Cable ONE (CABO) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: 4.5%
• Average Volume (3M): 125.13K
• Price to Earnings (P/E): 101.7
• Beta (1Y): 0.76
• Revenue Growth: -5.87%
• EPS Growth: -93.49%
• Country: US
• Employees: 2,817
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 1.91
• Shares Outstanding: 5,627,527
• 10 Day Avg. Volume: 103,116
• 30 Day Avg. Volume: 125,126
• PEG Ratio: 0.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.73
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $336.33
• Price Target Upside: 120.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Cable ONE's overall stock score reflects a challenging environment with mixed financial performance and weak technical indicators. While the company is taking steps to improve growth and manage debt, current declines in revenue and profitability are notable concerns. The stock appears overvalued, and the suspension of dividends adds to investor uncertainty.

Positive Factors

Broadband Revenue Growth

Management remains confident in growth for broadband top line revenue and subscribers for the year.

Operational Investments

CABO is in the later stages of its opex investments that should continue to bolster subscriber stabilization and EBITDA uplift when complete.

Subscriber Stabilization

CABO introduced a unique Pay-As-You-Go (PAYG) pilot program to fight FWA competition, targeting value-seeking customers and does not expect ARPU dilution.

Negative Factors

Competitive Pressure

Ramping fiber overlap and persisting FWA pressure are expected to weigh on the gross add funnel and limit CABO’s long-term broadband penetration.

Dividend Elimination

The strategic decision to completely eliminate its dividend with no warning and no new financial change or justification has led to a downgrade of Cable One's stock rating.

Market Competition

Cable One’s markets continue to get more competitive as fixed wireless and fiber availability expand.

Cable ONE Business Overview & Revenue Model

Company Description

Cable ONE, Inc. (CABO) is a leading American broadband communications provider, primarily serving residential and business customers in the United States. The company offers a suite of services including high-speed internet, cable television, and voice services. Operating under the Sparklight brand, Cable ONE focuses on providing reliable connectivity solutions to its customers, with an emphasis on high-speed internet as a core service.

How the Company Makes Money

Cable ONE makes money through subscription-based services offered to residential and business customers. Its primary revenue stream is from high-speed internet services, which account for a significant portion of its earnings. The company also generates revenue from cable television and voice services, although these segments have been declining as the industry shifts towards internet-based solutions. Additionally, Cable ONE benefits from business services, which include broadband, telephone, and cloud-based services tailored for commercial clients. The company may also earn from advertising and other ancillary services. Partnerships with content providers and investments in infrastructure contribute to maintaining and enhancing its revenue streams.

Cable ONE Financial Statement Overview

Summary

Cable ONE demonstrates strong operational efficiency with high gross profit margins and robust cash flow generation. However, declining revenue and net profit margins, alongside moderate leverage, suggest challenges in maintaining growth and profitability. Strategic improvements in revenue growth and cost management could enhance their financial health further.

Income Statement

The income statement reflects a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin stands at approximately 74.6%, indicating strong profitability in core operations. However, the net profit margin is much lower at around 3.0%, suggesting significant expenses or non-operating losses impacting net income. Revenue has declined over recent periods, dropping from $1.68 billion in 2023 to $1.56 billion in 2025, marking a negative growth trajectory.

Balance Sheet

The balance sheet shows a stable financial structure with a debt-to-equity ratio of approximately 2.0, indicating moderate leverage. The equity ratio is about 27.6%, reflecting a reasonable level of equity financing. However, the return on equity has decreased significantly, indicating inefficiency in generating profits from shareholders’ equity.

Cash Flow

Cash flow analysis indicates a strong operational cash flow with an operating cash flow to net income ratio of 13.2 in the TTM (Trailing-Twelve-Months), showcasing effective cash generation from operations. Free cash flow has grown substantially from $292 million in 2023 to $475 million in the TTM, suggesting improved cash management. However, free cash flow to net income is relatively high, which might imply underinvestment in capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.58B	1.68B	1.71B	1.61B	1.33B
	Gross Profit
1.16B	1.24B	1.24B	1.15B	906.52M
	EBIT
441.88M	526.90M	538.99M	456.57M	369.29M
	EBITDA
723.93M	924.43M	888.02M	814.23M	655.26M
	Net Income Common Stockholders
14.48M	224.62M	234.12M	291.82M	304.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
153.63M	190.29M	215.15M	388.80M	574.91M
	Total Assets
6.53B	6.76B	6.91B	6.95B	4.49B
	Total Debt
3.60B	3.66B	3.81B	3.84B	2.18B
	Net Debt
3.44B	3.47B	3.59B	3.45B	1.60B
	Total Liabilities
4.73B	4.95B	5.16B	5.16B	2.99B
	Stockholders Equity
1.80B	1.81B	1.76B	1.79B	1.50B
Cash Flow		Free Cash Flow
377.77M	292.72M	327.30M	319.81M	270.44M
	Operating Cash Flow
664.13M	663.17M	738.04M	704.34M	574.37M
	Investing Cash Flow
-564.45M	-341.90M	-448.27M	-2.47B	-954.91M
	Financing Cash Flow
-136.34M	-346.13M	-463.43M	1.58B	830.18M

Cable ONE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 152.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 152.51 is below the 20-day moving average (MA) of 254.15, below the 50-day MA of 259.30, and below the 200-day MA of 328.32, indicating a bearish trend. The MACD of -8.35 indicates Positive momentum. The RSI at 19.93 is Positive, neither overbought nor oversold. The STOCH value of 38.17 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
Sector *	59 Neutral	$13.76B	7.64	-1.94%	3.86%	2.38%	-36.56%
CABO	58 Neutral	$1.47B	101.71	0.80%	4.50%	-5.87%	-93.49%
SHEN	52 Neutral	$657.19M	―	-4.05%	0.87%	14.16%	-443.30%
ATUS	52 Neutral	$1.07B	―	21.93%	―	-3.06%	-290.86%
LILA	50 Neutral	$1.06B	―	-45.55%	―	-1.31%	-1163.93%
WOW	46 Neutral	$382.76M	―	-25.18%	―	-8.13%	79.68%
LILAK	45 Neutral	$1.06B	―	-45.55%	―	-1.31%	-1163.93%

Cable ONE Corporate Events

Cable ONE Amends Partnership to Acquire MBI Stake

Cable One has amended its strategic partnership agreement with Mega Broadband Investments Holdings LLC (MBI) to enhance timing flexibility for potentially acquiring full ownership of MBI. The amended agreement includes a $250 million cash payment and access to $100 million in new debt proceeds by MBI unit holders, thereby adjusting the purchase price for Cable One’s future acquisition of the remaining 55% interest it does not own. The company’s strategic investment in MBI supports its mission to deliver broadband services in rural America, with the partnership expected to optimize Cable One’s capital structure and strengthen its market position.