NYSE:ATUS

Stock Analysis Report

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.


Snowflake Analysis

Proven track record with reasonable growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.3%

ATUS

-4.2%

US Media

-1.1%

US Market


1 Year Return

-3.1%

ATUS

-17.5%

US Media

-13.6%

US Market

Return vs Industry: ATUS exceeded the US Media industry which returned -17.5% over the past year.

Return vs Market: ATUS exceeded the US Market which returned -13.6% over the past year.


Shareholder returns

ATUSIndustryMarket
7 Day-7.3%-4.2%-1.1%
30 Day-15.0%-21.5%-17.8%
90 Day-21.2%-27.5%-22.5%
1 Year-3.1%-3.1%-16.3%-17.5%-11.9%-13.6%
3 Yearn/a-16.7%-20.3%12.1%4.9%
5 Yearn/a-3.8%-11.4%30.5%16.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATUS ($21.95) is trading below our estimate of fair value ($47)

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 (104.3x) compared to the Media industry average (9.5x).

PE vs Market: ATUS is poor value based on its PE Ratio (104.3x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: ATUS is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: ATUS is overvalued based on its PB Ratio (6.1x) compared to the US Media industry average (0.9x).


Next Steps

Future Growth

How is Altice USA forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

31.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATUS's forecast earnings growth (31.9% per year) is above the savings rate (1.7%).

Earnings vs Market: ATUS's earnings (31.9% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: ATUS's revenue (3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ATUS's revenue (3% 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 (72.6%).


Next Steps

Past Performance

How has Altice USA performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATUS has a large one-off loss of $126.1M impacting its December 31 2019 financial results.

Growing Profit Margin: ATUS's current net profit margins (1.4%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: ATUS's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: ATUS's earnings growth over the past year (637.7%) exceeds its 5-year average (22% per year).

Earnings vs Industry: ATUS earnings growth over the past year (637.7%) exceeded the Media industry 6%.


Return on Equity

High ROE: ATUS's Return on Equity (6.1%) 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 ($1.4B) do not cover its short term liabilities ($2.0B).

Long Term Liabilities: ATUS's short term assets ($1.4B) do not cover its long term liabilities ($29.9B).


Debt to Equity History and Analysis

Debt Level: ATUS's debt to equity ratio (1075.4%) 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 (10.4%).

Interest Coverage: ATUS's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet

Inventory Level: ATUS has a low level of unsold assets or inventory.

Debt Coverage by Assets: ATUS's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Altice USA's 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 payouts.

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

1.3yrs

Average management tenure


CEO

Dexter Goei (47yo)

3.83s

Tenure

US$12,150,232

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 ($USD12.15M) is about average for companies of similar size in the US market ($USD11.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dexter Goei
CEO & Director3.83yrsUS$12.15m1.88% $261.9m
Abdelhakim Boubazine
President of Telecommunications & COO4.25yrsUS$3.83m0.38% $52.8m
Charles Stewart
Special Advisor & Director1.83yrsUS$3.83m0.22% $30.0m
Michael Grau
Chief Financial Officer0.50yrno data0.021% $3.0m
Layth Taki
Chief Accounting Officer1.25yrsno data0.014% $1.9m
Philippe Le May
Chief Technology Officer2.67yrsno datano data
Keith Sherwell
Chief Information Officer & Senior VPno datano datano data
Michael Olsen
Executive VP1yrno data0.012% $1.7m
Lisa Anselmo
Senior Vice President of Communicationsno datano datano data
Colleen Schmidt
Executive Vice President of Human Resourcesno datano data0.071% $9.9m

1.3yrs

Average Tenure

49yo

Average Age

Experienced Management: ATUS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Dexter Goei
CEO & Director3.83yrsUS$12.15m1.88% $261.9m
Charles Stewart
Special Advisor & Director1.83yrsUS$3.83m0.22% $30.0m
Raymond Svider
Independent Director2.83yrsUS$117.50kno data
Mark Mullen
Independent Director2.83yrsUS$110.00k0.0014% $187.6k
Patrick Drahi
Chairman2.25yrsno datano data
Manon Brouillette
Independent Director2.5yrsUS$100.00kno data
Dennis Okhuijsen
Director2.83yrsno datano data
Gerrit Bakker
Director1.83yrsno data0.0048% $662.8k
David Drahi
Director1.17yrsno datano data

2.5yrs

Average Tenure

49yo

Average Age

Experienced Board: ATUS's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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 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$13.894b
  • Shares outstanding: 633.00m
  • 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
15PABRSE (Berne Stock Exchange)YesClass A Common StockCHCHFJun 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 telephony services to approximately 4.9 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. It also provides voice over Internet protocol (VoIP) telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and managed collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services, consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services, which include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, Web space storage, and network security monitoring; and international calling consisting and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides network construction and maintenance services and commercial and residential installations, disconnections, and maintenance services. The company provides communications and video services under Optimum and Suddenlink brand names. Altice USA, Inc. was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. operates as a subsidiary of Next Alt S.a.r.l. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 01:41
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
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.