NYSE:ATUS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Altice USA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATUS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ATUS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

7.9%

ATUS

3.3%

US Media

2.1%

US Market


1 Year Return

33.2%

ATUS

13.7%

US Media

19.8%

US Market

Return vs Industry: ATUS exceeded the US Media industry which returned 13.7% over the past year.

Return vs Market: ATUS exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

ATUSIndustryMarket
7 Day7.9%3.3%2.1%
30 Day27.8%18.4%8.1%
90 Day25.6%12.4%6.0%
1 Year33.2%33.2%15.4%13.7%22.5%19.8%
3 Year114.2%92.5%38.6%32.7%46.5%36.8%
5 Yearn/a69.4%57.1%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Altice USA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Altice USA undervalued compared to its fair value and its price relative to the market?

32.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATUS ($34.37) is trading below our estimate of fair value ($50.65)

Significantly Below Fair Value: ATUS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ATUS is poor value based on its PE Ratio (195.7x) compared to the US Media industry average (22.9x).

PE vs Market: ATUS is poor value based on its PE Ratio (195.7x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: ATUS is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: ATUS is overvalued based on its PB Ratio (26.4x) compared to the US Media industry average (1.7x).


Next Steps

Future Growth

How is Altice USA forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

38.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATUS's forecast earnings growth (38.2% per year) is above the savings rate (2.2%).

Earnings vs Market: ATUS's earnings (38.2% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ATUS's revenue (2.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ATUS's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATUS's Return on Equity is forecast to be very high in 3 years time (43.7%).


Next Steps

Past Performance

How has Altice USA performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATUS has a large one-off loss of $688.4M impacting its September 30 2020 financial results.

Growing Profit Margin: ATUS's current net profit margins (1.1%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: ATUS's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: ATUS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ATUS had negative earnings growth (-69.6%) over the past year, making it difficult to compare to the Media industry average (-12.2%).


Return on Equity

High ROE: ATUS's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is Altice USA's financial position?


Financial Position Analysis

Short Term Liabilities: ATUS's short term assets ($1.6B) do not cover its short term liabilities ($2.0B).

Long Term Liabilities: ATUS's short term assets ($1.6B) do not cover its long term liabilities ($31.2B).


Debt to Equity History and Analysis

Debt Level: ATUS's debt to equity ratio (3468.4%) is considered high.

Reducing Debt: ATUS had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: ATUS's debt is not well covered by operating cash flow (11.3%).

Interest Coverage: ATUS's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Altice USA current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ATUS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ATUS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATUS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATUS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATUS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Dexter Goei (48 yo)

4.42yrs

Tenure

US$2,261,200

Compensation

Mr. Dexter G. Goei is the Chief Executive Officer and Director of Altice USA since 2016. Mr. Goei was the Chairman of ltice USA since 2016 June until June 8, 2018. Mr. Dexter G. Goei has been the Chairman ...


CEO Compensation Analysis

Compensation vs Market: Dexter's total compensation ($USD2.26M) is below average for companies of similar size in the US market ($USD10.79M).

Compensation vs Earnings: Dexter's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dexter Goei
CEO & Director4.42yrsUS$2.26m2.12%
$ 394.0m
Michael Grau
Executive VP & CFO1.08yrsUS$1.13m0.037%
$ 6.9m
Abdelhakim Boubazine
President of Telecommunications & COO4.83yrsUS$1.01m0.25%
$ 46.1m
Michael Olsen
Executive VP1.58yrsUS$1.22m0.014%
$ 2.7m
Colleen Schmidt
Executive Vice President of Human Resourcesno dataUS$1.16m0.040%
$ 7.5m
Charles Stewart
Special Advisor & Director2.42yrsUS$945.82k0.24%
$ 45.1m
Layth Taki
Chief Accounting Officer1.83yrsno data0.022%
$ 4.1m
Philippe Le May
Chief Technology Officer3.25yrsno datano data
Keith Sherwell
Chief Information Officer & Senior VPno datano datano data
Lisa Anselmo
Senior Vice President of Communicationsno datano datano data
Pragash Pillai
Executive Vice President of Customer Experience and Regional Market Strategyno datano datano data
Lee Schroeder
Executive VP of Government & Community Affairs and Chief Diversity Officer2.75yrsno datano data

2.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: ATUS's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dexter Goei
CEO & Director4.42yrsUS$2.26m2.12%
$ 394.0m
Charles Stewart
Special Advisor & Director2.42yrsUS$945.82k0.24%
$ 45.1m
Raymond Svider
Independent Director3.42yrsUS$117.50kno data
Mark Mullen
Independent Director3.42yrsUS$110.00k0.0015%
$ 282.5k
Patrick Drahi
Chairman2.83yrsno datano data
Manon Brouillette
Independent Director3.08yrsUS$100.00kno data
Dennis Okhuijsen
Director3.42yrsno datano data
Gerrit Bakker
Director2.42yrsno data0.0054%
$ 996.3k
David Drahi
Director1.75yrsno datano data

3.1yrs

Average Tenure

50yo

Average Age

Experienced Board: ATUS's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ATUS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Altice USA, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altice USA, Inc.
  • Ticker: ATUS
  • Exchange: NYSE
  • Founded: 2015
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: US$18.587b
  • Shares outstanding: 540.80m
  • Website: https://www.alticeusa.com

Number of Employees


Location

  • Altice USA, Inc.
  • 1 Court Square West
  • Long Island City
  • New York
  • 11101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATUSNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 2017
15PADB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2017
ATUS *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJun 2017

Biography

Altice 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, and tel...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:58
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.