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Wideopenwest Inc (WOW)
NYSE:WOW

Wideopenwest (WOW) AI Stock Analysis

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Wideopenwest

(NYSE:WOW)

Rating:48Neutral
Price Target:
$4.50
▲( 6.38% Upside)
WideOpenWest's score reflects solid operational efficiency but is dragged down by revenue declines and net losses. High leverage and negative free cash flow exacerbate financial risks. Technical indicators suggest bearish momentum, while valuation metrics are unattractive due to net losses. The earnings call shows potential through cost management and expansion but is offset by subscriber losses.

Wideopenwest (WOW) vs. SPDR S&P 500 ETF (SPY)

Wideopenwest Business Overview & Revenue Model

Company DescriptionWideOpenWest, Inc. provides high speed data, cable television, and digital telephony services to residential and business services customers in the United States. Its video services include basic cable services that comprise local broadcast television and local community programming; digital cable services; WOW tv+ that offers traditional cable video and cloud DVR functionality, voice remote with Google Assistant, and Netflix integration along with access to various streaming services and apps through the Google Play Store; and ultra-video products, as well as offers commercial-free movies, TV shows, sports, and other special event entertainment programs. The company's telephony services consist of local and long-distance telephone services; business telephony and data services include fiber based, office-to-office metro Ethernet, session initiated protocol trunking, colocation infrastructure, cloud computing, managed backup, and recovery services. As of December 31, 2021, it served approximately 1.9 million home and business, and 532,900 customers in the states of Alabama, Florida, Georgia, Michigan, South Carolina, and Tennessee. The company was formerly known as WideOpenWest Kite, Inc. and changed its name to WideOpenWest, Inc. in March 2017. WideOpenWest, Inc. was founded in 2001 and is based in Englewood, Colorado.
How the Company Makes MoneyWOW generates revenue primarily through subscription fees for its broadband internet, cable television, and phone services. The company offers various packages and pricing tiers, allowing customers to choose bundled services or individual options, catering to different consumer preferences and budgets. Additionally, WOW may earn from advertising on its cable network and by providing business services, including enterprise-level broadband solutions. Key revenue streams include monthly subscription fees, equipment rental charges, and potentially advertising revenue. While specific partnerships may enhance service delivery or product offerings, WOW's primary earnings are driven by its competitive pricing and service bundling strategies.

Wideopenwest Financial Statement Overview

Summary
Wideopenwest faces significant financial challenges, with declining revenues and persistent losses. The balance sheet is weak with high debt levels, and cash flow generation is insufficient to cover capital expenditures, indicating a need for restructuring.
Income Statement
45
Neutral
Wideopenwest has experienced declining revenues over the years, with total revenue dropping from $1.15 billion in 2020 to $630.9 million in 2024. The company has consistently reported negative net income, indicating persistent challenges in profitability. Gross profit margin has also decreased significantly, reflecting reduced operational efficiency. Despite an improvement in EBIT and EBITDA margins in 2024 compared to 2023, the company's financial performance remains weak.
Balance Sheet
50
Neutral
The balance sheet shows high leverage with a debt-to-equity ratio worsening from negative to positive due to declining equity. The equity ratio remains low, highlighting a weak capital structure. However, a slight improvement in stockholders' equity in 2024 compared to 2023 indicates some progress in addressing financial stability. The company's total assets have decreased, further emphasizing the need for financial restructuring.
Cash Flow
48
Neutral
Operating cash flow has shown some resilience with an increase in 2024, but free cash flow remains negative, indicating challenges in generating surplus cash after capital expenditures. The free cash flow to net income ratio indicates inefficiencies in converting net income into cash. The company must focus on improving its cash generation capabilities to sustain operations and reduce dependency on external financing.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
630.90M686.70M704.90M725.70M1.15B
Gross Profit
374.10M385.70M377.90M349.30M578.20M
EBIT
6.50M-315.00M50.90M14.30M151.10M
EBITDA
245.40M-103.30M209.60M174.10M221.70M
Net Income Common Stockholders
-58.80M-287.70M-2.50M-68.60M14.40M
Balance SheetCash, Cash Equivalents and Short-Term Investments
38.80M23.40M31.00M193.20M12.40M
Total Assets
1.51B1.51B1.72B1.91B2.49B
Total Debt
1.04B956.80M759.20M760.30M2.29B
Net Debt
1.00B933.40M728.20M567.10M2.28B
Total Liabilities
1.30B1.26B1.14B1.34B2.70B
Stockholders Equity
208.80M258.20M575.10M570.80M-212.40M
Cash FlowFree Cash Flow
-52.10M-133.80M-133.40M-33.70M43.30M
Operating Cash Flow
163.70M135.10M33.80M174.00M277.40M
Investing Cash Flow
-215.60M-268.80M-165.80M1.56B-234.30M
Financing Cash Flow
67.30M126.10M-30.20M-1.55B-51.70M

Wideopenwest Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.23
Price Trends
50DMA
4.50
Negative
100DMA
4.53
Negative
200DMA
4.88
Negative
Market Momentum
MACD
-0.06
Positive
RSI
41.28
Neutral
STOCH
21.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOW, the sentiment is Negative. The current price of 4.23 is below the 20-day moving average (MA) of 4.37, below the 50-day MA of 4.50, and below the 200-day MA of 4.88, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 41.28 is Neutral, neither overbought nor oversold. The STOCH value of 21.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WOW.

