Wideopenwest (WOW) AI Stock Analysis

• Market Cap: $329.94M
• Dividend Yield: N/A
• Average Volume (3M): 270.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -8.37%
• EPS Growth: 78.45%
• Country: US
• Employees: 1,320
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): -0.17
• Shares Outstanding: 85,475,940
• 10 Day Avg. Volume: 314,890
• 30 Day Avg. Volume: 270,826
• PEG Ratio: -3.88
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.37
• Enterprise Value/Market Cap: 4.09
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 5.34
• Enterprise Value/Ebitda: 1.72
• 1Y Price Target: $6.50
• Price Target Upside: 68.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $4.00 ▲(3.63%Upside)

The overall stock score is constrained by weak financial performance, particularly due to high leverage and negative net income, contributing to a low valuation score. Technical analysis indicates weak momentum, further impacting the score. While the earnings call highlighted some operational strengths, the broader financial challenges weigh more heavily.

Positive Factors

Liquidity

WOW! has sufficient liquidity from its new super priority credit agreement to move toward passing 400K new fiber homes by year-end 2027.

Partnerships

WOW! partners with Columbus Clingstones as an exclusive fiber internet provider for Synovus Park in Georgia, showcasing the viability of its broadband solutions.

Stock Recommendation

The analyst maintains a BUY rating on WOW! stock, indicating confidence in the company's future performance.

Negative Factors

Fair Value Estimate

A slightly downwardly revised fair value estimate of $6.50 suggests a reassessment of the company's potential in the market.

Stock Valuation

There is a slightly downwardly revised fair value estimate of the stock from $7.50 to $6.50.

Wideopenwest Business Overview & Revenue Model

Company Description

WideOpenWest (WOW) is a telecommunications company that provides broadband Internet, cable television, and telephone services to residential and business customers in the United States. Operating primarily in the Midwest and Southeast regions, WOW is known for offering high-speed Internet and a range of TV packages designed to cater to various customer needs. The company focuses on delivering reliable connectivity and entertainment solutions through its advanced fiber-optic and hybrid coaxial networks.

How the Company Makes Money

WOW makes money through a multi-faceted revenue model centered around subscription fees for its Internet, cable TV, and phone services. The primary revenue stream comes from monthly service fees paid by residential and business customers for access to these services. WOW offers tiered Internet packages, allowing customers to choose based on speed and bandwidth, which can affect pricing and revenue. Additionally, the company generates income through premium TV packages, pay-per-view options, and equipment rental fees for modems and set-top boxes. WOW may also benefit from advertising revenues on its cable TV platform, though this is typically a smaller portion of overall earnings. Strategic partnerships with content providers and technology firms enhance WOW's service offerings and contribute to customer retention and revenue growth.

Wideopenwest Financial Statement Overview

Summary

Wideopenwest shows operational efficiency with solid EBITDA margins; however, it struggles with declining revenue and net losses. High leverage and decreasing equity pose financial stability concerns. Although cash generation is strong, negative free cash flow limits growth opportunities.

Income Statement

The income statement shows declining revenue with a decrease from $704.9M in 2022 to $619.4M in TTM 2025. Gross profit margin for TTM is 40.8%, but the company has faced consistent net losses, with a net profit margin of -9.3% in TTM. EBITDA margin remains healthy at 39.1%, indicating operational efficiency, but overall profitability is a concern due to negative net income.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 5.38 in TTM, signaling significant leverage. Stockholders' equity has decreased over the years, and the equity ratio is 13.0%, reflecting limited equity compared to assets. The return on equity is negative due to net losses, presenting potential financial instability risks.

Cash Flow

Operating cash flow to net income ratio is robust at -2.55 in TTM, suggesting strong cash generation despite net losses. Free cash flow has improved slightly, though still negative at -$35M in TTM. The company faces challenges in sustaining positive free cash flow, impacting its financial flexibility.

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
EBITDA	245.40M	-103.30M	209.60M	174.10M	221.70M
Net Income	-58.80M	-287.70M	-2.50M	-68.60M	14.40M
Balance Sheet
Total Assets	1.51B	1.51B	1.72B	1.91B	2.49B
Cash, Cash Equivalents and Short-Term Investments	38.80M	23.40M	31.00M	193.20M	12.40M
Total Debt	1.04B	956.80M	759.20M	760.30M	2.29B
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: 3.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 3.86 is below the 20-day moving average (MA) of 3.97, below the 50-day MA of 4.10, and below the 200-day MA of 4.60, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.78 is Neutral, neither overbought nor oversold. The STOCH value of 36.97 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
VEON	73 Outperform	$3.67B	8.03	43.53%	―	9.75%	―
IRDM	70 Neutral	$3.51B	30.46	17.96%	2.22%	7.56%	38.78%
Sector *	62 Neutral	$41.97B	-1.66	-12.07%	3.33%	2.07%	-69.32%
LUMN	56 Neutral	$4.69B	―	-78.94%	―	-7.86%	97.11%
LBTYA	56 Neutral	$3.57B	―	-20.95%	―	3.53%	3.23%
CCOI	48 Neutral	$2.48B	102.75	-59.30%	7.94%	-3.47%	-115.75%
WOW	46 Neutral	$329.94M	―	-26.19%	―	-8.37%	78.45%

Wideopenwest Corporate Events

Wideopenwest Stockholders Approve Key Governance Decisions

WideOpenWest, Inc. held its annual meeting of stockholders on May 8, 2025, where key decisions were made regarding the company’s governance and financial oversight. During the meeting, stockholders voted on the re-election of three Class II directors, the ratification of BDO USA, P.C. as the independent registered public accounting firm for 2025, and a non-binding advisory vote on executive compensation. The results showed strong support for the re-election of directors and the ratification of the accounting firm, while the executive compensation proposal also received approval.

The most recent analyst rating on (WOW) stock is a Buy with a $7.50 price target. To see the full list of analyst forecasts on Wideopenwest stock, see the WOW Stock Forecast page.