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Cable ONE
(NYSE:CABO)
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Rating:41Neutral
Price Target:
$8.00
▼(-69.63% Downside)
Action:Reiterated
Date:10/16/26
CABO scores low primarily due to sharp TTM financial deterioration (deep losses, negative EBITDA, and negative operating/free cash flow) combined with elevated leverage and shrinking equity. Technicals reinforce the risk, with the stock far below key moving averages and negative momentum; oversold readings alone are insufficient to offset the prevailing downtrend. The earnings call and corporate actions show active remediation efforts and liquidity management, but near-term subscriber and revenue declines remain significant headwinds.
Positive Factors
Multi-Gig Network Readiness
Broad multi-gig coverage strengthens Cable ONE’s core connectivity proposition and gives it capacity to offer higher-speed services across its footprint. Achieving this through disciplined, capital-efficient investment may support retention, premium product adoption, and competitiveness over the next several quarters.
Negative Factors
Subscriber and Revenue Contraction
Broadband subscriber losses and declining residential data revenue directly pressure Cable ONE’s recurring revenue base. Persistent churn can weaken scale economics, reduce operating leverage, and make it harder for network investments and new products to translate into sustained growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-Gig Network Readiness
Broad multi-gig coverage strengthens Cable ONE’s core connectivity proposition and gives it capacity to offer higher-speed services across its footprint. Achieving this through disciplined, capital-efficient investment may support retention, premium product adoption, and competitiveness over the next several quarters.
Read all positive factors
Cable ONE (CABO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.02M
Dividend Yield4.07%
Average Volume (3M)630.38K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth-6.54%
EPS Growth-108.97%
CountryUS
Employees2,592
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-184.08
Shares Outstanding5,673,925
10 Day Avg. Volume1,163,016
30 Day Avg. Volume630,385
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.44
Price to Sales (P/S)0.42
P/FCF Ratio2.32
Enterprise Value/Market Cap78.17
Enterprise Value/Revenue2.22
Enterprise Value/Gross Profit3.96
Enterprise Value/Ebitda-8.87
Forecast
1Y Price Target
$62.00Price Target Upside135.38% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)-137.89
Revenue Forecast (FY)$1.42B
Cable ONE Business Overview & Revenue Model
Company Description
Cable One, Inc., through its various subsidiaries, delivers a full spectrum of data, video, and voice communication services across the United States. For individual households, the company provides internet connectivity, including solutions desig...
How the Company Makes Money
Cable ONE makes money primarily by selling subscription-based connectivity services to residential and business customers. Its core revenue stream is broadband internet service, where customers pay recurring monthly fees for tiered speed plans and...
Cable ONE Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Negative
The call communicated meaningful operational initiatives and progress — network multi‑gig readiness, improved acquisition mix (digital and door-to-door), early mobile traction, focused product launches (UCaaS), and active debt reduction — but these positives were outweighed by near-term financial and subscriber challenges: a 17k broadband customer loss, total revenue down ~8.5% year-over-year, a notable decline in adjusted EBITDA and adjusted EBITDA less CapEx, expense ratios that rose as a percent of revenue, and non-cash impairment charges. Management emphasized retention work and disciplined capital allocation as remediation steps, but the near-term trends are materially negative.Positive Updates
Network and Infrastructure Upgrade
Essentially all of the network is gig-capable today and the vast majority of customers will be served by multi-gig capable infrastructure by year-end, achieved via disciplined, capital-efficient investments rather than a major new capital program.
Negative Updates
Significant Subscriber Losses
Residential broadband lost 17,000 customers in the quarter as elevated churn continued to pressure subscriber results; management identified improving retention as the top operational priority.
Read all updates
Q2-2026 Updates
Positive
Negative
Network and Infrastructure Upgrade
Essentially all of the network is gig-capable today and the vast majority of customers will be served by multi-gig capable infrastructure by year-end, achieved via disciplined, capital-efficient investments rather than a major new capital program.
