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Cable ONE, Inc (CABO)
NYSE:CABO

Cable ONE (CABO) AI Stock Analysis

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Cable ONE

(NYSE:CABO)

Rating:54Neutral
Price Target:
Cable ONE faces significant challenges with declining revenues and profitability, reflected in its negative earnings and dividend suspension. While technical indicators suggest a bearish trend, the company's strategic initiatives in product innovation and debt reduction could offer long-term growth potential. However, immediate financial pressures and market sentiment weigh heavily on its current performance.
Positive Factors
Broadband Revenue Growth
Management is confident in 2025 Broadband ARPU growth driven by promo roll-offs, the remaining autopay discount reduction, and gross add sell ins.
Management Confidence
Management remains confident in growth for broadband top line revenue and subscribers for the year despite worse than expected Q1 results.
Negative Factors
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.
Subscriber Losses
Cable One lost -10K subscribers vs. +2.0K adds and the St.'s +2.2K adds, clearly a disappointment as investors were hoping that the company would turn the corner.

Cable ONE (CABO) vs. SPDR S&P 500 ETF (SPY)

Cable ONE Business Overview & Revenue Model

Company DescriptionCable 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 MoneyCable 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
68
Positive
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
72
Positive
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
70
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.56B1.58B1.68B1.71B1.61B1.33B
Gross Profit
1.16B1.16B1.24B1.24B1.15B906.52M
EBIT
420.30M441.88M526.90M538.99M456.57M369.29M
EBITDA
659.31M723.93M924.43M888.02M814.23M655.26M
Net Income Common Stockholders
46.63M14.48M224.62M234.12M291.82M304.39M
Balance SheetCash, Cash Equivalents and Short-Term Investments
210.73M153.63M190.29M215.15M388.80M574.91M
Total Assets
6.84B6.53B6.76B6.91B6.95B4.49B
Total Debt
3.61B3.60B3.66B3.81B3.84B2.18B
Net Debt
3.40B3.44B3.47B3.59B3.45B1.60B
Total Liabilities
4.91B4.73B4.95B5.16B5.16B2.99B
Stockholders Equity
1.93B1.80B1.81B1.76B1.79B1.50B
Cash FlowFree Cash Flow
475.16M377.77M292.72M327.30M319.81M270.44M
Operating Cash Flow
615.71M664.13M663.17M738.04M704.34M574.37M
Investing Cash Flow
-551.03M-564.45M-341.90M-448.27M-2.47B-954.91M
Financing Cash Flow
-126.33M-136.34M-346.13M-463.43M1.58B830.18M

Cable ONE Technical Analysis

Technical Analysis Sentiment
Negative
Last Price151.69
Price Trends
50DMA
228.54
Negative
100DMA
265.09
Negative
200DMA
312.71
Negative
Market Momentum
MACD
-25.39
Positive
RSI
33.27
Neutral
STOCH
18.54
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 151.69 is below the 20-day moving average (MA) of 184.15, below the 50-day MA of 228.54, and below the 200-day MA of 312.71, indicating a bearish trend. The MACD of -25.39 indicates Positive momentum. The RSI at 33.27 is Neutral, neither overbought nor oversold. The STOCH value of 18.54 is Positive, 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 36 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 2 New Risks
1.
If we fail to maintain effective internal control over financial reporting or disclosure controls and procedures, we may not be able to accurately and timely report our financial results, which could have a material adverse effect on our operations, investor confidence in our business and the trading prices of our securities. Q4, 2024
2.
We use AI in our business, and challenges with properly managing its use could result in reputational harm, competitive harm and legal liability, and adversely affect our results of operations. Q4, 2024

Cable ONE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$14.12B6.43-3.56%3.69%2.49%-35.43%
54
Neutral
$853.68M59.21-1.12%7.78%-6.30%-109.90%
52
Neutral
$617.69M-4.30%0.89%21.68%-1010.29%
49
Neutral
$1.02B-57.56%-1.56%-10914.21%
WOWOW
48
Neutral
$361.56M-26.19%-8.37%78.45%
45
Neutral
$1.02B-57.56%-1.56%-10914.21%
44
Neutral
$1.10B21.93%-3.68%-2563.04%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CABO
Cable ONE
151.69
-207.75
-57.80%
SHEN
Shenandoah Telecommunications Co
11.26
-6.10
-35.14%
LILA
Liberty Global LiLAC
5.02
-3.60
-41.76%
LILAK
Liberty LiLAC Group
5.12
-3.50
-40.60%
WOW
Wideopenwest
4.23
-0.56
-11.69%
ATUS
Altice Usa
2.36
-0.07
-2.88%

Cable ONE Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: -42.10%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook. While the company is introducing new products and focusing on debt repayment, it faces challenges such as declining revenues and the suspension of dividends. Despite efforts to drive future growth, the current financial performance shows significant declines.
Q1-2025 Updates
Positive Updates
Introduction of New Products
FlexConnect and Internet Lift products are tailored for value-conscious customers and are expected to drive growth. FlexConnect targets customers seeking value by choice, while Internet Lift is for value by need customers.
Increased Adoption of SecurePlus
SecurePlus product adoption increased by 15% since the start of 2025, and the Ultimate WiFi bundle is resonating well with 17% of new customers choosing it this quarter.
Business Data Revenue Growth
Business data revenues grew by 1.2% in Q1 2025 compared to Q1 2024, with strong performance from carrier and enterprise fiber businesses.
Debt Repayment and Financial Strategy
Approximately $45 million of debt was repaid in the quarter, with plans to use suspended dividend funds to accelerate debt reduction and invest in growth.
Negative Updates
Decrease in Total Revenue
Total revenue decreased to $380.6 million from $404.3 million in Q1 2024. Residential data revenues dropped by 4.5% year-over-year.
Decline in Residential Video Revenues
Residential video revenues decreased by 15.8% year-over-year due to losses in video subscribers.
Suspension of Dividend
The company decided to suspend its quarterly cash dividend to focus on debt repayment and organic growth investments.
Net Income and EBITDA Decline
Net income dropped to $2.6 million from $37.4 million in Q1 2024, and adjusted EBITDA decreased to $203 million from $217 million.
Company Guidance
During Cable One's first quarter 2025 earnings call, key guidance metrics were highlighted, focusing on long-term broadband revenue and customer growth strategies. The company plans to enhance customer acquisition through products like FlexConnect and Internet Lift, aimed at different value-conscious segments, with expectations to drive higher connects and improve ARPU. Despite a 4.5% year-over-year decline in residential data revenues, Cable One remains optimistic about growth, supported by low churn rates and strategic infrastructure innovations. The company reported total revenues of $380.6 million, a decrease from $404.3 million in Q1 2024, and a slight dip in ARPU. Adjusted EBITDA was $203 million, with capital expenditures increasing by 8% to $71.1 million. The company suspended its dividend to focus on debt reduction and organic growth investments, aiming to maintain a leverage ratio below 4x.

Cable ONE Corporate Events

Executive/Board ChangesShareholder Meetings
Cable ONE Holds Annual Stockholders Meeting
Neutral
May 15, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.