Cable One, Inc.
$48.06
-6.4%Cable One, Inc., together with its subsidiaries, provides data, video, and voice services in the United States. The company offers residential data services, a service to enhance Wi-Fi signal throughout the home. It also provides residential video services, such as local networks; local community programming that includes governmental and public access; and other channels, as well as digital video services, including national and regional cable networks, music channels, and an interactive and electronic programming guide with parental controls. In addition, the company offers premium channels that offer movies, original programming, live sporting events, and concerts and other features; and advanced video services, such as whole-home DVRs and high-definition set-top boxes, as well as TV Everywhere product, which enables its video customers to stream various channels and shows to mobile devices and computers. Further, it provides residential voice services comprising local and long-distance calling, voicemail, call waiting, three-way calling, caller ID, anonymous call rejection, and other features, as well as international calling by the minute services. Additionally, the company offers data, voice, and video products to business customers, including small to mid-markets, enterprises, and wholesale and carrier customers. As of December 31, 2021, it served approximately 1.2 million residential and business customers in 24 states through its Sparklight, Fidelity, and Clearwave brands. Cable One, Inc. was incorporated in 1980 and is headquartered in Phoenix, Arizona.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -0.8).
Valuation inputs: P/E -0.8, earnings yield N/A, momentum -6.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -24.9%, ROIC +5.9%).
Profitability stack: net margin -23.7%, ROE -24.9%, ROIC +5.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +74.3%, momentum -6.4%, net margin -23.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Cable One, Inc. Market vs Earnings Trajectory
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Cable One, Inc. Fair Value Envelope
Cable One, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Interest or tax burden: Strong operational performance but thin net margins indicate high interest expenses or unfavorable tax position eating into profits.
Cable One, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
Cable One, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Cable One, Inc. Street Expectations Map
Wall Street analysts project that CABO stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 80.00, with estimates ranging from a low of 80.00 to a high of 80.00.
The consensus 1-year price target stands at 80.00, with estimates ranging from a low of 80.00 to a high of 80.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Cable One, Inc. Insider Positioning
During the last 12 months, insiders have purchased $362K and sold $16K worth of CABO shares, resulting in $346K of net buying activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
998
99.96K
0
0.00
+100K
+$100K
6-9 Months
0
0.00
19
3.37K
-3K
-$3K
9-12 Months
2.0K
262.11K
93
12.72K
+249K
+$249K
Top Buyers
Weitz Wallace R
Director
$242K
Koetje Todd M
Officer: Chief Financial Officer
$100K
Weymouth Katharine
Director
$20K
Top Sellers
Arntzen Christopher J
Officer: Svp, Gc & Secretary
$16K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $346K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Insider Participation
3 insider buyers vs. 1 sellers. Broad-based buying across management team suggests widespread confidence.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
cabo Dividend History
Learning Layer
Related Guides
Build conviction on CABO by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.