Breaking Down Cable One, Inc. (CABO) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and wondering how Cable One, Inc. (CABO) is performing? After a challenging Q4, culminating in a net loss of $105.2 million, compared to a net income of $103.5 million the previous year, is it time to re-evaluate? While full-year revenues for 2024 decreased by 5.9% to $1.58 billion, the company is implementing strategic plans aimed at long-term sustainable growth. Dive in to explore the key financial insights that can help you make informed decisions about Cable One's financial health and future prospects.

Cable One, Inc. (CABO) Revenue Analysis

Cable One, Inc., also known as Sparklight, derives its revenue primarily from residential and business services, including high-speed internet, video, and voice services. A smaller portion comes from advertising sales. Understanding the dynamics of these revenue streams is crucial for investors.

Analyzing Cable One, Inc.'s revenue streams involves looking at several key components:

• Breakdown of primary revenue sources (e.g., products, services, regions)
• Year-over-year revenue growth rate (historical trends, percentage increase/decrease)
• Contribution of different business segments to overall revenue
• Analysis of any significant changes in revenue streams

Let's explore these aspects with available data.

Cable One, Inc. reported total revenues of $1.7431 billion for the fiscal year 2024. Here’s a closer look at the revenue components:

Residential Services: This segment is a significant contributor to Cable One's revenue. It includes:

• High-Speed Internet: Remains a primary driver, catering to increasing demand for bandwidth.
• Video Services: While facing headwinds from cord-cutting, it still contributes substantially.
• Voice Services: A smaller but stable revenue source.

Business Services: Revenue from businesses is an essential component, offering:

• Data Services: High-speed internet and data solutions for businesses.
• Cloud Services: Growing area with increasing demand.

Advertising Sales: This includes local advertising opportunities on their platforms.

In fiscal year 2024, Cable One reported a revenue of $1.7431 billion, representing a decrease of -0.7% compared to the $1.7554 billion reported in fiscal year 2023.

Here is a table summarizing the revenue and its changes over the past few years. The values are in millions of U.S. dollars.

The trend indicates fluctuating growth, with a recent downturn in 2024. Monitoring these trends is vital for assessing the company's financial trajectory.

Understanding Cable One, Inc.'s mission, vision, and core values can provide additional insight into their strategic direction. You can explore more about this here: Mission Statement, Vision, & Core Values of Cable One, Inc. (CABO).

Cable One, Inc. (CABO) Profitability Metrics

Analyzing Cable One, Inc.'s (CABO) profitability involves examining its gross profit, operating profit, and net profit margins to understand the company's financial health and operational efficiency. Trends in these metrics over time offer insights into the company's ability to manage costs and generate profits. Comparing these profitability ratios with industry averages provides a benchmark for assessing Cable One's performance relative to its peers.

Here's a breakdown of key profitability metrics:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). A higher gross profit margin suggests that Cable One is efficient in managing its production costs.
• Operating Profit Margin: This ratio measures the percentage of revenue remaining after deducting both COGS and operating expenses. It reflects the company's efficiency in managing its core business operations.
• Net Profit Margin: This ratio represents the percentage of revenue remaining after deducting all expenses, including interest and taxes. It provides a comprehensive view of the company's overall profitability.

To provide a clearer picture, let's consider sample data (Note: Since real-time financial data is dynamic and specific figures for the fiscal year 2024 are not yet available, the following data is illustrative and should not be considered factual for investment decisions):

Based on this illustrative data, Cable One shows a positive trend in profitability from 2022 to 2023. The increasing gross profit margin suggests improved cost management, while the rising operating and net profit margins indicate enhanced operational efficiency and overall financial performance.

For further insights into Cable One, Inc. (CABO) and its investors, check out: Exploring Cable One, Inc. (CABO) Investor Profile: Who’s Buying and Why?

A detailed analysis of operational efficiency would also include:

• Cost Management: Examining how effectively Cable One controls its operating costs, including administrative and sales expenses.
• Gross Margin Trends: Analyzing the consistency and growth of the gross margin over several periods to identify long-term trends.

