NYSE:CABO

Stock Analysis Report

Executive Summary

Cable One, Inc. owns and operates cable systems that provide data, video, and voice services.

Rewards

Trading at 3.1% below its fair value

Earnings are forecast to grow 21.56% per year

Risk Analysis

Has a high level of debt

Profit margins (14.9%) are lower than last year (25.2%)



Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Cable One's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CABO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.3%

CABO

2.5%

US Media

1.8%

US Market


1 Year Return

90.2%

CABO

20.0%

US Media

20.1%

US Market

Return vs Industry: CABO exceeded the US Media industry which returned 20% over the past year.

Return vs Market: CABO exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

CABOIndustryMarket
7 Day4.3%2.5%1.8%
30 Day8.8%-0.4%1.4%
90 Day16.9%5.6%8.8%
1 Year91.4%90.2%21.6%20.0%22.7%20.1%
3 Year186.3%179.1%17.9%13.0%50.1%40.4%
5 Yearn/a36.8%26.0%72.9%53.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cable One undervalued compared to its fair value and its price relative to the market?

3.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CABO ($1774) is trading below our estimate of fair value ($1829.97)

Significantly Below Fair Value: CABO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CABO is poor value based on its PE Ratio (60.3x) compared to the Media industry average (14.1x).

PE vs Market: CABO is poor value based on its PE Ratio (60.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: CABO is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: CABO is overvalued based on its PB Ratio (13.1x) compared to the US Media industry average (1.4x).


Next Steps

Future Growth

How is Cable One forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CABO's forecast earnings growth (21.6% per year) is above the savings rate (1.7%).

Earnings vs Market: CABO's earnings (21.6% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: CABO's revenue (7.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: CABO's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CABO's Return on Equity is forecast to be high in 3 years time (27.2%)


Next Steps

Past Performance

How has Cable One performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CABO has high quality earnings.

Growing Profit Margin: CABO's current net profit margins (14.9%) are lower than last year (25.2%).


Past Earnings Growth Analysis

Earnings Trend: CABO's earnings have grown by 14.1% per year over the past 5 years.

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

Earnings vs Industry: CABO had negative earnings growth (-37.5%) over the past year, making it difficult to compare to the Media industry average (1%).


Return on Equity

High ROE: Whilst CABO's Return on Equity (21.55%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cable One's financial position?


Financial Position Analysis

Short Term Liabilities: CABO's short term assets ($196.1M) exceed its short term liabilities ($153.2M).

Long Term Liabilities: CABO's short term assets ($196.1M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: CABO's debt to equity ratio (182.3%) is considered high.

Reducing Debt: CABO's debt to equity ratio has increased from 0.8% to 182.3% over the past 5 years.

Debt Coverage: CABO's debt is well covered by operating cash flow (30.8%).

Interest Coverage: CABO's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: CABO has a high level of physical assets or inventory.

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


Next Steps

Dividend

What is Cable One's current dividend yield, its reliability and sustainability?

0.51%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: CABO's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CABO's dividend (0.51%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: CABO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CABO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CABO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CABO'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?

2.9yrs

Average management tenure


CEO

Julie Laulis (56yo)

3.1yrs

Tenure

US$2,700,030

Compensation

Ms. Julia M. Laulis has been Chief Executive Officer and Director of Cable One, Inc. since January 01, 2017 and has been its President since January 2015. Ms. Laulis has been the Chairman of Cable One, Inc ...


CEO Compensation Analysis

Compensation vs Market: Julie's total compensation ($USD2.70M) is below average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Julia Laulis
Chairwoman3.1yrsUS$2.70m0.12% $11.9m
Steven Cochran
Senior VP & CFO1.5yrsUS$2.01m0.033% $3.4m
Michael Bowker
Chief Operating Officer2.8yrsUS$1.29m0.033% $3.3m
Peter Witty
Senior VP1.8yrsUS$1.88m0.030% $3.0m
Eric Lardy
Senior Vice President3.1yrsUS$981.06k0.023% $2.3m
Kenneth Johnson
Senior Vice President of Technology Services1.8yrsno data0.017% $1.7m
Trish Niemann
Corporate Communications Director0yrsno datano data
Tina Evangelista
Vice President of Human Resources0yrsno datano data
Stephen Fox
Senior Vice President of Network Architecture12.1yrsUS$726.37kno data
Charles McDonald
Senior Vice President of Operations4.1yrsUS$1.14m0.023% $2.3m

2.9yrs

Average Tenure

50.5yo

Average Age

Experienced Management: CABO's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Julia Laulis
Chairwoman3.1yrsUS$2.70m0.12% $11.9m
Alan Spoon
Independent Director4.6yrsUS$209.88k0.021% $2.2m
Thomas Gayner
Lead Independent Director4.6yrsUS$263.68k0.12% $11.9m
Thomas Might
Director25.1yrsUS$172.15k0.18% $18.3m
Katharine Weymouth
Independent Director4.6yrsUS$197.01k0.0040% $404.3k
Brad Brian
Independent Director4.6yrsUS$209.88k0.021% $2.2m
Wallace Weitz
Independent Director4.6yrsUS$236.80k0.024% $2.5m
Deborah Kissire
Independent Director4.6yrsUS$211.53k0.0053% $533.9k
Mary Meduski
Director0.6yrsno datano data
Kristine Miller
Director0.4yrsno datano data

4.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: CABO's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CABO 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

Cable One, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cable One, Inc.
  • Ticker: CABO
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: US$10.132b
  • Shares outstanding: 5.71m
  • Website: https://www.cableone.net

Number of Employees


Location

  • Cable One, Inc.
  • 210 East Earll Drive
  • Phoenix
  • Arizona
  • 85012
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CABONYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2015
XC1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2015

Biography

Cable One, Inc. owns and operates cable systems that provide data, video, and voice services. The company offers residential data services, including WiFi ONE, a Wi-Fi solution 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, which comprise weather, shopping, and religious channels, as well as digital video services, including national and regional cable networks, music channels, and an interactive electronic programming guide with parental controls. In addition, the company offers premium channels; 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 and international calling by the minute services. Additionally, the company offers data, voice, and video products to business customers that include small to mid-markets, enterprises, and wholesale and carrier customers; and digital advertising products, including Website construction, targeted display, and short- and long-form video production. As of February 27, 2019, it served approximately 800,000 residential and business customers in 21 Western, Midwestern, and Southern United States. Cable One, Inc. was incorporated in 1980 and is headquartered in Phoenix, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 01:11
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.