| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 0/6 |
| Dividends | 0/6 |
ATUS Overview
Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands.
Altice USA Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$25.65 |
| 52 Week High | US$25.08 |
| 52 Week Low | US$38.30 |
| Beta | 1.09 |
| 1 Month Change | -10.47% |
| 3 Month Change | -24.36% |
| 1 Year Change | -2.29% |
| 3 Year Change | 33.87% |
| 5 Year Change | n/a |
| Change since IPO | -21.58% |
Recent News & Updates
Plugging Into The Altice Bull Case
Altice has massively trailed peers so far this year. Management has not done themselves any favors. From a quixotic quest to buy Atlantic Broadband to forecasts that showed no handle on the business. Still, the company is much cheaper than peers, gushing cash flow, and buying back shares hand over fist.
Altice USA: 16% Correction Was Overreaction To Q2 Broadband Stability
ATUS stock has fallen 15.5% since Q2 results on July 28, which we believe to be an over-reaction and represents an opportunity. Zero organic Broadband net add in Q2 was due to COVID-related move churn and the end of mandated payment extensions. Competition has remained manageable, ATUS is confident about H2, and "edge out" and fiber upgrade will help future years. Free Cash Flow Yield is nearly 10%, and Free Cash Flow/Share will grow at double digits even with conservative assumptions. With shares at $28.81, we expect an exit price of $58 and a total return of 101% (22.8% annualized) by 2024 year-end. Buy.
Here's What's Concerning About Altice USA's (NYSE:ATUS) Returns On Capital
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Shareholder Returns
| ATUS | US Media | US Market | |
|---|---|---|---|
| 7D | -3.9% | -1.8% | -0.6% |
| 1Y | -2.3% | 29.9% | 33.8% |
Return vs Industry: ATUS underperformed the US Media industry which returned 29.9% over the past year.
Return vs Market: ATUS underperformed the US Market which returned 33.8% over the past year.
Price Volatility
| ATUS volatility | |
|---|---|
| ATUS Beta | 1.09 |
| Industry Beta | 1.15 |
| Market Beta | 1 |
Stable Share Price: ATUS is not significantly more volatile than the rest 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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2015 | 8,900 | Dexter Goei | https://www.alticeusa.com |
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, telephony, and mobile services to approximately 5 million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications.
Altice USA Fundamentals Summary
| ATUS fundamental statistics | |
|---|---|
| Market Cap | US$11.73b |
| Earnings (TTM) | US$797.57m |
| Revenue (TTM) | US$9.96b |
14.7x
P/E Ratio1.2x
P/S RatioIs ATUS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ATUS income statement (TTM) | |
|---|---|
| Revenue | US$9.96b |
| Cost of Revenue | US$3.32b |
| Gross Profit | US$6.65b |
| Expenses | US$5.85b |
| Earnings | US$797.57m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.56 |
| Gross Margin | 66.71% |
| Net Profit Margin | 8.00% |
| Debt/Equity Ratio | -1,999.9% |
How did ATUS perform over the long term?
See historical performance and comparisonValuation
Is Altice USA undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ATUS ($25.65) is trading below our estimate of fair value ($54.1)
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 (14.7x) compared to the US Media industry average (12.3x).
PE vs Market: ATUS is good value based on its PE Ratio (14.7x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: ATUS is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: ATUS has negative assets, so we can't compare its PB Ratio to the US Media industry average.
Future Growth
How is Altice USA forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
11.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ATUS's forecast earnings growth (11.6% per year) is above the savings rate (2%).
Earnings vs Market: ATUS's earnings (11.6% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: ATUS's earnings are forecast to grow, but not significantly.
Revenue vs Market: ATUS's revenue (2.2% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: ATUS's revenue (2.2% 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 (78.2%).
Past Performance
How has Altice USA performed over the past 5 years?
28.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ATUS has high quality earnings.
Growing Profit Margin: ATUS's current net profit margins (8%) are higher than last year (1.9%).
Past Earnings Growth Analysis
Earnings Trend: ATUS has become profitable over the past 5 years, growing earnings by 28.6% per year.
Accelerating Growth: ATUS's earnings growth over the past year (324.3%) exceeds its 5-year average (28.6% per year).
Earnings vs Industry: ATUS earnings growth over the past year (324.3%) exceeded the Media industry 96.3%.
Return on Equity
High ROE: ATUS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Financial Health
How is Altice USA's financial position?
Financial Position Analysis
Short Term Liabilities: ATUS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: ATUS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: ATUS has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: ATUS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: ATUS's debt is not well covered by operating cash flow (10.9%).
Interest Coverage: ATUS's interest payments on its debt are not well covered by EBIT (2x coverage).
Balance Sheet
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?
2.4yrs
Average management tenure
CEO
Dexter Goei (49 yo)
5.25yrs
Tenure
US$48,021,088
Compensation
Mr. Dexter G. Goei is Non-Independent Non-Executive Director at Teads B.V. since 2021. He is the Chief Executive Officer and Director of Altice USA since 2016. Mr. Goei was the Chairman of ltice USA since...
CEO Compensation Analysis
Compensation vs Market: Dexter's total compensation ($USD48.02M) is above average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Dexter's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: ATUS's management team is considered experienced (2.4 years average tenure).
Board Members
Experienced Board: ATUS's board of directors are considered experienced (3.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$11.725b
- Shares outstanding: 457.13m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/19 22:12 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.