Wideopenwest (WOW) AI Stock Analysis

• Market Cap: $366.67M
• Dividend Yield: N/A
• Average Volume (3M): 451.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -8.13%
• EPS Growth: 79.68%
• Country: US
• Employees: 1,320
• Sector: Communication Services
• Sector Strength: 98
• Industry: Telecommunications Services
• EPS (TTM): -0.72
• Shares Outstanding: 84,681,280
• 10 Day Avg. Volume: 428,515
• 30 Day Avg. Volume: 451,371
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.69
• Price to Cash Flow (P/CF): 3.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.50
• Price Target Upside: 64.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

WideOpenWest's overall stock score reflects significant financial challenges, including declining revenues and persistent losses, which heavily impact its valuation. While there is positive momentum in technical indicators and some progress in strategic initiatives, ongoing issues with subscriber and revenue losses, combined with a negative P/E ratio, present substantial risks. The company needs to achieve financial restructuring and sustainable growth to improve its attractiveness to investors.

Wideopenwest Business Overview & Revenue Model

Company Description

WideOpenWest, Inc. provides high speed data, cable television, and digital telephony services to residential and business services customers in the United States. Its video services include basic cable services that comprise local broadcast television and local community programming; digital cable services; WOW tv+ that offers traditional cable video and cloud DVR functionality, voice remote with Google Assistant, and Netflix integration along with access to various streaming services and apps through the Google Play Store; and ultra-video products, as well as offers commercial-free movies, TV shows, sports, and other special event entertainment programs. The company's telephony services consist of local and long-distance telephone services; business telephony and data services include fiber based, office-to-office metro Ethernet, session initiated protocol trunking, colocation infrastructure, cloud computing, managed backup, and recovery services. As of December 31, 2021, it served approximately 1.9 million home and business, and 532,900 customers in the states of Alabama, Florida, Georgia, Michigan, South Carolina, and Tennessee. The company was formerly known as WideOpenWest Kite, Inc. and changed its name to WideOpenWest, Inc. in March 2017. WideOpenWest, Inc. was founded in 2001 and is based in Englewood, Colorado.

How the Company Makes Money

WOW generates revenue primarily through subscription fees for its broadband internet, cable television, and phone services. The company offers various packages and pricing tiers, allowing customers to choose bundled services or individual options, catering to different consumer preferences and budgets. Additionally, WOW may earn from advertising on its cable network and by providing business services, including enterprise-level broadband solutions. Key revenue streams include monthly subscription fees, equipment rental charges, and potentially advertising revenue. While specific partnerships may enhance service delivery or product offerings, WOW's primary earnings are driven by its competitive pricing and service bundling strategies.

Wideopenwest Financial Statement Overview

Summary

WideOpenWest faces significant financial challenges, as evidenced by declining revenues, persistent losses, and a weak balance sheet. High debt levels and negative free cash flow further compound these issues. While there are some signs of improvement in operating cash flow and a slight increase in stockholders' equity, the company must undertake significant operational and financial restructuring to achieve sustainable growth and profitability.

Income Statement

Wideopenwest has experienced declining revenues over the years, with total revenue dropping from $1.15 billion in 2020 to $630.9 million in 2024. The company has consistently reported negative net income, indicating persistent challenges in profitability. Gross profit margin has also decreased significantly, reflecting reduced operational efficiency. Despite an improvement in EBIT and EBITDA margins in 2024 compared to 2023, the company's financial performance remains weak.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio worsening from negative to positive due to declining equity. The equity ratio remains low, highlighting a weak capital structure. However, a slight improvement in stockholders' equity in 2024 compared to 2023 indicates some progress in addressing financial stability. The company's total assets have decreased, further emphasizing the need for financial restructuring.

Cash Flow

Operating cash flow has shown some resilience with an increase in 2024, but free cash flow remains negative, indicating challenges in generating surplus cash after capital expenditures. The free cash flow to net income ratio indicates inefficiencies in converting net income into cash. The company must focus on improving its cash generation capabilities to sustain operations and reduce dependency on external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
630.90M	686.70M	704.90M	725.70M	1.15B
	Gross Profit
374.10M	385.70M	377.90M	349.30M	578.20M
	EBIT
6.50M	-315.00M	50.90M	14.30M	151.10M
	EBITDA
219.10M	-103.30M	209.60M	174.10M	221.70M
	Net Income Common Stockholders
-58.80M	-287.70M	-2.50M	-68.60M	14.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.80M	23.40M	31.00M	193.20M	12.40M
	Total Assets
1.51B	1.51B	1.72B	1.91B	2.49B
	Total Debt
1.04B	956.80M	759.20M	760.30M	2.29B
	Net Debt
1.00B	933.40M	728.20M	567.10M	2.28B
	Total Liabilities
1.30B	1.26B	1.14B	1.34B	2.70B
	Stockholders Equity
208.80M	258.20M	575.10M	570.80M	-212.40M
Cash Flow		Free Cash Flow
-52.10M	-133.80M	-133.40M	-33.70M	43.30M
	Operating Cash Flow
163.70M	135.10M	33.80M	174.00M	277.40M
	Investing Cash Flow
-215.60M	-268.80M	-165.80M	1.56B	-234.30M
	Financing Cash Flow
67.30M	126.10M	-30.20M	-1.55B	-51.70M

Wideopenwest Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.56
• 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 WOW, the sentiment is Negative. The current price of 4.56 is below the 20-day moving average (MA) of 4.74, below the 50-day MA of 4.63, and below the 200-day MA of 5.02, indicating a bearish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 53.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WOW.

Wideopenwest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	77 Outperform	$133.02B	8.49	19.24%	3.77%	1.78%	11.62%
TDS	64 Neutral	$3.77B	―	-0.54%	0.46%	-3.80%	83.27%
Sector *	58 Neutral	$27.01B	3.11	-10.53%	4.44%	2.30%	-43.13%
WOW	57 Neutral	$366.67M	―	-25.18%	―	-8.13%	79.68%
CABO	56 Neutral	$1.41B	97.38	0.80%	4.70%	-5.87%	-93.49%
LBRDA	52 Neutral	$11.39B	12.91	9.05%	―	3.57%	28.42%
ATUS	51 Neutral	$1.13B	―	21.93%	―	-3.06%	-290.86%

Wideopenwest Corporate Events

WideOpenWest Investigates Suspicious Activity on Cloud Platform

WideOpenWest, Inc. recently identified suspicious activity on its back-office cloud platform and promptly initiated an incident response, disabling access to the affected application. The ongoing investigation has not revealed any material impact on the company’s operations or financial conditions, and no sensitive personal information appears to have been accessed by external parties.