Wideopenwest (WOW) AI Stock Analysis

• Market Cap: $444.80M
• Dividend Yield: N/A
• Average Volume (3M): 359.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• 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: 313,532
• 30 Day Avg. Volume: 359,940
• 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: 3.35
• 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 significant financial challenges, including declining revenue, persistent losses, and high leverage. While technical indicators show some positive momentum, and the earnings call highlighted growth in key markets, these are overshadowed by valuation concerns and acquisition uncertainty. The company's ability to improve its financial health and navigate competitive pressures will be crucial for future performance.

Positive Factors

Expansion in Greenfield Markets

The expansion in Greenfield markets with a robust penetration rate signifies strategic growth, enhancing market presence and long-term revenue potential.

Customer Retention and Satisfaction

High customer retention and satisfaction through strong ARPU growth and low churn rates indicate a competitive edge, supporting stable revenue streams.

Adjusted EBITDA Margins

Strong EBITDA margins reflect operational efficiency and profitability, providing a buffer against financial challenges and supporting sustainable growth.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market competitiveness and demand, potentially affecting long-term financial stability and growth prospects.

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Pending Acquisition Uncertainty

Uncertainty from the pending acquisition may disrupt strategic planning and operations, affecting employee morale and investor confidence in the near term.

Wideopenwest Business Overview & Revenue Model

Company Description

Wideopenwest (WOW) is a telecommunications company that provides high-speed internet, cable television, and digital phone services primarily in the United States. Founded in 1996, WOW operates in several markets, focusing on delivering reliable and affordable connectivity solutions to residential and business customers. The company emphasizes customer service and aims to enhance digital experiences through its innovative products and services.

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 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: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 5.17, above the 50-day MA of 5.15, and above the 200-day MA of 4.61, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, 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	56 Neutral	$8.50B	―	―	―	-4.56%	23.46%
CABO	52 Neutral	$679.10M	―	-27.38%	9.75%	-4.94%	-335.70%
WOW	50 Neutral	$444.80M	―	-42.79%	―	-8.70%	16.20%
SHEN	48 Neutral	$591.25M	―	-4.41%	1.02%	11.59%	-106.83%
CCOI	41 Neutral	$981.93M	―	-136.94%	15.57%	-6.48%	-588.01%
ATUS	40 Underperform	―	―	―	―	-4.19%	-982.67%

Wideopenwest Corporate Events

WideOpenWest Reports Q3 2025 Earnings and Acquisition Plans

WideOpenWest, Inc. (WOW!) is a prominent broadband provider in the United States, offering high-speed internet, cable TV, and telephony services across 20 markets, primarily in the Midwest and Southeast regions. The company is known for its efficient network and commitment to customer service.

WOW! Earnings Call: Growth Amidst Acquisition Uncertainty

The recent earnings call for WideOpenWest (WOW!) painted a picture of robust growth and customer retention, particularly in both Greenfield and legacy markets. The company’s strategic expansions have shown considerable success, though challenges remain due to competitive pressures and the uncertainty surrounding a pending acquisition.

WOW! Earnings Call: Strategic Growth Amid Challenges

The recent earnings call for WideOpenWest (WOW!) presented a mixed sentiment, highlighting significant strategic advancements alongside some challenges. The company announced a promising acquisition agreement and strong expansion in greenfield markets, achieving record Average Revenue Per User (ARPU) and slight growth in adjusted EBITDA. However, these positives were tempered by declines in high-speed data revenue, overall revenue, and subscriber numbers, particularly in traditional video services.

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.

The most recent analyst rating on (WOW) stock is a Hold with a $5.20 price target. To see the full list of analyst forecasts on Wideopenwest stock, see the WOW Stock Forecast page.

Wideopenwest’s Merger Uncertainty: Potential Risks to Operations, Employee Stability, and Market Position

Wideopenwest faces significant business risks due to uncertainties surrounding its pending Merger, which could disrupt operations and strain relationships with customers and partners. The uncertainty may hinder employee recruitment and retention, as staff may be unsure of their future roles. Management’s focus on the Merger could divert attention from daily operations, potentially affecting revenue and financial stability. Delays or termination of the Merger could further exacerbate these issues, impacting the company’s market position and stock value.