Cable ONE, Inc (CABO)
NYSE:CABO
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Cable ONE
(NYSE:CABO)
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Rating:46Neutral
Price Target:
$51.00
▼(-52.57% Downside)
Action:Reiterated
Date:05/15/26
The score is held down primarily by deteriorating financial performance (losses and negative TTM cash flow) and a clearly bearish technical setup (price far below key moving averages with negative MACD). A very low P/E and the earnings call’s emphasis on free cash flow generation, cost control, and balance-sheet actions provide partial support, but not enough to offset operational weakness, leverage, and subscriber/revenue declines.
Positive Factors
Free cash flow generation
Sustained near‑term free cash flow provides durable financial flexibility to fund debt reduction, M&A and targeted reinvestment without relying solely on equity markets. If maintained, this cash conversion supports long‑term balance‑sheet repair and strategic optionality over months.
Negative Factors
Revenue decline and subscriber losses
Persistent revenue and subscriber declines signal structural demand pressure in key residential markets. A shrinking recurring revenue base reduces operating leverage and makes margin recovery and cash‑flow stabilization harder absent sustained customer wins or meaningful ARPU improvements over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained near‑term free cash flow provides durable financial flexibility to fund debt reduction, M&A and targeted reinvestment without relying solely on equity markets. If maintained, this cash conversion supports long‑term balance‑sheet repair and strategic optionality over months.
Read all positive factors
Cable ONE (CABO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$267.19M
Dividend Yield10.11%
Average Volume (3M)119.95K
Price to Earnings (P/E)3.6
Beta (1Y)0.37
Revenue Growth-5.27%
EPS Growth-1495.76%
CountryUS
Employees2,817
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-57.43
Shares Outstanding5,672,853
10 Day Avg. Volume80,500
30 Day Avg. Volume119,950
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 Cap12.01
Enterprise Value/Revenue2.18
Enterprise Value/Gross Profit4.27
Enterprise Value/Ebitda4.44
Forecast
1Y Price Target
$92.75Price Target Upside-13.74% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering5
EPS Forecast (FY)23.07
Revenue Forecast (FY)$1.45B
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operational results showed clear near-term weakness (declining revenues, subscriber losses, EBITDA compression and ARPU pressure driven by competitive markets), but the company also generated substantial free cash flow, reduced operating costs, maintained disciplined capital spending, expanded multi-gig capability, saw early connect and mobile traction, and continued active balance-sheet management with liquidity to support M&A. Management emphasized execution actions underway to stabilize retention and conversion, while noting these improvements will take time to appear in results.Positive Updates
Strong Free Cash Flow Generation
Generated approximately $115M of free cash flow in Q1 2026 and ~$500M over the past four quarters, providing flexibility for debt reduction, M&A and reinvestment.
Negative Updates
Revenue Decline Year‑over‑Year
Total revenues were $353.0M in Q1 2026 versus $380.6M in Q1 2025, a decline of ~$27.6M or about -7.3% YoY, driven primarily by lower residential video (≈$10M) and residential data revenues (↓$11.6M).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Free Cash Flow Generation
Generated approximately $115M of free cash flow in Q1 2026 and ~$500M over the past four quarters, providing flexibility for debt reduction, M&A and reinvestment.
