Breaking Down Altice USA, Inc. (ATUS) Financial Health: Key Insights for Investors

Breaking Down Altice USA, Inc. (ATUS) Financial Health: Key Insights for Investors

US | Communication Services | Telecommunications Services | NYSE

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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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