Cable One, Inc. (CABO) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Cable One, Inc. (CABO) Media & Communications Profile

Cable One, Inc. (CABO) delivers data, video, and voice services across the U.S., operating through its Sparklight, Fidelity, and Clearwave brands. The company serves approximately 1.2 million residential and business customers, focusing on connectivity and entertainment solutions in a competitive telecommunications landscape.

What Is the Investment Thesis for CABO?

Cable One, Inc. presents a mixed investment thesis. While the company operates in a sector with ongoing demand for data and connectivity, its negative profit margin of -21.9% raises concerns about profitability. The company's gross margin of 51.0% indicates potential for efficiency improvements. Growth catalysts include expanding data service offerings and penetrating new business customer segments. Investors should monitor customer growth, ARPU (Average Revenue Per User), and cost management initiatives to assess the company's ability to achieve sustainable profitability. The company's beta of 0.69 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

CABO Key Highlights

Served approximately 1.2 million residential and business customers as of December 31, 2021.

• Operates under the Sparklight, Fidelity, and Clearwave brands across 24 states.
• Gross Margin of 51.0% indicates potential for profitability improvements.
• Negative Profit Margin of -21.9% signals a need for enhanced cost management and revenue growth strategies.
• Beta of 0.69 suggests lower volatility compared to the broader market.

Who Are CABO's Competitors?

CABO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are CABO's Key Strengths?

Established brand recognition through Sparklight, Fidelity, and Clearwave.

• Comprehensive suite of data, video, and voice services.
• Presence in 24 states with a diverse customer base.
• Infrastructure investments in cable and fiber optic networks.

What Are CABO's Weaknesses?

Negative profit margin indicating profitability challenges.

• Smaller scale compared to larger competitors like Comcast and Charter.
• Dependence on traditional cable infrastructure in some areas.
• Exposure to competition from emerging wireless technologies.

What Could Drive CABO Stock Higher?

Expansion of fiber optic infrastructure to enhance data service capabilities.

• Integration of streaming platforms into video service offerings to attract and retain subscribers.
• Strategic partnerships and acquisitions to expand geographic reach and service offerings.

What Are the Key Risks for CABO?

Financial-distress signal — its Altman Z-Score of -0.18 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-22.8%) — the business is not currently generating profit on shareholder capital.
• Inconsistent delivery — missed Wall Street EPS estimates in 7 of the last 8 reported quarters.
• Increased competition from larger cable providers and telecommunications companies.
• Technological advancements and the rise of alternative connectivity solutions.
• Regulatory changes and potential government intervention.
• Economic downturns affecting consumer spending on telecommunications services.

What Are the Growth Opportunities for CABO?

• Growth opportunity 1: Expanding Data Service Offerings: Cable One can capitalize on the increasing demand for high-speed internet by enhancing its residential data services. This includes offering higher bandwidth options and improving Wi-Fi solutions to cater to the growing number of connected devices in households. The residential broadband market is projected to reach $120 billion by 2028, presenting a substantial opportunity for Cable One to increase its market share through competitive pricing and superior service quality.
• Growth opportunity 2: Penetrating New Business Customer Segments: Cable One can further expand its business by targeting small to mid-sized businesses with tailored data, voice, and video solutions. The SMB telecommunications market is estimated at $40 billion annually, offering significant potential for revenue growth. By offering competitive pricing and customized service packages, Cable One can attract new business customers and increase its market presence.
• Growth opportunity 3: Enhancing Video Service Offerings: Cable One can enhance its video services by integrating streaming platforms and offering advanced features like personalized recommendations and interactive content. The video streaming market is projected to reach $97.23 billion in 2026, indicating a strong demand for innovative video solutions. By partnering with streaming providers and developing user-friendly interfaces, Cable One can attract and retain video subscribers.
• Growth opportunity 4: Leveraging Fiber Optic Infrastructure: Cable One can invest in expanding its fiber optic infrastructure to deliver faster and more reliable data services. The fiber optic market is expected to grow at a CAGR of 12% over the next five years, driven by the increasing demand for high-speed internet and cloud-based services. By upgrading its network infrastructure, Cable One can improve its service quality and attract customers seeking superior connectivity.
• Growth opportunity 5: Strategic Acquisitions and Partnerships: Cable One can pursue strategic acquisitions and partnerships to expand its geographic reach and service offerings. The telecommunications industry is characterized by consolidation, and strategic alliances can provide access to new markets and technologies. By identifying complementary businesses and forming partnerships, Cable One can enhance its competitive position and drive long-term growth.

