Cable ONE, Inc (CABO)
NYSE:CABO
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Cable ONE
(NYSE:CABO)
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Rating:47Neutral
Price Target:
$106.00
▲(16.60% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Cable ONE (CABO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$515.66M
Dividend Yield10.11%
Average Volume (3M)148.71K
Price to Earnings (P/E)―
Beta (1Y)0.33
Revenue Growth-4.94%
EPS Growth-335.70%
CountryUS
Employees2,817
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-1.35
Shares Outstanding5,672,182
10 Day Avg. Volume88,593
30 Day Avg. Volume148,712
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.44
Price to Sales (P/S)0.42
P/FCF Ratio2.29
Enterprise Value/Market Cap6.92
Enterprise Value/Revenue2.38
Enterprise Value/Gross Profit4.63
Enterprise Value/Ebitda31.76
Forecast
1Y Price Target
$111.75Price Target Upside22.92% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering5
EPS Forecast (FY)23.27
Revenue Forecast (FY)$1.46B
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...
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 monthl...
Cable ONE Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: financial and subscriber metrics deteriorated (revenue down ~6% Q4, adjusted EBITDA and free cash flow down YoY, and continued subscriber losses), reflecting competitive headwinds from fixed wireless and fiber overbuilds. Offsetting these negatives, management highlighted operational progress (sequentially improving connects, improved disconnect trends), solid network capacity, strong adoption of in-home products (eero >30% YoY growth; sell-in >80%), a live mobile pilot with planned rollout, business services momentum, disciplined debt paydown ($403M) and ample liquidity (undrawn $1.25B revolver). Management emphasized the foundational investments completed (billing/platform modernization, go-to-market playbooks) and a clear execution focus, while acknowledging ongoing execution risk and near-term margin pressure from investments and competition.Positive Updates
Improving Subscriber Trends and Retention Efforts
Net subscriber trends improved in Q4 (residential data customers declined ~10,700 in Q4 but disconnects improved significantly vs Q3); gross connect activity improved sequentially through the first 3 quarters of 2025 and meaningfully year-over-year in Q4. Management reports January 2026 continued improvement vs prior periods.
Negative Updates
Revenue Declines
Total Q4 2025 revenues were $363.7M vs $387.2M in Q4 2024, a decline of 6.1% YoY. Full-year 2025 revenues were ~$1.50B vs $1.58B in 2024, reflecting declines including a $35M decrease attributable to residential video.
Read all updates
Q4-2025 Updates
Positive
Negative
Improving Subscriber Trends and Retention Efforts
Net subscriber trends improved in Q4 (residential data customers declined ~10,700 in Q4 but disconnects improved significantly vs Q3); gross connect activity improved sequentially through the first 3 quarters of 2025 and meaningfully year-over-year in Q4. Management reports January 2026 continued improvement vs prior periods.
Read all positive updates
Company Guidance
The company reiterated several specific near-term expectations: 2026 capital expenditures are expected to remain substantially consistent with 2025 levels (2025 CapEx $285.3 million, including $32.8 million for new market expansion and $10.3 million for integration), and cash income taxes for 2026 are expected to be roughly $40–$50 million with anticipated cash tax savings of about $120 million through 2027 from 2025 legislation. Cable One expects to close the MBI acquisition October 1 (estimated purchase price ≈ $480 million; MBI 2025 revenue $308.9 million, ~206,000 customers, ~674,000 passings; expected MBI net indebtedness $845–$895 million) producing a pro forma combined leverage a little above 4x (current net leverage ~3.9x). Other operational guidance/targets: broader mobile launch company‑wide in late Q1 (pilot in 6 markets), aim to complete multi‑gig DOCSIS upgrades this year (>50% of plant already multi‑gig capable; ~10% FTTH), and preserve strong free‑cash‑flow generation (2025 adj. EBITDA $801.7M, adj. EBITDA less CapEx $516.5M).Cable ONE Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
45
Neutral
Cash Flow
62
Positive
| 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
Negative
90.91
Price Trends
99.06
Negative
104.73
Negative
127.84
Negative
Market Momentum
-2.74
Positive
42.18
Neutral
47.83
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 90.91 is below the 20-day moving average (MA) of 98.25, below the 50-day MA of 99.06, and below the 200-day MA of 127.84, indicating a bearish trend. The MACD of -2.74 indicates Positive momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CABO.
Cable ONE Risk Analysis
Cable ONE disclosed 37 risk factors in its most recent earnings report. Cable ONE reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cable ONE Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $996.66M | -60.25 | -7.83% | ― | 5.81% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $797.45M | -16.17 | -4.06% | 0.97% | 11.59% | -106.83% | |
52 Neutral | $564.32M | 48.21 | 13.13% | ― | 102.05% | -110.74% | |
47 Neutral | $515.66M | -1.79 | -23.85% | 10.11% | -4.94% | -335.70% |
* Communication Services Sector Average
CABO
Cable ONE
90.91
-169.15
-65.04%
SHEN
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14.42
2.04
16.51%
SIFY
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13.80
9.84
248.48%
GOGO
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4.19
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-41.07%
Cable ONE Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Cable ONE Refinances 2026 Notes via Revolving Credit Facility
Neutral
Mar 16, 2026
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 ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Cable One to fully acquire Mega Broadband Investments
Positive
Jan 5, 2026
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 a...
Business Operations and StrategyExecutive/Board Changes
Cable One Announces New CEO and Leadership Transition
Positive
Dec 31, 2025
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, 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.