Cable ONE (CABO) AI Stock Analysis

• Market Cap: $773.03M
• Dividend Yield: 8.59%
• Average Volume (3M): 218.46K
• Price to Earnings (P/E): 59.2
• Beta (1Y): 0.40
• Revenue Growth: -6.30%
• EPS Growth: -109.90%
• Country: US
• Employees: 2,817
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 0.46
• Shares Outstanding: 5,627,768
• 10 Day Avg. Volume: 189,276
• 30 Day Avg. Volume: 218,455
• PEG Ratio: -0.99
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.81
• Enterprise Value/Market Cap: 10.07
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 2.53
• 1Y Price Target: $250.25
• Price Target Upside: 82.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 56 Neutral
• Price Target: $150.00 ▲(9.20%Upside)

Cable ONE's overall stock score is driven by strong operational efficiency but offset by bearish technical indicators, valuation challenges, and mixed earnings call outcomes. Significant declines in revenue and profitability, coupled with strategic efforts to reduce debt, shape a cautious outlook.

Positive Factors

Broadband ARPU growth

Management is confident in 2025 Broadband ARPU growth driven by promo roll-offs, the remaining autopay discount reduction, and gross add sell ins.

Free Cash Flow

Cable One posted modest downside 4Q24 revenue/EBITDA, upside FCF, encouragingly stabilized its Broadband ARPU, but delivered downside Broadband sub losses.

Value proposition

Management remains confident that FWA competition has largely matured and Sparklight PAYG plans are a better value proposition.

Negative Factors

Broadband subscriber growth

There is skepticism about Cable ONE's ability to achieve broadband subscriber growth in the near-to-medium term due to competitive pressures.

Competitive pressures

Cable ONE's markets are becoming more competitive as fixed wireless and fiber availability expand, which may pressure revenue and growth.

Dividend suspension

The company’s decision to suspend the dividend was surprising and has contributed to a notable drop in share price.

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 through its subscription-based services, which include high-speed internet, cable television, and telephone services. The company generates the majority of its revenue from residential customers who pay recurring monthly fees. High-speed internet services are the largest revenue stream, accounting for a significant portion of the company's income. Additionally, Cable ONE earns revenue from business services by providing internet and connectivity solutions to small and medium-sized businesses. The company also benefits from advertising sales, although this constitutes a smaller portion of its overall revenue. Cable ONE's strategic focus on expanding broadband services and increasing internet penetration in less densely populated areas contributes to its earnings growth.

Cable ONE Financial Statement Overview

Summary

Cable ONE exhibits 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.56B	1.58B	1.68B	1.71B	1.61B	1.33B
Gross Profit	1.16B	1.16B	1.24B	1.24B	1.15B	906.52M
EBITDA	659.31M	723.93M	924.43M	888.02M	814.23M	655.26M
Net Income	46.63M	14.48M	224.62M	234.12M	291.82M	304.39M
Balance Sheet
Total Assets	6.42B	6.53B	6.76B	6.91B	6.95B	4.49B
Cash, Cash Equivalents and Short-Term Investments	149.09M	153.63M	190.29M	215.15M	388.80M	574.91M
Total Debt	3.55B	3.60B	3.66B	3.81B	3.84B	2.18B
Total Liabilities	4.65B	4.73B	4.95B	5.16B	5.16B	2.99B
Stockholders Equity	1.78B	1.80B	1.81B	1.76B	1.79B	1.50B
Cash Flow
Free Cash Flow	475.16M	377.77M	292.72M	327.30M	319.81M	270.44M
Operating Cash Flow	615.71M	664.13M	663.17M	738.04M	704.34M	574.37M
Investing Cash Flow	-551.03M	-564.45M	-341.90M	-448.27M	-2.47B	-954.91M
Financing Cash Flow	-126.33M	-136.34M	-346.13M	-463.43M	1.58B	830.18M

Cable ONE Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 137.36
• 50DMA: Negative
• 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 Neutral. The current price of 137.36 is above the 20-day moving average (MA) of 133.29, below the 50-day MA of 163.33, and below the 200-day MA of 284.03, indicating a neutral trend. The MACD of -6.96 indicates Negative momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CABO.

Cable ONE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHEN	64 Neutral	$791.04M	―	-4.30%	0.69%	21.68%	-1010.29%
Sector *	61 Neutral	$41.26B	-0.79	-14.19%	3.78%	2.39%	-73.52%
LILA	57 Neutral	$1.31B	―	-57.56%	―	-1.56%	-10914.21%
CABO	56 Neutral	$773.03M	59.21	-1.12%	8.59%	-6.30%	-109.90%
LILAK	50 Neutral	$1.31B	―	-57.56%	―	-1.56%	-10914.21%
WOW	46 Neutral	$356.43M	―	-26.19%	―	-8.37%	78.45%
ATUS	41 Neutral	$1.04B	―	21.93%	―	-3.68%	-2563.04%

Cable ONE Corporate Events

Cable ONE CEO Julia Laulis Announces Retirement

On June 3, 2025, Cable One announced the upcoming retirement of its CEO, Julia M. Laulis, after 26 years with the company and over 40 years in the cable and broadband industry. Laulis, who became CEO in 2017, has been pivotal in rebranding the company as Sparklight, expanding its national presence, and transitioning to a broadband-first model. Her leadership has been marked by a commitment to innovation and community engagement. The Board is conducting a search for her successor, with Laulis remaining as a senior advisor to ensure a smooth transition.

The most recent analyst rating on (CABO) stock is a Hold with a $480.00 price target. To see the full list of analyst forecasts on Cable ONE stock, see the CABO Stock Forecast page.

Cable ONE Holds Annual Stockholders Meeting

On May 15, 2025, Cable One, Inc. held its Annual Meeting of Stockholders where key decisions were made. The stockholders elected eight directors to serve until the 2026 Annual Meeting, and the board size was reduced to eight members. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 was ratified, and the compensation for named executive officers for 2024 was approved on a non-binding advisory basis.

The most recent analyst rating on (CABO) stock is a Hold with a $480.00 price target. To see the full list of analyst forecasts on Cable ONE stock, see the CABO Stock Forecast page.