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Altice Usa (ATUS)
NYSE:ATUS
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Altice Usa
(NYSE:ATUS)
52Neutral
Positive Factors
Mobile Strategy
An improved mobile strategy has led to a higher mobile net add forecast, given increased company focus and better trends.
Operational Improvements
The network upgrades and rebuilding of the care and management teams are starting to have a noticeable impact.
Revenue Performance
Altice USA reported better than forecast revenue, indicating positive financial performance.
Negative Factors
Execution Risk
ATUS still has significant execution risk as its turnaround efforts are challenged by several factors, including growing broadband competition and significant leverage.
Financial Results
ATUS reported mostly lower than projected financial and operating results, with EBITDA and FCF much lighter than projected.
Leverage Concerns
The company remains challenged by its high leverage at 7.4x for CSC Holdings, especially in consideration of declining EBITDA, fiber investments and still elevated capital expenditures.
Altice Usa (ATUS) vs. S&P 500 (SPY)
Market Cap
$1.24B
Dividend YieldN/A
Average Volume (3M)3.47M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth-3.06%
EPS Growth-290.86%
CountryUS
Employees10,900
SectorCommunication Services
Sector Strength82
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.16
Shares Outstanding283,502,200
10 Day Avg. Volume3,165,240
30 Day Avg. Volume3,474,948
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap21.16
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.23
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.57Price Target Upside-1.91% Downside
Rating ConsensusHold
Number of Analyst Covering8
Altice Usa Business Overview & Revenue Model
Company DescriptionAltice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company's video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York.
How the Company Makes MoneyAltice USA generates revenue through several key streams. The primary revenue source is its broadband and video services, where customers pay for subscriptions to high-speed internet and television packages. The company also earns money through its mobile services, offering competitive plans and bundles to enhance customer connectivity. Additionally, Altice USA benefits from digital advertising revenues, leveraging its media assets to provide targeted advertising solutions. Significant partnerships with content providers and network infrastructure investments further enhance its service offerings and customer reach, contributing to its overall earnings.
Altice Usa Financial Statement Overview
Summary
Altice USA faces financial challenges with declining revenue and profitability, high leverage, and negative equity. While cash flow management shows some resilience, the overall financial health suggests a need for strategic restructuring or growth initiatives to stabilize and improve financial performance.Income Statement
The TTM (Trailing-Twelve-Months) shows a decline in revenue with a negative net income, indicating profitability issues. Gross and EBIT margins remain stable, but the net profit margin has deteriorated significantly compared to previous periods. Revenue growth has been negative, pointing to potential challenges in market penetration or customer retention.―
Balance Sheet
The company has a negative stockholders' equity, which is a significant concern. The high debt-to-equity ratio indicates leverage risk, and ROE is negative due to losses, which impacts potential returns for investors. The equity ratio is unfavorable, reflecting financial instability.45
Cash Flow
Operating cash flow remains positive, although it has declined from previous years. The free cash flow shows some growth, yet the operating cash flow to net income ratio is high due to negative net income, indicating reliance on cash flow management over profit.―
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 9.24B | 9.65B | 10.09B | 9.89B | 9.76B | Gross Profit |
| 6.21B | 6.44B | 6.71B | 6.55B | 6.46B | EBIT |
| 1.70B | 1.80B | 2.52B | 2.12B | 1.82B | EBITDA |
| 3.40B | 3.62B | 4.36B | 4.02B | 3.99B | Net Income Common Stockholders |
| 53.20M | 194.56M | 990.31M | 436.18M | 138.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 302.06M | 305.48M | 305.48M | 195.71M | 278.42M | Total Assets |
| 31.92B | 33.66B | 33.66B | 33.22B | 33.38B | Total Debt |
| 25.39B | 26.85B | 26.85B | 26.78B | 26.98B | Net Debt |
| 25.04B | 26.54B | 26.54B | 26.59B | 26.70B | Total Liabilities |
| 32.36B | 34.17B | 34.17B | 34.09B | 34.58B | Stockholders Equity |
| -422.18M | -475.21M | -475.21M | -819.79M | -1.14B |
| Cash Flow | Free Cash Flow | |||
| 121.59M | 452.62M | 452.62M | 1.62B | 1.91B | Operating Cash Flow |
| 1.83B | 2.37B | 2.37B | 2.85B | 2.98B | Investing Cash Flow |
| -1.71B | -1.92B | -1.92B | -1.57B | -1.22B | Financing Cash Flow |
| -122.59M | -335.91M | -335.91M | -1.36B | -2.18B |
Altice Usa Technical Analysis
Positive
2.62
Price Trends
2.51
Positive
2.60
Positive
2.42
Positive
Market Momentum
0.04
Negative
55.92
Neutral
78.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATUS, the sentiment is Positive. The current price of 2.62 is above the 20-day moving average (MA) of 2.43, above the 50-day MA of 2.51, and above the 200-day MA of 2.42, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 78.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATUS.
