Wideopenwest (WOW) AI Stock Analysis

• Market Cap: $443.09M
• Dividend Yield: N/A
• Average Volume (3M): 409.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -8.70%
• EPS Growth: 16.20%
• Country: US
• Employees: 1,320
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.43
• Shares Outstanding: 85,703,766
• 10 Day Avg. Volume: 489,477
• 30 Day Avg. Volume: 409,056
• PEG Ratio: 0.09
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -7.79
• Enterprise Value/Market Cap: 3.37
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 4.14
• Enterprise Value/Ebitda: 7.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.91
• Revenue Forecast (FY): $577.93M

• Rating: 50 Neutral
• Price Target: $5.00 ▼(-3.29% Downside)

Wideopenwest's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue and high leverage. While technical analysis shows some positive momentum, the valuation remains unattractive due to a negative P/E ratio. The earnings call provided some positive insights into growth and customer retention, but competitive pressures and acquisition uncertainty pose risks. The recent approval of the merger is a strategic positive, though legal challenges add uncertainty.

Positive Factors

Strategic Expansion

The expansion in Greenfield markets indicates a strategic growth initiative, enhancing market presence and potential revenue streams.

Customer Retention

High customer retention and ARPU growth suggest effective customer engagement and a competitive edge in service offerings.

Merger Approval

The merger approval could enhance market positioning and operational synergies, potentially leading to long-term strategic benefits.

Negative Factors

Declining Revenue

Declining revenue growth reflects challenges in market demand or competitive pressures, impacting long-term financial stability.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting the company's ability to invest in growth opportunities.

Legal Challenges

Legal challenges related to the merger create uncertainty and could delay strategic initiatives, impacting future business operations.

Wideopenwest Business Overview & Revenue Model

Company Description

Wideopenwest (WOW) is a telecommunications company that provides high-speed internet, digital television, and phone services primarily in the United States. Founded in 2001 and headquartered in Englewood, Colorado, WOW operates in both residential and commercial sectors, offering a range of products designed to meet the connectivity needs of its customers. The company focuses on delivering reliable broadband services, competitive pricing, and customer-centric support, making it a prominent player in the telecommunication industry.

How the Company Makes Money

Wideopenwest generates revenue primarily through subscription-based services. The company offers various internet plans, digital television packages, and phone services, with customers typically signing contracts for a specified term. Key revenue streams include monthly subscription fees from residential customers, business service contracts, and the sale of bundled service packages that combine internet, TV, and phone into a single offering. Additionally, WOW may generate income from advertising partnerships related to its television services and from fees associated with installation and equipment rentals. The company also focuses on expanding its customer base through strategic marketing campaigns and partnerships with local businesses, which can enhance its earnings potential.

Wideopenwest Financial Statement Overview

Summary

Wideopenwest faces significant financial challenges across all verticals. The income statement shows declining revenue and persistent losses. The balance sheet is heavily leveraged, posing financial risk. Cash flow analysis indicates difficulties in generating free cash flow, despite positive operating cash flow. The company needs to address operational inefficiencies and leverage to improve financial health.

Income Statement

Wideopenwest's income statement reflects significant challenges, with declining revenue and negative net income over the TTM (Trailing-Twelve-Months). The gross profit margin has decreased, indicating pressure on profitability. The net profit margin is negative, highlighting ongoing losses. Revenue growth is negative, showing a contraction in sales. While EBITDA margin remains positive, the EBIT margin is negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 7.34, indicating significant financial risk. The return on equity is negative, reflecting poor returns for shareholders. The equity ratio is low, suggesting limited equity buffer against liabilities. Overall, the balance sheet indicates financial instability and high leverage risk.

Cash Flow

Cash flow analysis reveals a mixed picture. Operating cash flow is positive, but free cash flow is negative, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is below 1, suggesting cash flow issues relative to reported earnings. Free cash flow growth is positive, but the free cash flow to net income ratio is negative, reflecting cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	590.80M	630.90M	686.70M	704.90M	725.70M	730.20M
Gross Profit	360.60M	374.10M	385.70M	377.90M	349.30M	325.00M
EBITDA	211.50M	216.50M	-119.20M	195.20M	221.40M	221.70M
Net Income	-78.00M	-58.80M	-287.70M	-2.50M	770.50M	14.40M
Balance Sheet
Total Assets	1.51B	1.51B	1.51B	1.72B	1.91B	2.49B
Cash, Cash Equivalents and Short-Term Investments	22.90M	38.80M	23.40M	31.00M	193.20M	12.40M
Total Debt	1.09B	1.04B	956.80M	759.20M	760.30M	2.29B
Total Liabilities	1.36B	1.30B	1.26B	1.14B	1.34B	2.70B
Stockholders Equity	148.00M	208.80M	258.20M	575.10M	570.80M	-212.40M
Cash Flow
Free Cash Flow	-68.30M	-52.10M	-133.80M	-133.40M	-33.70M	43.30M
Operating Cash Flow	122.70M	163.70M	135.10M	33.80M	174.00M	277.40M
Investing Cash Flow	-189.40M	-215.60M	-268.80M	-165.80M	1.56B	-234.30M
Financing Cash Flow	68.00M	67.30M	126.10M	-30.20M	-1.55B	-51.70M

Wideopenwest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5.17 is below the 20-day moving average (MA) of 5.17, above the 50-day MA of 5.16, and above the 200-day MA of 4.63, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WOW.

Wideopenwest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LUMN	55 Neutral	$7.83B	-4.72	―	―	-4.56%	23.46%
CABO	52 Neutral	$754.04M	―	-27.38%	8.82%	-4.94%	-335.70%
WOW	50 Neutral	$443.09M	-5.48	-42.79%	―	-8.70%	16.20%
SHEN	50 Neutral	$640.66M	-15.88	-4.41%	0.94%	11.59%	-106.83%
CCOI	41 Neutral	$1.11B	-5.50	-136.94%	13.45%	-6.48%	-588.01%
ATUS	40 Underperform	―	―	―	―	-4.19%	-982.67%

Wideopenwest Corporate Events

WideOpenWest Stockholders Approve Merger with Bandit Parent

On December 3, 2025, WideOpenWest, Inc. held a special meeting of stockholders to vote on proposals related to a merger with Bandit Parent, LP. The merger proposal was approved by a significant majority, with 80.1% of shareholders present and voting. Stockholders also approved the compensation plan for executive officers in connection with the merger. The approval of these proposals indicates a strategic move for WideOpenWest, potentially impacting its market positioning by becoming an indirect wholly owned subsidiary of Bandit Parent, LP.

Wideopenwest Faces Legal Challenge Over Merger Proxy

On August 11, 2025, WideOpenWest, Inc. entered into a Merger Agreement with Bandit Parent, LP, and Bandit Merger Sub, Inc., affiliates of DigitalBridge Group, Inc. and Crestview Partners III GP, L.P. The merger, subject to stockholder approval on December 3, 2025, will result in WOW! becoming a wholly owned subsidiary of Parent. However, litigation has arisen, with a stockholder filing a complaint on November 10, 2025, alleging deficiencies in the merger’s proxy statement. Despite denying these claims, WOW! has made supplemental disclosures to avoid delays and minimize expenses. The outcome of these legal challenges remains uncertain, but the company believes the allegations are without merit.