Cable One, Inc. (CABO) Debt vs. Equity Structure

Understanding how Cable One, Inc. (CABO) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and recent financing activities.

As of December 31, 2024, Cable One had a total debt of $3.61 billion. This debt is comprised of:

• Long-term debt: $3.57 billion
• Short-term debt: Approximately $22 million (calculated from total debt and long-term debt figures)

In addition to debt, Cable One also relies on equity funding. As of December 2024, the company's total stockholders' equity was $1.885 billion.

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. For Cable One, the debt-to-equity ratio as of December 31, 2024, was approximately 1.92. This ratio is calculated by dividing the total debt ($3.61 billion) by the total stockholders' equity ($1.885 billion).

To provide context, here's a comparison of Cable One's debt-to-equity ratio over time:

• December 2023: 2.02
• September 2024: 1.86

A higher ratio indicates greater financial leverage, which can amplify both profits and losses.

Cable One actively manages its debt through issuances, repayments, and amendments to its credit agreements. Key activities in 2024 include:

• In October 2024, the company amended its existing credit agreement to increase the borrowing capacity of its Revolver by $250.0 million to $1.25 billion.
• The company repaid $200.0 million under the Revolver during 2024, including $50.0 million in the fourth quarter.
• In December 2024, Cable One borrowed $175.0 million under the Revolver in connection with the MBI Amendment.

These actions demonstrate Cable One's proactive approach to managing its debt and maintaining financial flexibility.

Credit ratings provide an independent assessment of a company's creditworthiness. S&P Global Ratings has assigned Cable One a credit rating of 'BB'. However, the outlook was revised to negative from stable in August 2024, reflecting concerns about increasing competition from fiber-to-the-home (FTTH) and fixed wireless access (FWA) providers. In October 2024, S&P Global Ratings lowered the issue-level rating on Cable One's term loan B-4 due in 2028 to 'BB' from 'BB+'.

Cable One strategically balances debt financing with equity funding to support its growth initiatives. The company's debt levels are significant, with a net debt to EBITDA ratio of 4.3 and its EBIT covering interest expense 4.9 times over. While the company has substantial liabilities, it also maintains a cash reserve of $171.3 million as of December 2024.

Here is a summary of Cable One's financial position:

For more insights into Cable One's values, see: Mission Statement, Vision, & Core Values of Cable One, Inc. (CABO).

Cable One, Inc. (CABO) Liquidity and Solvency

When evaluating Cable One, Inc.'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Assessing Cable One, Inc.'s Liquidity:

Analyzing Cable One, Inc.'s liquidity involves examining key financial ratios and statements. Here's a breakdown:

• Current and Quick Ratios: These ratios provide insights into Cable One, Inc.'s ability to cover its short-term liabilities with its short-term assets.
• Analysis of Working Capital Trends: Monitoring the trend of Cable One, Inc.'s working capital (current assets minus current liabilities) helps assess its operational efficiency and short-term financial health.
• Cash Flow Statements Overview: Examining the cash flow statements offers a comprehensive view of Cable One, Inc.'s cash inflows and outflows from operating, investing, and financing activities.

Liquidity Positions:

As of the fiscal year 2024, Cable One, Inc. demonstrates the following liquidity positions:

• Current Ratio: The current ratio stands at 0.7x, calculated by dividing current assets of $335.6 million by current liabilities of $476.8 million. This indicates that Cable One, Inc. has $0.70 of current assets for every $1 of current liabilities.
• Quick Ratio: The quick ratio is 0.6x, derived from quick assets of $278.6 million divided by current liabilities of $476.8 million. This suggests that Cable One, Inc. has $0.60 of liquid assets available to cover each $1 of current liabilities.

Cash Flow Analysis:

A review of Cable One, Inc.'s cash flow statements reveals the following trends:

• Operating Cash Flow: The net cash provided by operating activities is $379.1 million.
• Investing Cash Flow: The net cash used for investing activities is $169.7 million.
• Financing Cash Flow: The net cash used for financing activities totals $195.2 million.

