Cable ONE (CABO) AI Stock Analysis

• Market Cap: $565.15M
• Dividend Yield: 10.11%
• Average Volume (3M): 137.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -4.94%
• EPS Growth: -335.70%
• Country: US
• Employees: 2,817
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 14.52
• Shares Outstanding: 5,635,177
• 10 Day Avg. Volume: 173,453
• 30 Day Avg. Volume: 137,231
• 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: 6.52
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: 30.01
• 1Y Price Target: $202.50
• Price Target Upside: 124.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $81.00 ▼(-10.37% Downside)

The score is held down primarily by weak financial performance (declining revenue, losses, and high leverage) and a bearish technical trend (below key moving averages with negative MACD). Offsets include a high dividend yield, some cash-flow resilience and debt paydown progress, plus modestly constructive (but mixed) earnings-call updates and corporate actions.

Positive Factors

Geographic scale from MBI acquisition

Acquiring the remaining stake in MBI materially expands Cable One's footprint into new regions, adding scale, customer density and diversified revenue streams. That broader geographic mix can lower per-customer costs, improve procurement leverage and reduce concentration risk over the medium term.

Material debt reduction progress

Meaningful debt paydown improves financial flexibility and reduces interest expense pressure, supporting sustained capex funding and dividend capacity. A lower leverage baseline also increases options for strategic investments or targeted acquisitions without immediately stressing covenants or liquidity.

New service products driving retention

Successful rollouts of Tech Assist (and a mobile pilot) create recurring ancillary revenue and strengthen customer stickiness. Durable service extensions raise ARPU potential, make churn more costly for customers to avoid, and support long-term lifetime value improvements if adoption scales.

Negative Factors

Declining revenue and negative margins

Sustained revenue declines and negative operating margins erode internal funding for network investment and dividends. Weak profitability constrains reinvestment, limits pricing flexibility versus competitors, and increases dependence on external financing for strategic initiatives.

Ongoing subscriber losses and churn pressure

Persistent customer attrition reduces the subscription base and weakens future revenue visibility. Higher churn forces greater marketing and promotion spend to stabilize net adds, raising acquisition costs and undermining margin sustainability across the subscriber life cycle.

Leverage risk from acquisition and legacy debt

Assuming MBI's large term loan and funding the deal with borrowings could spike consolidated leverage and create refinance risk near 2027. Elevated debt service obligations impair capital allocation, reduce resilience to revenue cycles and increase sensitivity to interest-rate or covenant shocks.

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 services, which include residential and business broadband internet access, cable television packages, and voice services. The company's internet services are a significant revenue driver, as demand for high-speed connectivity has surged. Cable ONE also earns income from advertising through its cable television offerings and may engage in partnerships with local content providers to enhance its service offerings. Additionally, the company benefits from customer retention strategies, including bundled service packages that encourage long-term subscriptions, thus contributing to its overall earnings.

Cable ONE Financial Statement Overview

Summary

Weak profitability and declining revenue are the main drags (negative net income and negative EBIT/EBITDA margins). Leverage is high with debt risk elevated in a downtrend, partially offset by comparatively better cash generation vs. net income and some continued free-cash-flow production despite recent declines.