Read all positive updates
Company Guidance
Management reiterated that full‑year CapEx is expected to remain consistent with the prior year (Q2 CapEx was $74.0M, or 42.7% of adjusted EBITDA), reported Q2 adjusted EBITDA of $173.5M (49.7% of revenues) and adjusted EBITDA less CapEx of $99.5M, and said the vast majority of customers will be served by multi‑gig capable infrastructure by year‑end; they flagged Q2 residential broadband net losses of 17,000 customers, residential data revenue down $16.7M (‑7.3% YoY) with sequential ARPU improvement, and reaffirmed a long‑term penetration opportunity meaningfully above current levels (cited ~34%); on the balance sheet they ended Q2 with $166.2M cash, $3.06B gross debt (term loans $1.66B, revolver draws $550M, unsecured notes $503M, convertibles $345M), $700M of undrawn capacity on a $1.25B revolver, reduced debt by ~$63M in the quarter and nearly $130M YTD, reported a 4.2x net leverage (LQA) and said they will pursue leverage reduction, evaluate financing alternatives and potential monetization of equity investments, while continuing disciplined capital allocation and investments in network, in‑home tech/security, AI/automation and a nascent mobile offering (launched in March) to support acquisition and retention.Cable ONE Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
28
Negative
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.44B | 1.50B | 1.58B | 1.68B | 1.71B | 1.61B |
| Gross Profit | 809.67M | 770.77M | 1.16B | 1.24B | 1.24B | 1.15B |
| EBITDA | -361.34M | 24.20M | 723.93M | 924.43M | 849.87M | 789.60M |
| Net Income | -1.05B | -356.46M | 14.48M | 224.62M | 213.06M | 291.82M |
Balance Sheet | ||||||
| Total Assets | 4.62B | 5.59B | 6.53B | 6.76B | 6.89B | 6.95B |
| Cash, Cash Equivalents and Short-Term Investments | 166.19M | 152.77M | 153.63M | 190.29M | 215.15M | 388.80M |
| Total Debt | 3.05B | 3.19B | 3.60B | 3.66B | 3.82B | 3.85B |
| Total Liabilities | 4.30B | 4.15B | 4.73B | 4.95B | 5.15B | 5.16B |
| Stockholders Equity | 326.38M | 1.43B | 1.80B | 1.81B | 1.74B | 1.79B |
Cash Flow | ||||||
| Free Cash Flow | 247.56M | 274.37M | 377.77M | 292.72M | 327.30M | 319.81M |
| Operating Cash Flow | 541.13M | 563.33M | 664.13M | 663.17M | 738.04M | 704.34M |
| Investing Cash Flow | -125.02M | -154.18M | -564.45M | -341.90M | -448.27M | -2.47B |
| Financing Cash Flow | -402.80M | -410.01M | -136.34M | -346.13M | -463.43M | 1.58B |
Cable ONE Technical Analysis
Negative
26.34
Price Trends
20.60
Negative
32.38
Negative
61.77
Negative
Market Momentum
-3.37
Negative
29.26
Positive
5.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CABO, the sentiment is Negative. The current price of 26.34 is above the 20-day moving average (MA) of 12.54, above the 50-day MA of 20.60, and below the 200-day MA of 61.77, indicating a bearish trend. The MACD of -3.37 indicates Negative momentum. The RSI at 29.26 is Positive, neither overbought nor oversold. The STOCH value of 5.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CABO.
Cable ONE Risk Analysis
Cable ONE disclosed 37 risk factors in its most recent earnings report. Cable ONE 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
Cable ONE Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $77.72B | 7.11 | 12.04% | 6.03% | 0.58% | -48.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $19.39B | 2.82 | 30.43% | ― | -1.50% | 4.45% | |
54 Neutral | $3.65B | 7.98 | 8.65% | 30.71% | -73.81% | ― | |
49 Neutral | $570.26M | -12.72 | -4.77% | 1.07% | 5.01% | -23.53% | |
41 Neutral | $41.02M | -0.04 | -89.91% | 4.07% | -6.54% | -108.97% | |
41 Neutral | $344.28M | -0.09 | 127.36% | 11.54% | -4.36% | -1695.11% |
* Communication Services Sector Average
CABO
Cable ONE
7.23
-159.50
-95.66%
CHTR
Charter Communications
110.11
-141.40
-56.22%
CMCSA
Comcast
21.90
-4.39
-16.71%
SHEN
Shenandoah Telecommunications Co
10.30
-2.33
-18.48%
TDS
Telephone & Data Systems
33.90
-4.73
-12.25%
OPTU
Optimum Communications Inc Class A
0.90
-1.51
-62.57%
Cable ONE Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Cable ONE Extends Closing Timeline for MBI Acquisition
Neutral
Oct 2, 2026
Cable One disclosed that on January 3, 2026 it entered into a purchase agreement to acquire the remaining equity interests in Mega Broadband Investments Holdings it does not already own, consolidating full ownership of the broadband asset. The com...
Business Operations and StrategyPrivate Placements and Financing
Cable One Draws Revolving Credit to Strengthen Liquidity
Positive
Sep 22, 2026
On September 17 and 18, 2026, Cable One, Inc. drew $700 million from its existing $1.25 billion revolving credit facility under a 2023 credit agreement to bolster cash on hand. The move was aimed at preserving financial flexibility ahead of the fa...
Business Operations and StrategyExecutive/Board Changes
Cable ONE Appoints Veteran Executive as New COO
Positive
Aug 14, 2026
On August 14, 2026, Cable One announced the appointment of veteran telecom executive Heather McCallion as chief operating officer, with her start date expected on or around August 24, 2026. McCallion brings more than 25 years of experience at comp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.