Potential Liquidity Concerns or Strengths:

Cable One, Inc.'s current ratio of 0.7x and quick ratio of 0.6x suggest potential liquidity concerns. These ratios are below 1, indicating that the company's current assets may not fully cover its current liabilities. However, the positive operating cash flow of $379.1 million demonstrates the company's ability to generate cash from its core business operations, which is a strength.

Cable One, Inc. (CABO) Solvency Analysis

Assessing Cable One, Inc.'s solvency involves evaluating its ability to meet its long-term debt obligations. This can be done by examining key financial ratios and metrics:

• Debt-to-Equity Ratio: 2.1x, calculated by dividing total liabilities of $4,056.6 million by total equity of $1,960.6 million.
• Interest Coverage Ratio: 3.5x, computed by dividing earnings before interest and taxes (EBIT) of $228.5 million by interest expenses of $65.3 million.

The debt-to-equity ratio of 2.1x indicates that Cable One, Inc. has more debt than equity, suggesting a higher level of financial leverage. However, the interest coverage ratio of 3.5x shows that the company's earnings sufficiently cover its interest expenses, indicating a manageable debt burden.

Additional Insights

For additional insights into Cable One, Inc.'s core values and strategic direction, refer to Mission Statement, Vision, & Core Values of Cable One, Inc. (CABO).

Cable One, Inc. (CABO) Valuation Analysis

Assessing whether Cable One, Inc. (CABO) is overvalued or undervalued involves analyzing several key financial ratios and indicators. Let's delve into these aspects to provide a comprehensive overview.

Price-to-earnings (P/E) Ratio:

• The P/E ratio for 2024 is reported as 5.91.
• For the years 2025, 2026, and 2027, the estimated P/E ratios are 7.65, 7.71, and 5.22 respectively.
• Another source indicates a P/E ratio of 103.95.
• As of April 08, 2025, the P/E ratio is 8.24.

Price-to-book (P/B) Ratio:

• Cable One has a P/B Ratio of 0.79.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio:

• Cable One's latest twelve months EV/EBITDA is 5.1x.
• The EV/EBITDA for fiscal years ending December 2020 to 2024 averaged 11.8x.
• The EV/EBITDA hit its 5-year low in December 2024 of 5.1x.

Stock Price Trends:

• Over the last 12 months, the stock price has fallen by 35.97%.
• The 52-week high stock price is $437.00, while the 52-week low is $225.94.
• The average stock price for the last 52 weeks is $344.93.
• As of April 17, 2025, the latest closing stock price is $255.05.

Dividend Yield and Payout Ratios:

• The annual dividend yield is 4.63%, with an annual dividend of $11.80.
• The most recent dividend was $2.950, paid on February 18, 2025.
• The dividend payout ratio (TTM) is 468.94%.
• The forward dividend yield is 4.45% as of April 14, 2025.

Analyst Consensus:

• The consensus rating for Cable One is 'Hold'.
• Based on ratings from 4 Wall Street analysts, the consensus is composed of 1 'Buy', 2 'Hold', and 1 'Sell' rating.
• The average 12-month price target is $417.75.
• The highest price target is $650.00, while the lowest is $240.00.

Here is a summary of analyst ratings:

Based on a DCF (Discounted Cash Flow) valuation, Cable One has a DCF Value of $403.06, suggesting it may be undervalued by 37%.

Explore more about Cable One, Inc. (CABO) and its investor profile: Exploring Cable One, Inc. (CABO) Investor Profile: Who’s Buying and Why?

Cable One, Inc. (CABO) Risk Factors

Cable One, Inc. (CABO) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges.

Industry Competition: The telecommunications industry is intensely competitive. Cable One faces competition from:

• Other cable providers
• Telephone companies
• Satellite companies
• Streaming services
• Wireless internet providers

This competition can pressure Cable One to lower prices, increase capital expenditures to improve services, and increase marketing expenses to retain and attract customers. Failure to compete effectively could result in a loss of market share and reduced profitability.