Altice Usa Risk Analysis
Altice Usa disclosed 24 risk factors in its most recent earnings report. Altice Usa reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Altice Usa Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $112.86B | 11.15 | 36.94% | ― | 0.93% | 16.06% | |
75 Outperform | $128.78B | 8.46 | 18.57% | 3.68% | 1.33% | 7.69% | |
63 Neutral | $3.23B | 7.77 | 42.31% | ― | 8.27% | ― | |
60 Neutral | $13.50B | 7.33 | -2.74% | 3.80% | 2.09% | -39.49% | |
54 Neutral | $1.03B | 59.21 | -1.12% | 6.76% | -6.30% | -109.90% | |
53 Neutral | $3.64B | ― | -0.97% | 0.47% | -5.14% | 78.63% | |
52 Neutral | $1.24B | ― | 21.93% | ― | -3.06% | -290.86% |
* Communication Services Sector Average
Performance Comparison
ATUS
Altice Usa
2.62
0.46
21.30%
CHTR
Charter Communications
401.73
126.18
45.79%
CMCSA
Comcast
34.25
-3.78
-9.94%
CABO
Cable ONE
164.99
-215.60
-56.65%
TDS
Telephone & Data Systems
34.58
14.56
72.73%
VEON
VEON
46.84
21.27
83.18%
Altice Usa Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -1.13%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a company making progress in its strategic goals, notably in fiber and mobile growth, churn reduction, and operational efficiencies. However, these positives are countered by significant revenue decline, broadband subscriber losses, negative free cash flow, and unresolved debt negotiations, resulting in a mixed outlook.Q1-2025 Updates
Positive Updates
All-Time High Fiber Performance
Achieved 69,000 fiber net additions, ending the quarter with over 600,000 fiber customers, reaching 20% penetration of the fiber network.
Mobile Growth and Milestone
Accelerated mobile growth with 49,000 mobile line net additions and surpassed the milestone of 500,000 mobile lines.
Churn Reduction
Quarterly churn reached the lowest levels in 3 years, with annualized broadband churn improving by 90 basis points year-over-year in Q1.
Operational Efficiency Initiatives
Reduced service calls by over 1 million and truck rolls by 280,000 in the last 12 months through AI and automation.
Improvements in Customer Experience
Recognized by the global Stevie Awards for excellence in customer service and customer service transformation.
Optimized Programming Agreements
Successfully navigated programming negotiations with minimal disruption, retaining 99.8% of impacted customers.
Negative Updates
Revenue Decline
Total revenue of approximately $2.2 billion declined 4.4% year-over-year, driven by residential declines of 5.7%.
Broadband Subscriber Losses
Broadband subscriber net losses of 37,000, influenced by competitive pressures and programming interruptions.
Negative Free Cash Flow
Free cash flow in Q1 was negative $169 million, primarily driven by increased cash interest.
Debt Negotiation Challenges
Negotiations with bondholders concluded without reaching an agreement, leaving long-term debt concerns unaddressed.
Company Guidance
During the Altice USA Q1 2025 earnings call, the company provided detailed guidance on its strategic initiatives aimed at stabilizing performance and driving growth. Altice USA expects to deliver approximately $3.4 billion in adjusted EBITDA for the full year 2025, with revenue projected between $8.6 billion and $8.7 billion. The company reported a sequential improvement in broadband subscriber net losses to 37,000, with fiber net additions reaching an all-time high of 69,000, leading to over 600,000 fiber customers and 20% penetration of its fiber network. Mobile growth continued with 49,000 mobile line net additions, surpassing 500,000 total mobile lines. The company's strategic goals include enhancing marketing effectiveness, optimizing programming agreements, and expanding digital tools to improve customer experience. Additionally, Altice USA is pursuing operational efficiencies, with a capital expenditure forecast of approximately $1.2 billion for 2025, while maintaining a focus on high-return projects and network investments. The company also highlighted progress in reducing churn, which reached the lowest levels in three years, and improvement in annualized broadband churn by 90 basis points year-over-year in Q1.Altice Usa Corporate Events
Executive/Board Changes
Altice USA Approves Salary Increases for Top Executives
Neutral
Feb 10, 2025
On February 4, 2025, Altice USA’s Board of Directors approved significant salary increases for CEO Dennis Mathew and CFO Marc Sirota. Effective January 1, 2025, Mathew’s salary will be $1,550,000 with additional incentives, while Sirota will receive a base salary of $650,000 and a target cash incentive award at 150% of his salary.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.