potential risks. However, the cash flow statement shows some resilience with positive cash flow growth, suggesting potential for recovery if profitability issues are addressed.

Income Statement

Cable ONE's income statement shows a concerning trend with declining revenue and profitability. The TTM data reveals a significant revenue drop of 8.61% and a negative net profit margin of -28.46%, indicating substantial losses. The EBIT margin has also turned negative, reflecting operational challenges. Despite past profitability, the current trajectory suggests financial instability.

Balance Sheet

The balance sheet highlights a high debt-to-equity ratio of 2.60 in the TTM period, indicating significant leverage and potential financial risk. The return on equity has turned negative, further emphasizing profitability challenges. However, the equity ratio remains stable, suggesting a balanced asset structure despite high debt levels.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 27.23% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is strong, suggesting efficient cash management. However, the high free cash flow to net income ratio reflects the company's struggle with profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.54B	1.58B	1.68B	1.71B	1.61B	1.33B
Gross Profit	1.14B	1.16B	1.24B	1.24B	1.15B	906.52M
EBITDA	41.34M	723.93M	924.43M	888.02M	814.23M	655.26M
Net Income	-439.00M	14.48M	224.62M	234.12M	291.82M	304.39M
Balance Sheet
Total Assets	5.77B	6.53B	6.76B	6.91B	6.95B	4.49B
Cash, Cash Equivalents and Short-Term Investments	152.88M	153.63M	190.29M	215.15M	388.80M	574.91M
Total Debt	3.48B	3.60B	3.66B	3.81B	3.84B	2.18B
Total Liabilities	4.44B	4.73B	4.95B	5.16B	5.16B	2.99B
Stockholders Equity	1.34B	1.80B	1.81B	1.76B	1.79B	1.50B
Cash Flow
Free Cash Flow	604.52M	377.77M	292.72M	327.30M	319.81M	270.44M
Operating Cash Flow	605.10M	664.13M	663.17M	738.04M	704.34M	574.37M
Investing Cash Flow	-532.30M	-564.45M	-341.90M	-448.27M	-2.47B	-954.91M
Financing Cash Flow	-121.45M	-136.34M	-346.13M	-463.43M	1.58B	830.18M

Cable ONE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 166.73
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 166.73 is above the 20-day moving average (MA) of 166.17, above the 50-day MA of 164.03, and below the 200-day MA of 202.05, indicating a bearish trend. The MACD of -1.29 indicates Positive momentum. The RSI at 45.74 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 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	61 Neutral	$893.53M	―	―	―	10.20%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GOGO	58 Neutral	$1.25B	215.40	9.39%	―	72.74%	-90.17%
SHEN	51 Neutral	$698.84M	-19.49	-3.93%	0.78%	16.73%	-237.78%
CABO	48 Neutral	$876.77M	-1.80	-30.85%	7.44%	-5.43%	-363.95%
WOW	47 Neutral	$442.26M	-6.54	-30.99%	―	-8.67%	63.35%
ATUS	41 Neutral	$1.04B	-3.75	―	―	-3.82%	-363.28%

Cable ONE Corporate Events

Cable ONE, Inc. Faces Leadership Transition: Navigating CEO Retirement and Its Impact on Future Stability

Cable ONE, Inc. faces a significant business risk due to the impending retirement of their current CEO by the end of 2025, necessitating a crucial transition to new leadership. The Board is collaborating with a global executive search firm to identify a successor with the necessary industry expertise, a process that may be both challenging and time-consuming. This transition period could lead to shifts in business strategies and operations, potentially impacting the company’s financial condition and operational results. The ability to effectively manage this leadership change is vital for maintaining stability and achieving future success.

Cable ONE’s Earnings Call: Mixed Results and Strategic Moves

Cable ONE, Inc.’s recent earnings call presented a mixed bag of results, reflecting both growth and challenges. While the company reported some positive developments such as an increase in residential broadband revenue and the completion of strategic initiatives, it also faced significant hurdles including a decline in total revenue and residential broadband customer losses. The sentiment during the call was cautiously optimistic, with a focus on long-term growth despite current difficulties.

Cable One Reports Q2 2025 Financial Results

Cable One, Inc., a prominent broadband communications provider, offers services to over a million residential and business customers across 24 states, focusing on innovation and reliability. In its second quarter of 2025 earnings report, Cable One reported a decline in revenues to $381.1 million, down 3.4% from the previous year, primarily due to a decrease in residential video revenues. The company also faced a significant net loss of $438 million, largely attributed to non-cash asset impairment charges. Despite these challenges, Cable One saw a modest increase in residential data revenue on a sequential quarterly basis and continued growth in its business data segment. The company repaid $70.8 million of debt, maintaining a strong liquidity position with $1.02 billion of committed excess liquidity. Looking ahead, Cable One remains focused on enhancing customer response and operational performance through simplified pricing and value-enhancing offerings, aiming for a stronger financial outlook in the future.