Wideopenwest (WOW) AI Stock Analysis

• Market Cap: $351.31M
• Dividend Yield: N/A
• Average Volume (3M): 270.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -8.37%
• EPS Growth: 78.45%
• Country: US
• Employees: 1,320
• Sector: Communication Services
• Sector Strength: 87
• Industry: Telecommunications Services
• EPS (TTM): -0.17
• Shares Outstanding: 85,475,940
• 10 Day Avg. Volume: 287,954
• 30 Day Avg. Volume: 270,277
• PEG Ratio: 3.17
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.73
• Enterprise Value/Market Cap: 4.25
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 5.91
• Enterprise Value/Ebitda: 1.91
• 1Y Price Target: $6.50
• Price Target Upside: 58.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $4.00 ▼(-2.68%Downside)

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

Analyst Ratings

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

Liquidity and Expansion

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

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, 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 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 a solid EBITDA margin of 39.1%, but revenue decline and net losses are concerns. The high debt-to-equity ratio of 5.38 indicates significant leverage, raising financial stability risks. Strong cash generation is overshadowed by negative free cash flow, limiting 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	245.40M	-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: Neutral
• Last Price: 4.11
• 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 Neutral. The current price of 4.11 is above the 20-day moving average (MA) of 4.08, below the 50-day MA of 4.23, and below the 200-day MA of 4.70, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 67.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WOW.

Wideopenwest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRDM	78 Outperform	$3.41B	29.60	18.01%	1.78%	6.64%	403.10%
VEON	63 Neutral	$3.05B	6.72	43.22%	―	8.27%	―
Sector *	61 Neutral	$41.01B	-0.64	-14.21%	3.80%	2.39%	-73.52%
LUMN	51 Neutral	$4.57B	―	-78.94%	―	-7.86%	97.11%
LBTYA	50 Neutral	$3.49B	―	-20.95%	―	3.53%	3.23%
WOW	46 Neutral	$351.31M	―	-26.19%	―	-8.37%	78.45%
CCOI	45 Neutral	$2.50B	102.75	-59.30%	7.99%	-3.47%	-115.75%

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.