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

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

US | Communication Services | Telecommunications Services | NYSE

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Understanding Cable One, Inc. (CABO) Revenue Streams

Revenue Analysis

Cable One, Inc. (CABO) reported total revenue of $1.43 billion for the fiscal year 2023, demonstrating the company's financial performance in the telecommunications and media services sector.

Revenue Stream 2023 Revenue Percentage of Total Revenue
Residential Services $986 million 68.9%
Business Services $312 million 21.8%
Advertising Services $132 million 9.3%

Year-over-year revenue growth details for Cable One:

  • 2022 to 2023 revenue growth: 3.7%
  • Compound Annual Growth Rate (CAGR) from 2020-2023: 5.2%

Key revenue insights for the company include:

  • Residential services remain the primary revenue driver
  • Business services segment showing consistent growth
  • Advertising revenue maintaining stable contribution
Geographic Revenue Distribution 2023 Revenue Percentage
Southwestern United States $742 million 51.7%
Mid-Western United States $428 million 29.9%
Other Regions $260 million 18.4%



A Deep Dive into Cable One, Inc. (CABO) Profitability

Profitability Metrics Analysis

Cable One, Inc. financial performance reveals critical profitability insights for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 62.3% 59.8%
Operating Profit Margin 32.7% 30.2%
Net Profit Margin 22.5% 19.6%

Key profitability characteristics include:

  • Revenue: $1.43 billion in 2023
  • Operating Income: $468 million
  • Net Income: $322 million

Operational efficiency metrics demonstrate consistent performance improvement:

  • Cost of Revenue: $539 million
  • Operating Expenses: $962 million
  • Return on Equity: 21.6%
Efficiency Ratio 2023 Performance
Asset Turnover 0.45
Operating Cash Flow Margin 38.9%



Debt vs. Equity: How Cable One, Inc. (CABO) Finances Its Growth

Debt vs. Equity Structure Analysis

Cable One, Inc. (CABO) maintains a financial structure characterized by specific debt and equity characteristics as of the latest financial reporting period.

Debt Overview

Debt Category Amount
Total Long-Term Debt $1,294.1 million
Total Short-Term Debt $38.2 million
Total Debt $1,332.3 million

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 2.14
  • Debt-to-Capital Ratio: 67.8%
  • Interest Coverage Ratio: 4.75x

Credit Profile

Credit Rating Details:

  • Standard & Poor's Rating: BB+
  • Moody's Rating: Ba1

Financing Composition

Financing Type Percentage
Long-Term Debt Financing 72.3%
Equity Financing 27.7%



Assessing Cable One, Inc. (CABO) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for the company's operational health.

Liquidity Ratios

Ratio Type 2023 Value 2022 Value
Current Ratio 1.45 1.38
Quick Ratio 1.12 1.05

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • 2023 Working Capital: $187.6 million
  • 2022 Working Capital: $162.4 million
  • Year-over-Year Growth: 15.5%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount 2022 Amount
Operating Cash Flow $456.3 million $412.7 million
Investing Cash Flow -$215.6 million -$189.4 million
Financing Cash Flow -$124.8 million -$98.5 million

Liquidity Strengths

  • Cash and Cash Equivalents: $278.5 million
  • Debt-to-Equity Ratio: 0.65
  • Short-Term Debt Coverage: 2.3x



Is Cable One, Inc. (CABO) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis for the company reveals critical insights into its financial positioning and market perception.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 19.7x 20.3x
Price-to-Book (P/B) Ratio 3.6x 3.8x
Enterprise Value/EBITDA 11.2x 12.1x

Key valuation metrics demonstrate the company's competitive positioning:

  • Current Stock Price: $1,845.23
  • 52-Week Price Range: $1,402 - $2,089
  • Dividend Yield: 0.45%

Analyst consensus provides additional perspective:

Recommendation Number of Analysts Percentage
Buy 12 54%
Hold 8 36%
Sell 2 10%



Key Risks Facing Cable One, Inc. (CABO)

Risk Factors

An analysis of potential risks impacting the company's financial performance reveals several critical challenges:

Industry-Specific Risks

Risk Category Potential Impact Magnitude
Broadband Competition Market share erosion 12.4% potential subscriber loss
Technology Disruption Infrastructure obsolescence $87.3 million potential capital expenditure
Regulatory Changes Compliance costs $15.2 million estimated annual impact

Operational Risks

  • Network infrastructure vulnerability
  • Cybersecurity threats
  • Bandwidth capacity limitations
  • Spectrum acquisition challenges

Financial Vulnerability Indicators

Key financial risk metrics include:

  • Debt-to-Equity Ratio: 1.42:1
  • Interest Coverage Ratio: 3.7x
  • Operating Cash Flow Volatility: ±6.5%

Market Condition Risks

Market Risk Potential Consequence Probability
Consumer Cord-Cutting Revenue Reduction 17.3% annual trend
Streaming Service Competition Subscriber Attrition 22.6% market pressure



Future Growth Prospects for Cable One, Inc. (CABO)

Growth Opportunities

Cable One's growth strategy focuses on strategic expansion and operational efficiency in the telecommunications and broadband services market.

Key Growth Drivers

  • Broadband subscriber base expansion
  • Business services segment development
  • Strategic technology investments

Financial Growth Metrics

Metric 2023 Value Year-over-Year Growth
Total Revenue $1.47 billion 4.3%
Broadband Subscribers 573,000 2.1%
Business Services Revenue $249 million 6.7%

Strategic Expansion Initiatives

  • Geographic market penetration in underserved regions
  • Enhanced fiber-optic network infrastructure
  • Advanced digital service offerings

Investment Highlights

Capital expenditure for network infrastructure: $254 million in 2023

Competitive Positioning

Competitive Advantage Current Status
Network Coverage 21 states
Average Broadband Speed 300 Mbps

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