CABLE ONE INC (CABO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CABO - US12685J1051 - Common Stock
75.65 USD
+2.81 (+3.86%)
75.65 USD
0 (0%)
Taking everything into account, CABO scores 4 out of 10 in our fundamental rating. CABO was compared to 92 industry peers in the Media industry. There are concerns on the financial health of CABO while its profitability can be described as average. CABO has a valuation in line with the averages, but it does not seem to be growing. CABO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- CABO had negative earnings in the past year.
- In the past year CABO had a positive cash flow from operations.
- In the past 5 years CABO has always been profitable.
- Each year in the past 5 years CABO had a positive operating cash flow.
1.2 Ratios
- CABO has a Return On Assets (-7.97%) which is in line with its industry peers.
- With a Return On Equity value of -31.71%, CABO perfoms like the industry average, outperforming 44.57% of the companies in the same industry.
- CABO's Return On Invested Capital of 7.41% is amongst the best of the industry. CABO outperforms 85.87% of its industry peers.
- CABO had an Average Return On Invested Capital over the past 3 years of 6.75%. This is in line with the industry average of 7.07%.
- The last Return On Invested Capital (7.41%) for CABO is above the 3 year average (6.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.97% | ||
| ROE | -31.71% | ||
| ROIC | 7.41% |
ROA(3y)2.31%
ROA(5y)3.58%
ROE(3y)8.85%
ROE(5y)12.63%
ROIC(3y)6.75%
ROIC(5y)6.84%
1.3 Margins
- In the last couple of years the Profit Margin of CABO has declined.
- CABO's Operating Margin of 27.83% is amongst the best of the industry. CABO outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of CABO has remained more or less at the same level.
- CABO has a better Gross Margin (73.89%) than 89.13% of its industry peers.
- In the last couple of years the Gross Margin of CABO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.83% | ||
| PM (TTM) | N/A | ||
| GM | 73.89% |
OM growth 3Y-0.38%
OM growth 5Y0.86%
PM growth 3Y-63.05%
PM growth 5Y-43.04%
GM growth 3Y0.91%
GM growth 5Y1.98%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CABO is still creating some value.
- Compared to 1 year ago, CABO has about the same amount of shares outstanding.
- CABO has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CABO is higher compared to a year ago.
2.2 Solvency
- CABO has an Altman-Z score of 0.80. This is a bad value and indicates that CABO is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.80, CABO is in line with its industry, outperforming 51.09% of the companies in the same industry.
- CABO has a debt to FCF ratio of 10.88. This is a negative value and a sign of low solvency as CABO would need 10.88 years to pay back of all of its debts.
- CABO's Debt to FCF ratio of 10.88 is fine compared to the rest of the industry. CABO outperforms 65.22% of its industry peers.
- A Debt/Equity ratio of 1.88 is on the high side and indicates that CABO has dependencies on debt financing.
- CABO has a Debt to Equity ratio of 1.88. This is in the lower half of the industry: CABO underperforms 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 10.88 | ||
| Altman-Z | 0.8 |
ROIC/WACC1.54
WACC4.82%
2.3 Liquidity
- CABO has a Current Ratio of 0.38. This is a bad value and indicates that CABO is not financially healthy enough and could expect problems in meeting its short term obligations.
- CABO has a worse Current ratio (0.38) than 82.61% of its industry peers.
- CABO has a Quick Ratio of 0.38. This is a bad value and indicates that CABO is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.38, CABO is doing worse than 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
- The earnings per share for CABO have decreased strongly by -101.13% in the last year.
- CABO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.87% yearly.
- Looking at the last year, CABO shows a very negative growth in Revenue. The Revenue has decreased by -24.08% in the last year.
- Measured over the past years, CABO shows a small growth in Revenue. The Revenue has been growing by 6.22% on average per year.
EPS 1Y (TTM)-101.13%
EPS 3Y-49.37%
EPS 5Y-27.87%
EPS Q2Q%91.56%
Revenue 1Y (TTM)-24.08%
Revenue growth 3Y-0.55%
Revenue growth 5Y6.22%
Sales Q2Q%-4.46%
3.2 Future
- The Earnings Per Share is expected to grow by 21.12% on average over the next years. This is a very strong growth
- The Revenue is expected to decrease by -3.14% on average over the next years.
EPS Next Y-474.22%
EPS Next 2Y110.9%
EPS Next 3Y43.14%
EPS Next 5Y21.12%
Revenue Next Year-4.77%
Revenue Next 2Y-4.24%
Revenue Next 3Y-2.33%
Revenue Next 5Y-3.14%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- CABO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Based on the Price/Forward Earnings ratio of 2.80, the valuation of CABO can be described as very cheap.
- CABO's Price/Forward Earnings ratio is rather cheap when compared to the industry. CABO is cheaper than 96.74% of the companies in the same industry.
- CABO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.8 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CABO indicates a rather cheap valuation: CABO is cheaper than 93.48% of the companies listed in the same industry.
- 96.74% of the companies in the same industry are more expensive than CABO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.41 | ||
| EV/EBITDA | 4.61 |
4.3 Compensation for Growth
- CABO has a very decent profitability rating, which may justify a higher PE ratio.
- CABO's earnings are expected to grow with 43.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y110.9%
EPS Next 3Y43.14%
5. Dividend
5.1 Amount
- CABO has a Yearly Dividend Yield of 3.66%.
- In the last 3 months the price of CABO has falen by -49.07%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 1.22, CABO pays a better dividend. On top of this CABO pays more dividend than 85.87% of the companies listed in the same industry.
- CABO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
- The dividend of CABO is nicely growing with an annual growth rate of 7.27%!
- CABO has been paying a dividend for at least 10 years, so it has a reliable track record.
- As CABO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.27%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
- CABO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The dividend of CABO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-7.52%
EPS Next 2Y110.9%
EPS Next 3Y43.14%
CABLE ONE INC / CABO FAQ
Can you provide the ChartMill fundamental rating for CABLE ONE INC?
ChartMill assigns a fundamental rating of 4 / 10 to CABO.
What is the valuation status for CABO stock?
ChartMill assigns a valuation rating of 6 / 10 to CABLE ONE INC (CABO). This can be considered as Fairly Valued.
Can you provide the profitability details for CABLE ONE INC?
CABLE ONE INC (CABO) has a profitability rating of 6 / 10.
What is the earnings growth outlook for CABLE ONE INC?
The Earnings per Share (EPS) of CABLE ONE INC (CABO) is expected to decline by -474.22% in the next year.