Wideopenwest (WOW) AI Stock Analysis

• Market Cap: $439.69M
• Dividend Yield: N/A
• Average Volume (3M): 817.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -8.67%
• EPS Growth: 63.35%
• Country: US
• Employees: 1,320
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.22
• Shares Outstanding: 85,709,410
• 10 Day Avg. Volume: 397,095
• 30 Day Avg. Volume: 817,964
• PEG Ratio: 0.09
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -7.79
• Enterprise Value/Market Cap: 3.14
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 4.37
• Enterprise Value/Ebitda: 6.44
• 1Y Price Target: $5.10
• Price Target Upside: -0.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: $5.00 ▼(-2.53% Downside)

Wideopenwest's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue and high leverage. While there are some positive technical indicators and strategic advancements highlighted in the earnings call, these are not sufficient to offset the financial challenges and valuation concerns.

Positive Factors

Greenfield Market Expansion

Expanding into greenfield markets increases potential customer base and revenue opportunities, supporting long-term growth and market presence.

Record High ARPU

Higher ARPU indicates successful pricing strategies and increased demand for premium services, enhancing revenue per customer and profitability.

Adjusted EBITDA Growth

Slight growth in adjusted EBITDA and strong margins reflect operational efficiency and cost management, supporting financial stability.

Negative Factors

Declining Revenue

A significant decline in total revenue indicates challenges in maintaining sales growth, which could impact long-term financial health.

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, affecting long-term sustainability.

Subscriber Loss

Loss of subscribers, especially in core services, suggests competitive pressures and challenges in customer retention, impacting future growth.

Wideopenwest Business Overview & Revenue Model

Company Description

Wideopenwest (WOW) is a telecommunications company that provides high-speed internet, cable television, and digital phone services primarily in the United States. Founded in 1996, WOW operates in several markets, focusing on delivering reliable and affordable connectivity solutions to residential and business customers. The company emphasizes customer service and aims to enhance digital experiences through its innovative products and services.

How the Company Makes Money

WOW generates revenue primarily through its subscription-based services, including broadband internet, cable television, and VoIP phone services. The company charges customers monthly fees for these services, with various pricing tiers based on speed and channel packages. Additionally, WOW earns revenue from advertising sales through its cable television offerings and may benefit from partnerships with content providers and local businesses. The company's focus on customer retention and competitive pricing strategies also contribute to its earnings by reducing churn and attracting new subscribers.

Wideopenwest Financial Statement Overview

Summary

Wideopenwest displays operational efficiency through solid EBITDA margins but struggles with revenue decline and net losses. High leverage and decreasing equity raise concerns about financial stability. While cash generation remains strong, negative free cash flow limits growth opportunities, posing challenges in improving overall financial health.

Income Statement

The income statement shows declining revenue with a decrease from $704.9M in 2022 to $619.4M in TTM 2025. Gross profit margin for TTM is 40.8%, but the company has faced consistent net losses, with a net profit margin of -9.3% in TTM. EBITDA margin remains healthy at 39.1%, indicating operational efficiency, but overall profitability is a concern due to negative net income.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 5.38 in TTM, signaling significant leverage. Stockholders' equity has decreased over the years, and the equity ratio is 13.0%, reflecting limited equity compared to assets. The return on equity is negative due to net losses, presenting potential financial instability risks.

Cash Flow

Operating cash flow to net income ratio is robust at -2.55 in TTM, suggesting strong cash generation despite net losses. Free cash flow has improved slightly, though still negative at -$35M in TTM. The company faces challenges in sustaining positive free cash flow, impacting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	604.80M	630.90M	686.70M	704.90M	725.70M	1.15B
Gross Profit	315.20M	374.10M	385.70M	377.90M	349.30M	578.20M
EBITDA	213.90M	216.50M	-103.30M	209.60M	174.10M	221.70M
Net Income	-64.70M	-58.80M	-287.70M	-2.50M	-68.60M	14.40M
Balance Sheet
Total Assets	1.50B	1.51B	1.51B	1.72B	1.91B	2.49B
Cash, Cash Equivalents and Short-Term Investments	31.80M	38.80M	23.40M	31.00M	193.20M	12.40M
Total Debt	1.07B	1.04B	956.80M	759.20M	760.30M	2.29B
Total Liabilities	1.32B	1.30B	1.26B	1.14B	1.34B	2.70B
Stockholders Equity	180.90M	208.80M	258.20M	575.10M	570.80M	-212.40M
Cash Flow
Free Cash Flow	-49.10M	-52.10M	-133.80M	-133.40M	-33.70M	43.30M
Operating Cash Flow	129.90M	163.70M	135.10M	33.80M	174.00M	277.40M
Investing Cash Flow	-177.60M	-215.60M	-268.80M	-165.80M	1.56B	-234.30M
Financing Cash Flow	58.80M	67.30M	126.10M	-30.20M	-1.55B	-51.70M

Wideopenwest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOW, the sentiment is Positive. The current price of 5.13 is below the 20-day moving average (MA) of 5.15, above the 50-day MA of 5.01, and above the 200-day MA of 4.50, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WOW.

Wideopenwest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LUMN	55 Neutral	$7.46B	―	-78.94%	―	-6.50%	43.47%
CABO	52 Neutral	$896.87M	59.21	-30.85%	7.41%	-5.43%	-363.95%
SHEN	51 Neutral	$725.19M	―	-3.93%	0.76%	16.73%	-237.78%
CCOI	50 Neutral	$2.21B	102.75	-93.59%	8.97%	-6.64%	-569.94%
WOW	47 Neutral	$439.69M	―	-30.99%	―	-8.67%	63.35%
ATUS	41 Neutral	$1.20B	―	21.93%	―	-3.82%	-363.28%

Wideopenwest Corporate Events

Wideopenwest Enters Merger Agreement with DigitalBridge

WideOpenWest, Inc. (WOW!), a Delaware corporation, has entered into a merger agreement with Bandit Parent, LP and Bandit Merger Sub, Inc., affiliates of DigitalBridge Partners III, LP and Crestview Partners, on August 11, 2025. The merger will result in WOW! becoming a wholly owned subsidiary of Parent, with its common stock being delisted from the New York Stock Exchange. The merger agreement includes a cash consideration of $5.20 per share for WOW! stockholders, subject to approval by the majority of outstanding shares. The merger is contingent on regulatory approvals and other conditions, and if completed, it will impact WOW!’s market presence and shareholder value. Additionally, an amendment to WOW!’s credit agreement extends the maturity date of its revolving credit facility, conditional on the merger’s closing.

Wideopenwest Announces Acquisition by DigitalBridge and Crestview

On August 11, 2025, WideOpenWest, Inc. announced a definitive agreement for its acquisition by DigitalBridge Investments, LLC and Crestview Partners for $1.5 billion. The transaction, offering $5.20 per share in cash, represents a significant premium over WOW!’s previous stock prices. This move is expected to enhance WOW!’s position in the broadband industry by providing resources for network expansion and technology upgrades. The transaction, approved by WOW!’s Board of Directors, is anticipated to close by early 2026, subject to regulatory approvals and stockholder consent.