Income Statement

Cable ONE's income statement shows a concerning trend with declining revenue and profitability. The TTM data reveals a negative revenue growth rate and significant net losses, leading to negative profit margins. The gross profit margin remains relatively stable, but the negative EBIT and EBITDA margins indicate operational challenges. The company needs to address these issues to improve its financial health.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a risk in a declining revenue environment. The return on equity has turned negative in the TTM period, further highlighting profitability challenges. The equity ratio remains stable, suggesting a balanced asset structure, but the high leverage needs careful management.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a significant drop in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, reflecting challenges in maintaining cash flow amidst declining profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.52B	1.58B	1.68B	1.71B	1.61B	1.33B
Gross Profit	1.13B	1.16B	1.24B	1.24B	1.15B	906.52M
EBITDA	122.83M	723.93M	924.43M	849.87M	789.60M	718.60M
Net Income	-454.07M	14.48M	224.62M	213.06M	291.82M	304.39M
Balance Sheet
Total Assets	5.69B	6.53B	6.76B	6.89B	6.95B	4.49B
Cash, Cash Equivalents and Short-Term Investments	166.65M	153.63M	190.29M	215.15M	388.80M	574.91M
Total Debt	3.29B	3.60B	3.66B	3.82B	3.85B	2.19B
Total Liabilities	4.26B	4.73B	4.95B	5.15B	5.16B	2.99B
Stockholders Equity	1.43B	1.80B	1.81B	1.74B	1.79B	1.50B
Cash Flow
Free Cash Flow	-146.28M	377.77M	292.72M	327.30M	319.81M	270.44M
Operating Cash Flow	-603.00K	664.13M	663.17M	738.04M	704.34M	574.37M
Investing Cash Flow	-400.87M	-564.45M	-341.90M	-448.27M	-2.47B	-954.91M
Financing Cash Flow	-244.53M	-136.34M	-346.13M	-463.43M	1.58B	830.18M

Cable ONE Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 90.37
• 50DMA: Negative
• 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 90.37 is above the 20-day moving average (MA) of 87.81, below the 50-day MA of 107.20, and below the 200-day MA of 143.35, indicating a neutral trend. The MACD of -6.19 indicates Negative momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 90.64 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
SIFY	62 Neutral	$1.05B	―	―	―	5.81%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GOGO	56 Neutral	$554.16M	-81.02	-6.63%	―	102.05%	-110.74%
CABO	50 Neutral	$565.15M	-1.23	-27.38%	10.11%	-4.94%	-335.70%
SHEN	50 Neutral	$644.50M	-16.14	-4.41%	0.97%	11.59%	-106.83%

Cable ONE Corporate Events

Cable One to fully acquire Mega Broadband Investments

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 as Vyve Broadband and generated about $310 million in revenue in the 12 months to September 30, 2025, serves mainly rural communities in 16 states across the Southeast, Northwest and Mid-South, with around 210,000 data customers and 675,000 passings, and will give Cable One a larger, more geographically diversified footprint and potential scale efficiencies. The option price for the remaining stake is expected to be between $475 million and $495 million, with MBI expected to carry $845 million to $895 million of term-loan debt maturing in November 2027 when it becomes a wholly owned subsidiary, and Cable One plans to fund the purchase through a mix of cash and additional borrowings, targeting closing around October 1, 2026 subject to regulatory and other customary approvals. Separately, on December 20, 2025, Cable One agreed to roll its interest in joint venture Clearwave Fiber into Point Broadband Holdings in connection with Clearwave Fiber’s planned merger into a Point Broadband affiliate, a second-quarter 2026 deal that, following a pre-closing sale of Clearwave’s Southern Illinois assets, will leave Cable One as a minority common equity holder in the enlarged Point Broadband platform and further reshapes its portfolio of rural-focused broadband investments.

The most recent analyst rating on (CABO) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on Cable ONE stock, see the CABO Stock Forecast page.

Cable One Announces New CEO and Leadership Transition

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, 2026, following the retirement of long-serving leader Julia M. Laulis. To manage the handover, Chief Financial Officer Todd M. Koetje has been named interim CEO from January 1, 2026 until Holanda’s arrival, while director Mary E. Meduski has been elevated to independent chair of the board, maintaining her role in board governance. Holanda, who brings more than 35 years of industry experience from Astound Broadband, Choice Cable TV of Puerto Rico, Patriot Media, Charter Communications and Comcast, will receive a compensation package that includes a $1.4 million base salary, a target bonus equal to 150% of salary, a $10 million equity award mix of time- and performance-based RSUs, relocation assistance and a potential one-time payment to replace any forfeited 2025 bonus from his prior employer, subject to clawback if he departs within two years. The board characterized his selection as the outcome of a comprehensive search for a leader capable of driving growth and enhancing shareholder value, underscoring Cable One’s intent to strengthen its strategic and competitive position in a dynamic broadband market while preserving continuity in financial leadership and corporate governance during the transition period.

The most recent analyst rating on (CABO) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on Cable ONE stock, see the CABO Stock Forecast page.