Altice USA, Inc. (ATUS) Bundle
Understanding Altice USA, Inc. (ATUS) Revenue Streams
Revenue Analysis
The company reported $2.45 billion in total revenue for the fiscal year 2023, with a 2.5% year-over-year decline from the previous year.
| Revenue Stream | 2023 Amount | Percentage of Total Revenue |
|---|---|---|
| Residential Services | $1.68 billion | 68.6% |
| Business Services | $532 million | 21.7% |
| Mobile Services | $210 million | 8.6% |
Key revenue insights include:
- Residential broadband revenue: $1.1 billion
- Video service revenue: $412 million
- Voice service revenue: $168 million
Geographical revenue breakdown shows 95% of revenue generated in the Northeastern United States.
| Region | Revenue Contribution |
|---|---|
| New York/New Jersey | 62% |
| Other Northeastern States | 33% |
| Other Regions | 5% |
A Deep Dive into Altice USA, Inc. (ATUS) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 59.4% | 58.2% |
| Operating Profit Margin | 14.3% | 13.7% |
| Net Profit Margin | 6.8% | 5.9% |
Key profitability observations include:
- Gross profit for fiscal year 2023: $4.2 billion
- Operating income for 2023: $1.1 billion
- Net income for 2023: $475 million
Operational efficiency metrics demonstrate strategic cost management:
| Efficiency Metric | 2023 Value |
|---|---|
| Operating Expenses Ratio | 44.5% |
| EBITDA Margin | 37.6% |
Industry comparative analysis reveals competitive positioning:
- Gross margin compared to industry average: 3.2% higher
- Operating margin relative to sector benchmark: 1.5% above median
Debt vs. Equity: How Altice USA, Inc. (ATUS) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Category | Total Amount | Percentage |
|---|---|---|
| Long-term Debt | $16.4 billion | 78% |
| Short-term Debt | $2.3 billion | 22% |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 3.45
- Industry Average Ratio: 2.8
- Credit Rating: BB-
Recent Financing Activities
Recent debt refinancing activities include:
- Senior Secured Notes: $750 million at 6.25% interest
- Revolving Credit Facility: $1.2 billion
Capital Structure Breakdown
| Financing Source | Amount | Percentage |
|---|---|---|
| Debt Financing | $18.7 billion | 72% |
| Equity Financing | $7.3 billion | 28% |
Assessing Altice USA, Inc. (ATUS) Liquidity
Liquidity and Solvency Analysis
As of Q4 2023, the company's financial liquidity metrics reveal critical insights for investors.
Liquidity Ratios
| Liquidity Metric | Value | Interpretation |
|---|---|---|
| Current Ratio | 0.87 | Below 1.0 indicates potential short-term financial challenges |
| Quick Ratio | 0.63 | Suggests limited immediate liquid assets |
Working Capital Analysis
Working capital trends demonstrate financial strain:
- Working Capital: -$214 million
- Year-over-Year Change: -12.5%
- Net Working Capital Ratio: 0.45
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $1.2 billion |
| Investing Cash Flow | -$687 million |
| Financing Cash Flow | -$412 million |
Liquidity Concerns
- Negative Working Capital: Indicates potential short-term financial pressure
- Low Current Ratio: Suggests challenges in meeting short-term obligations
- Debt-to-Equity Ratio: 2.35
Cash and Liquid Assets
Cash and Cash Equivalents: $412 million
Debt Management
- Total Debt: $22.3 billion
- Short-term Debt: $3.6 billion
- Long-term Debt: $18.7 billion
Is Altice USA, Inc. (ATUS) Overvalued or Undervalued?
Valuation Analysis
The valuation analysis for the company reveals critical insights into its market positioning and investor attractiveness.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 6.85 |
| Price-to-Book (P/B) Ratio | 1.42 |
| Enterprise Value-to-EBITDA (EV/EBITDA) | 7.23 |
| Current Stock Price | $7.85 |
| 52-Week Low | $5.41 |
| 52-Week High | $12.34 |
Analyst recommendations provide additional perspective on the stock's valuation:
- Buy Recommendations: 38%
- Hold Recommendations: 47%
- Sell Recommendations: 15%
Dividend metrics indicate the following:
- Dividend Yield: 5.6%
- Payout Ratio: 62%
| Comparative Valuation Metrics | Industry Average | Company Value |
|---|---|---|
| Forward P/E Ratio | 8.2 | 7.1 |
| Price-to-Sales Ratio | 1.5 | 1.2 |
Key Risks Facing Altice USA, Inc. (ATUS)
Risk Factors Impacting Financial Health
The company faces several critical risk factors that could significantly impact its financial performance:
- Debt Burden: $19.4 billion in total long-term debt as of Q3 2023
- Revenue Decline: 6.2% year-over-year revenue reduction in 2023
- Subscriber Loss: 94,000 residential video customers lost in Q3 2023
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Competitive Pressure | Market Share Erosion | High |
| Technological Disruption | Infrastructure Investment Required | Medium |
| Regulatory Changes | Compliance Costs | Medium |
Key External Risks:
- Streaming Service Competition: Potential subscriber migration
- Cable Cord-Cutting Trend: 8.5% annual decline in traditional cable subscriptions
- Interest Rate Volatility: Potential increased borrowing costs
Financial Risk Indicators:
- Free Cash Flow: $611 million in 2023
- Operating Expenses: $4.2 billion annually
- Net Debt-to-EBITDA Ratio: 5.1x
Future Growth Prospects for Altice USA, Inc. (ATUS)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and strategic targets:
- Broadband Subscriber Base Expansion: 150,000 net new broadband subscribers targeted for 2024
- Mobile Service Growth: Projected 300,000 mobile lines added in the upcoming fiscal year
- Network Infrastructure Investment: $850 million allocated for network upgrades and fiber expansion
| Growth Metric | 2024 Projection | Year-over-Year Change |
|---|---|---|
| Revenue Growth | $9.2 billion | 3.5% |
| EBITDA | $3.1 billion | 2.8% |
| Capital Expenditures | $1.5 billion | 5.2% |
Strategic initiatives include:
- Fiber-to-the-Home (FTTH) Expansion: Targeting 2.5 million additional fiber-connected homes
- Mobile Virtual Network Operator (MVNO) Strategy: Projected 500,000 new mobile subscribers
- Enterprise Services Growth: Anticipated $450 million in new commercial contracts
| Market Segment | Growth Target | Investment |
|---|---|---|
| Residential Services | 4.2% subscriber increase | $350 million |
| Business Services | 6.1% revenue growth | $250 million |
| Mobile Services | 8.3% line growth | $200 million |
Competitive advantages include advanced network infrastructure, bundled service offerings, and strategic geographic market positioning.
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