Wideopenwest Risk Analysis

Wideopenwest disclosed 34 risk factors in its most recent earnings report. Wideopenwest reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Wideopenwest Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$2.76B23.9818.01%2.19%6.64%403.10%
63
Neutral
$3.75B9.0442.31%8.27%
60
Neutral
$14.12B6.43-3.57%3.69%2.49%-35.43%
51
Neutral
$3.94B-78.94%-7.86%97.11%
50
Neutral
$3.37B-20.95%3.53%3.23%
WOWOW
48
Neutral
$356.43M-26.19%-8.37%78.45%
41
Neutral
$2.26B102.75-59.30%8.63%-3.47%-115.75%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WOW
Wideopenwest
4.23
-0.47
-10.00%
LUMN
Lumen Technologies
3.72
2.45
192.91%
CCOI
Cogent Comms
46.89
-8.69
-15.64%
IRDM
Iridium Communications
25.22
-4.16
-14.16%
LBTYA
Liberty Global A
9.59
1.23
14.71%
VEON
VEON
52.65
27.12
106.23%

Wideopenwest Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -2.53%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong achievements in adjusted EBITDA and ARPU, as well as successful fiber expansion in greenfield markets. However, this was offset by declines in high-speed data revenue, total revenue, and HSD subscribers, along with a significant drop in traditional video subscribers.
Q1-2025 Updates
Positive Updates
Greenfield Market Expansion
The company passed an additional 13,700 homes in greenfield markets, bringing the total to 75,600 with a penetration rate of 16.3%.
Record Adjusted EBITDA Margin
Adjusted EBITDA increased 13.8% year-over-year to $76.7 million with a record adjusted EBITDA margin of 51.1%.
High ARPU Achievement
ARPU increased 3.7% year-over-year to a record high of $75.
Successful Fiber Expansion Strategy
The company's fiber expansion strategy is showing strong success, especially in greenfield markets.
Negative Updates
Decrease in High-Speed Data Revenue
High-speed data revenue decreased 0.8% year-over-year to $105.4 million.
Decline in Total Revenue
Total revenue for the quarter decreased 7.1% to $150 million due to drops in video and telephony revenue.
Decrease in HSD Subscribers
The company lost a total of 4,500 HSD subscribers during the quarter.
Traditional Video Business Decline
Traditional video subscribers dropped 38% from the same period last year, now at 48,900 subscribers.
Company Guidance
During the WideOpenWest Q1 2025 earnings call, guidance for the second quarter was provided by CFO John Rego. The company anticipates high-speed data (HSD) revenue to be between $101 million and $104 million, with total revenue ranging from $141 million to $144 million. Adjusted EBITDA is expected to be within $65 million to $68 million. The company projects HSD net adds to be between a negative 6,500 and a negative 4,500. CEO Teresa Elder highlighted ongoing momentum in greenfield markets and strong cost management, with first quarter results showing an adjusted EBITDA margin of 51.1% and ARPU increasing by 3.7% year-over-year to $75. Additionally, WOW! plans to spend $60 million to $70 million on greenfield expansions in 2025, despite a slower start due to weather-related delays.

Wideopenwest Corporate Events

Shareholder Meetings
Wideopenwest Stockholders Approve Key Governance Decisions
Neutral
May 12, 2025

WideOpenWest, Inc. held its annual meeting of stockholders on May 8, 2025, where key decisions were made regarding the company’s governance and financial oversight. During the meeting, stockholders voted on the re-election of three Class II directors, the ratification of BDO USA, P.C. as the independent registered public accounting firm for 2025, and a non-binding advisory vote on executive compensation. The results showed strong support for the re-election of directors and the ratification of the accounting firm, while the executive compensation proposal also received approval.

The most recent analyst rating on (WOW) stock is a Buy with a $7.50 price target. To see the full list of analyst forecasts on Wideopenwest stock, see the WOW Stock Forecast page.

Business Operations and Strategy
WideOpenWest Investigates Suspicious Activity on Cloud Platform
Neutral
Mar 28, 2025

WideOpenWest, Inc. recently identified suspicious activity on its back-office cloud platform and promptly initiated an incident response, disabling access to the affected application. The ongoing investigation has not revealed any material impact on the company’s operations or financial conditions, and no sensitive personal information appears to have been accessed by external parties.

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.