Read all positive updates
Company Guidance
Management's guidance emphasized that ARPU trends should remain broadly stable for 2026 while the company expands multi‑gig capability from ~53% of markets today to "most markets" by year‑end and tracks toward 2025 levels for full‑year CapEx; leadership reiterated a priority on debt reduction and balance‑sheet optimization. They expect to close the MBI acquisition at the previously disclosed $480 purchase price (closing expected at the beginning of Q4 2026) and anticipate assuming/refinancing MBI debt in the ~$895–$925 million range, with committed capital and liquidity to fund the deal (Q1 cash $165.6M and ~ $700M undrawn on a $1.25B revolver) and a last‑quarter annualized net leverage of ~4x. Key financials and cash‑flow context cited with the guidance included Q1 revenues of $353.0M, adjusted EBITDA of $183.3M (51.9% margin), Q1 CapEx $68.4M (Adj. EBITDA − CapEx = $114.9M), free cash flow of ~$115M in Q1 and ~$500M over the past four quarters, $90.6M of debt repayments in the quarter (including repaying $575M of converts via revolver draw), a $42M fiber‑to‑tower contract sale (recognizing a $26.6M gain), and strong LQA results from investment partners (LQA revenue $542M, LQA adj. EBITDA $262M, broadband adds +22,900, >80,000 new fiber passings).Cable ONE Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
29
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.47B | 1.50B | 1.58B | 1.68B | 1.71B | 1.61B |
| Gross Profit | 752.06M | 770.77M | 1.16B | 1.24B | 1.24B | 1.15B |
| EBITDA | 722.87M | 736.44M | 723.93M | 924.43M | 849.87M | 789.60M |
| Net Income | -323.29M | -356.46M | 14.48M | 224.62M | 213.06M | 291.82M |
Balance Sheet | ||||||
| Total Assets | 5.53B | 5.59B | 6.53B | 6.76B | 6.89B | 6.95B |
| Cash, Cash Equivalents and Short-Term Investments | 165.60M | 152.77M | 153.63M | 190.29M | 215.15M | 388.80M |
| Total Debt | 3.11B | 3.19B | 3.60B | 3.66B | 3.82B | 3.85B |
| Total Liabilities | 4.05B | 4.15B | 4.73B | 4.95B | 5.15B | 5.16B |
| Stockholders Equity | 1.48B | 1.43B | 1.80B | 1.81B | 1.74B | 1.79B |
Cash Flow | ||||||
| Free Cash Flow | -166.60M | 278.07M | 377.77M | 292.72M | 327.30M | 319.81M |
| Operating Cash Flow | -20.80M | 563.33M | 664.13M | 663.17M | 738.04M | 704.34M |
| Investing Cash Flow | -121.53M | -154.18M | -564.45M | -341.90M | -448.27M | -2.47B |
| Financing Cash Flow | -427.18M | -410.01M | -136.34M | -346.13M | -463.43M | 1.58B |
Cable ONE Technical Analysis
Negative
107.52
Price Trends
87.63
Negative
93.17
Negative
119.71
Negative
Market Momentum
-13.28
Positive
25.03
Positive
6.78
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 107.52 is above the 20-day moving average (MA) of 69.11, above the 50-day MA of 87.63, and below the 200-day MA of 119.71, indicating a bearish trend. The MACD of -13.28 indicates Positive momentum. The RSI at 25.03 is Positive, neither overbought nor oversold. The STOCH value of 6.78 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 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 |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $889.58M | -12.36 | -5.04% | 0.97% | 4.44% | -19.31% | |
53 Neutral | $1.16B | ― | -9.10% | ― | 7.56% | ― | |
51 Neutral | $542.31M | 10.42 | 13.03% | ― | 58.84% | ― | |
46 Neutral | $267.19M | 3.62 | -22.76% | 10.11% | -5.27% | -1495.76% |
* Communication Services Sector Average
CABO
Cable ONE
47.10
-101.02
-68.20%
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Cable ONE Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Cable One Shareholders Reelect Board, Approve Governance Measures
Positive
May 14, 2026
On May 14, 2026, Cable One, Inc. stockholders re-elected eight directors to serve until the 2027 annual meeting, reaffirming the company’s existing board composition and governance direction. Shareholders also ratified the appointment of Pri...
Business Operations and StrategyM&A Transactions
Cable One Restructures Fiber Investments via Clearwave Merger
Neutral
May 8, 2026
Cable One has completed a strategic transaction involving its Clearwave Fiber joint venture, following a previously announced agreement for Clearwave Fiber to be merged into Point Broadband Acquisition, LLC’s subsidiary, with Clearwave Fiber...
Executive/Board Changes
Cable One Announces COO Transition and Advisory Role
Neutral
Apr 2, 2026
On March 27, 2026, Cable One, Inc. announced that Chief Operating Officer Kenneth E. Johnson will step down from his role effective May 1, 2026, marking a planned leadership transition at the broadband communications provider. Beginning May 1, 202...
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 ...
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.