Regulatory Changes: The telecommunications industry is heavily regulated. Changes in regulations can affect:

• Pricing
• Service offerings
• Data privacy
• Net neutrality

Compliance with these regulations can be costly, and new regulations could restrict Cable One's ability to operate profitably. For instance, regulations regarding broadband deployment and pricing could require significant investment or limit revenue potential.

Market Conditions: Economic downturns can reduce consumer spending on Cable One's services. Additionally, changing consumer preferences, such as cord-cutting (canceling cable subscriptions in favor of streaming services), can significantly impact revenue. Cable One must adapt to these changing market conditions to maintain its financial stability.

Operational Risks: Operational risks include:

• Network outages
• Cybersecurity threats
• Equipment failures
• Service disruptions

These events can disrupt service, increase costs, and damage Cable One's reputation. Investing in robust infrastructure and cybersecurity measures is crucial to mitigating these risks.

Financial Risks: Cable One's financial risks include managing its debt and capital expenditures. The company has a significant amount of debt, which could impact its ability to invest in growth opportunities or return capital to shareholders. Rising interest rates could increase the cost of servicing this debt, further straining its financial resources.

Strategic Risks: Strategic risks involve the company's ability to innovate and adapt to technological changes. Failure to invest in new technologies or anticipate market trends could render Cable One's services obsolete. For example, the increasing adoption of 5G and other advanced wireless technologies poses a significant challenge to traditional cable providers.

Mitigation Strategies: Cable One employs several strategies to mitigate these risks:

• Investing in Network Upgrades: Upgrading its network to provide faster and more reliable internet service.
• Diversifying Revenue Streams: Offering bundled services (internet, cable, phone) and expanding into new markets, such as business services.
• Strengthening Cybersecurity: Implementing robust cybersecurity measures to protect against data breaches and service disruptions.
• Advocating for Favorable Regulations: Engaging with policymakers to advocate for regulations that support its business model.

These mitigation strategies are essential for Cable One to navigate the complex and evolving telecommunications landscape and maintain its financial health.

For more insights into Cable One, Inc. (CABO), consider exploring: Mission Statement, Vision, & Core Values of Cable One, Inc. (CABO).

Cable One, Inc. (CABO) Growth Opportunities

Cable One, Inc. (CABO) faces a dynamic landscape with several growth drivers, strategic initiatives, and competitive advantages shaping its future trajectory. Understanding these elements is crucial for investors assessing the company's potential.

Key growth drivers for Cable One, Inc. (CABO) include:

• Product Innovations: Continuously introducing and upgrading services, such as high-speed internet and enhanced video offerings, to meet evolving customer demands.
• Market Expansions: Extending the company's footprint into new geographic areas and customer segments, potentially through acquisitions or organic growth.
• Acquisitions: Strategic acquisitions of smaller cable or broadband providers to expand market share and service areas.

Future revenue growth projections and earnings estimates will depend on Cable One, Inc.'s (CABO) ability to capitalize on these growth drivers. Investors should monitor analyst reports and company guidance for the most up-to-date financial forecasts. Keep an eye on Mission Statement, Vision, & Core Values of Cable One, Inc. (CABO).

Strategic initiatives and partnerships that may propel future growth include:

• Technology Upgrades: Investing in network infrastructure to support higher bandwidth and more reliable service delivery.
• Partnerships: Collaborating with content providers or technology companies to offer bundled services or innovative solutions.
• Customer Experience: Enhancing customer service and support to improve retention rates and attract new subscribers.

Cable One, Inc. (CABO) possesses several competitive advantages that position it for sustained growth:

• Established Infrastructure: A well-developed network infrastructure provides a strong foundation for delivering services.
• Local Presence: Strong local presence and brand recognition in its service areas foster customer loyalty.
• Scalability: The ability to scale its operations and services to meet increasing demand efficiently.

To illustrate potential future revenue growth, consider a hypothetical scenario based on current market trends and Cable One, Inc.'s (CABO) strategic initiatives. Note that these are illustrative and not based on official company forecasts:

These projections are contingent on various factors, including market conditions, competition, and the successful execution of Cable One, Inc.'s (CABO) growth strategies.