Cable ONE (CABO) AI Stock Analysis

• Market Cap: $866.81M
• Dividend Yield: 7.5%
• Average Volume (3M): 224.19K
• Price to Earnings (P/E): 59.2
• Beta (1Y): 0.45
• Revenue Growth: -5.43%
• EPS Growth: -363.95%
• Country: US
• Employees: 2,817
• Sector: Communication Services
• Sector Strength: 92
• Industry: Telecommunications Services
• EPS (TTM): -77.70
• Shares Outstanding: 5,628,990
• 10 Day Avg. Volume: 197,281
• 30 Day Avg. Volume: 224,195
• PEG Ratio: -1.50
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 5.39
• Enterprise Value/Market Cap: 4.75
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 3.62
• Enterprise Value/Ebitda: 99.49
• 1Y Price Target: $213.80
• Price Target Upside: 35.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 48 Neutral
• Price Target: $138.00 ▼(-12.30% Downside)

Cable ONE's overall stock score is primarily impacted by financial challenges, including declining revenue and high leverage. Technical analysis and valuation further highlight risks with bearish trends and a negative P/E ratio. The earnings call provides some optimism with strategic initiatives, but competitive pressures and customer losses remain significant concerns.

Positive Factors

Broadband ARPU

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

Financial Strategy

Investors might view the decision to eliminate the dividend in favor of debt repayment as immaterial since it only pays down an incremental 2% of debt annually.

Negative Factors

Competitive Market

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

Dividend Suspension

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.

Subscriber Growth Challenges

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

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 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 shows strong operational efficiency with high gross profit margins and robust cash flow. However, declining revenue and net profit margins, alongside moderate leverage, indicate challenges in maintaining growth.

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	1.54B	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: Neutral
• Last Price: 157.36
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 157.36 is above the 20-day moving average (MA) of 143.19, above the 50-day MA of 136.08, and below the 200-day MA of 253.03, indicating a neutral trend. The MACD of 3.28 indicates Negative momentum. The RSI at 60.72 is Neutral, neither overbought nor oversold. The STOCH value of 94.05 is Negative, 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
Sector *	60 Neutral	$44.03B	1.71	-11.99%	3.98%	2.32%	-37.93%
WOW	60 Neutral	$434.84M	―	-30.99%	―	-8.67%	63.35%
LILA	58 Neutral	$1.59B	―	-103.84%	―	-2.15%	-1269.05%
LILAK	58 Neutral	$1.59B	―	-103.84%	―	-2.15%	-1269.05%
CABO	48 Neutral	$866.81M	59.21	-30.85%	7.50%	-5.43%	-363.95%
SHEN	47 Neutral	$686.21M	―	-3.93%	0.80%	16.73%	-237.78%
ATUS	41 Neutral	$1.11B	―	21.93%	―	-3.82%	-363.28%

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.