Wideopenwest (WOW) AI Stock Analysis

• Market Cap: $435.70M
• Dividend Yield: N/A
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -8.67%
• EPS Growth: 63.35%
• Country: US
• Employees: 1,320
• Sector: Communication Services
• Sector Strength: 96
• Industry: Telecommunications Services
• EPS (TTM): -0.22
• Shares Outstanding: 85,767,970
• 10 Day Avg. Volume: 673,185
• 30 Day Avg. Volume: 2,442,117
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.16
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 5.45
• Enterprise Value/Ebitda: 5.70
• 1Y Price Target: $5.35
• Price Target Upside: 4.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: $5.50 ▲(7.00% Upside)

Wideopenwest's overall stock score is influenced by strong technical momentum and a positive acquisition announcement. However, financial performance concerns, particularly high leverage and negative net income, weigh heavily. The valuation remains unattractive due to negative earnings, despite strategic initiatives and potential growth from the acquisition.

Positive Factors

Analyst Rating

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

Liquidity

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

Partnership

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

Negative Factors

Stock Valuation

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

Valuation

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

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 its subscription-based services, including broadband internet, cable television, and VoIP phone services. The company charges customers monthly fees for these services, with various pricing tiers based on speed and channel packages. Additionally, WOW earns revenue from advertising sales through its cable television offerings and may benefit from partnerships with content providers and local businesses. The company's focus on customer retention and competitive pricing strategies also contribute to its earnings by reducing churn and attracting new subscribers.

Wideopenwest Financial Statement Overview

Summary

Wideopenwest shows operational efficiency with strong EBITDA margins but faces challenges with declining revenue and net losses. High leverage and decreasing equity raise concerns about financial stability, while 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	619.40M	630.90M	686.70M	704.90M	725.70M	1.15B
Gross Profit	252.80M	374.10M	385.70M	377.90M	349.30M	578.20M
EBITDA	242.00M	216.50M	-103.30M	209.60M	174.10M	221.70M
Net Income	-57.70M	-58.80M	-287.70M	-2.50M	-68.60M	14.40M
Balance Sheet
Total Assets	1.50B	1.51B	1.51B	1.72B	1.91B	2.49B
Cash, Cash Equivalents and Short-Term Investments	28.80M	38.80M	23.40M	31.00M	193.20M	12.40M
Total Debt	1.06B	1.04B	956.80M	759.20M	760.30M	2.29B
Total Liabilities	1.31B	1.30B	1.26B	1.14B	1.34B	2.70B
Stockholders Equity	196.00M	208.80M	258.20M	575.10M	570.80M	-212.40M
Cash Flow
Free Cash Flow	-35.00M	-52.10M	-133.80M	-133.40M	-33.70M	43.30M
Operating Cash Flow	147.20M	163.70M	135.10M	33.80M	174.00M	277.40M
Investing Cash Flow	-180.80M	-215.60M	-268.80M	-165.80M	1.56B	-234.30M
Financing Cash Flow	43.20M	67.30M	126.10M	-30.20M	-1.55B	-51.70M

Wideopenwest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 5.14 is above the 20-day moving average (MA) of 4.90, above the 50-day MA of 4.23, and above the 200-day MA of 4.48, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 78.39 is Negative, neither overbought nor oversold. The STOCH value of 51.85 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
VEON	74 Outperform	$4.00B	3.87	89.94%	―	8.66%	―
IRDM	67 Neutral	$2.61B	24.59	17.96%	2.23%	7.56%	38.78%
LBTYA	62 Neutral	$4.09B	―	-20.95%	―	3.53%	3.23%
Sector *	60 Neutral	$46.29B	4.07	-13.11%	4.12%	1.85%	-42.71%
WOW	60 Neutral	$435.70M	―	-30.99%	―	-8.67%	63.35%
LUMN	51 Neutral	$5.10B	―	-78.94%	―	-6.50%	43.47%
CCOI	46 Neutral	$1.80B	102.75	-93.59%	10.91%	-6.64%	-569.94%

Wideopenwest Corporate Events

Wideopenwest Enters Merger Agreement with DigitalBridge

WideOpenWest, Inc. (WOW!), a Delaware corporation, has entered into a merger agreement with Bandit Parent, LP and Bandit Merger Sub, Inc., affiliates of DigitalBridge Partners III, LP and Crestview Partners, on August 11, 2025. The merger will result in WOW! becoming a wholly owned subsidiary of Parent, with its common stock being delisted from the New York Stock Exchange. The merger agreement includes a cash consideration of $5.20 per share for WOW! stockholders, subject to approval by the majority of outstanding shares. The merger is contingent on regulatory approvals and other conditions, and if completed, it will impact WOW!’s market presence and shareholder value. Additionally, an amendment to WOW!’s credit agreement extends the maturity date of its revolving credit facility, conditional on the merger’s closing.

Wideopenwest Announces Acquisition by DigitalBridge and Crestview

On August 11, 2025, WideOpenWest, Inc. announced a definitive agreement for its acquisition by DigitalBridge Investments, LLC and Crestview Partners for $1.5 billion. The transaction, offering $5.20 per share in cash, represents a significant premium over WOW!’s previous stock prices. This move is expected to enhance WOW!’s position in the broadband industry by providing resources for network expansion and technology upgrades. The transaction, approved by WOW!’s Board of Directors, is anticipated to close by early 2026, subject to regulatory approvals and stockholder consent.