What Are CABO's Competitive Advantages?

• Established presence in select markets with a loyal customer base.
• Infrastructure investments in cable and fiber optic networks.
• Brand recognition through Sparklight, Fidelity, and Clearwave brands.
• Ability to bundle data, video, and voice services for competitive pricing.

What Does CABO Do?

Cable One, Inc., established in 1980 and headquartered in Phoenix, Arizona, provides data, video, and voice services to residential and business customers in the United States. The company's residential offerings include high-speed data services with enhanced Wi-Fi solutions, comprehensive video services featuring local and national networks, premium channels, and advanced functionalities like whole-home DVRs and TV Everywhere streaming. Additionally, Cable One delivers residential voice services, encompassing local and long-distance calling with features such as voicemail and caller ID. For business clients, Cable One offers tailored data, voice, and video products catering to small to mid-sized markets, enterprises, and wholesale customers. Operating under the Sparklight, Fidelity, and Clearwave brands, Cable One served approximately 1.2 million customers across 24 states as of December 31, 2021. The company focuses on providing reliable connectivity and entertainment solutions to both residential and business sectors, adapting to evolving technological demands and customer preferences in the telecommunications industry.

What Products and Services Does CABO Offer?

• Provides residential data services, including enhanced Wi-Fi solutions.
• Offers residential video services with local and national networks, premium channels, and digital video options.
• Delivers residential voice services with local and long-distance calling features.
• Provides data, voice, and video products to business customers, including small to mid-markets and enterprises.
• Operates under the Sparklight, Fidelity, and Clearwave brands.
• Serves approximately 1.2 million residential and business customers in 24 states.

How Does CABO Make Money?

• Generates revenue through subscription fees for data, video, and voice services.
• Offers tiered pricing plans for residential and business customers based on bandwidth and service features.
• Provides premium channel subscriptions and advanced video services for additional revenue.
• Targets small to mid-sized markets, enterprises, and wholesale customers with tailored solutions.

What Industry Does CABO Operate In?

Cable One operates within the competitive telecommunications services industry, facing challenges from traditional cable providers, fiber optic networks, and emerging wireless technologies. The industry is characterized by increasing demand for high-speed data and streaming services, driving the need for infrastructure investments and technological advancements. Cable One's focus on providing data, video, and voice services positions it to capitalize on these trends, but it must effectively compete with larger players and adapt to evolving customer preferences.

Who Are CABO's Key Customers?

• Residential customers seeking data, video, and voice services.
• Small to mid-sized businesses requiring telecommunications solutions.
• Enterprises needing reliable connectivity and communication services.
• Wholesale and carrier customers.

Cable One, Inc. (CABO) Valuation Context

Analyst price targets span from $40.00 to $86.00, with a consensus of $63.00. At the current price of $21.35, that implies approximately 195% upside potential. Relative to its peer group, CABO's quantitative score of 32/100 is below the peer average of 61/100.

CABO Revenue & Earnings Trend

In Q2 FY2026, CABO generated $348.9M in top-line revenue, marking a sequential decrease of 1.1%. The company recorded a net loss of $1.16B, with diluted EPS of $-204.35. Revenue has contracted over three consecutive quarters, which investors in this unknown Communication Services stock should monitor closely. Across the four most recent quarters, CABO averaged $-46.39 in diluted EPS.

Company Profile

Cable One, Inc. operates in the Telecommunications Services industry within the Communication Services sector. It is headquartered in Phoenix, US. The company is led by CEO James Holanda. CABO has traded publicly since 2015.

Return on equity for Cable One, Inc. stands at -22.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -5.8%, showing how much profit it generates from its asset base. Its free cash flow yield is -55.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.75 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -107.1%, the inverse of the P/E and a quick read on earnings relative to price.

Cable One, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.18 places it in the distress zone, a signal of elevated financial risk.

Cable One, Inc. has missed Wall Street's EPS estimate in 7 of its last 8 reported quarters — a recurring pattern of falling short of estimates. Reported results have landed about 814.0% below estimates on average.

Over the past six months, Cable One, Inc. insiders filed 11 SEC Form 4 transactions — 1 sales and 10 purchases. On net that is roughly 95K shares acquired (about $1.4M) — insiders putting money in tends to read as conviction.

CABO Financials

CABO Latest News

CABO Analyst Consensus

CABO MoonshotScore

Cable One, Inc. Communication Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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