Cable One, Inc.

CABO

Cable & Other Pay Television Services

Mkt Cap

$2.07B

PE

8.04

Debt

$3.645B

Cash

$210.7M

EV

$5.504B

FCF

$325.3M

Market Cap

$2.07B

P/E Ratio

8.04

Debt

$3.645B

Cash

$210.7M

EV

$5.504B

FCF

$325.3M

Charts data: {"Earnings":[{"time":"2014-12-30","value":147309000},{"time":"2015-12-30","value":89033000},{"time":"2016-12-30","value":98939000},{"time":"2017-12-30","value":234028000},{"time":"2018-12-30","value":164760000},{"time":"2019-12-30","value":178582000},{"time":"2020-12-30","value":304391000},{"time":"2021-12-30","value":291824000},{"time":"2022-12-30","value":234118000},{"time":"2023-12-30","value":267436000}],"Sales":[{"time":"2014-12-30","value":814812000},{"time":"2015-12-30","value":807266000},{"time":"2016-12-30","value":819625000},{"time":"2017-12-30","value":960029000},{"time":"2018-12-30","value":1072295000},{"time":"2019-12-30","value":1167997000},{"time":"2020-12-30","value":1325229000},{"time":"2021-12-30","value":1605836000},{"time":"2022-12-30","value":1706043000},{"time":"2023-12-30","value":1678081000}],"Net Margins":[{"time":"2014-12-30","value":0.1807889427254385},{"time":"2015-12-30","value":0.11028954520566951},{"time":"2016-12-30","value":0.12071252096995577},{"time":"2017-12-30","value":0.24377180272679264},{"time":"2018-12-30","value":0.15365174695396322},{"time":"2019-12-30","value":0.15289594065738182},{"time":"2020-12-30","value":0.22968935934845977},{"time":"2021-12-30","value":0.1817271502195741},{"time":"2022-12-30","value":0.1372286630524553},{"time":"2023-12-30","value":0.15937013767511818}],"Assets":[{"time":"2014-12-30","value":1262040000},{"time":"2015-12-30","value":1408595000},{"time":"2016-12-30","value":1397271000},{"time":"2017-12-30","value":2218329000},{"time":"2018-12-30","value":2303234000},{"time":"2019-12-30","value":3151831000},{"time":"2020-12-30","value":4488338000},{"time":"2021-12-30","value":6953994000},{"time":"2022-12-30","value":6913890000},{"time":"2023-12-30","value":6846933000}],"Stockholders Equity":[{"time":"2014-12-30","value":853288000},{"time":"2015-12-30","value":435346000},{"time":"2016-12-30","value":454511000},{"time":"2017-12-30","value":671416000},{"time":"2018-12-30","value":775358000},{"time":"2019-12-30","value":841569000},{"time":"2020-12-30","value":1495299000},{"time":"2021-12-30","value":1793095000},{"time":"2022-12-30","value":1757973000},{"time":"2023-12-30","value":1873145000}],"ROE":[{"time":"2014-12-30","value":0.17263690571061588},{"time":"2015-12-30","value":0.20451089478254078},{"time":"2016-12-30","value":0.21768230031836414},{"time":"2017-12-30","value":0.3485588666340987},{"time":"2018-12-30","value":0.212495389226654},{"time":"2019-12-30","value":0.21220125741323648},{"time":"2020-12-30","value":0.20356530700548853},{"time":"2021-12-30","value":0.16274876679707434},{"time":"2022-12-30","value":0.13317496912637453},{"time":"2023-12-30","value":0.14277378419716574}],"ROA":[{"time":"2014-12-30","value":0.18859069443123833},{"time":"2015-12-30","value":0.11482505617299507},{"time":"2016-12-30","value":0.13469613267576583},{"time":"2017-12-30","value":0.10638503125550809},{"time":"2018-12-30","value":0.11826805265986869},{"time":"2019-12-30","value":0.09849861873939307},{"time":"2020-12-30","value":0.10457100156004294},{"time":"2021-12-30","value":0.0656560819580805},{"time":"2022-12-30","value":0.07795741615790822},{"time":"2023-12-30","value":0.0849348168004565}]}

Cable One, Inc., together with its subsidiaries, provides data, video, and voice services in the United States. The company offers residential data services, a service to enhance Wi-Fi signal throughout the home. It also provides various residential video services from basic video service to digital services with access to hundreds of channels; and provides a cloud-based DVR feature that does not require the use of a set-top boxes. In addition, the company offers Sparklight TV, an IPTV video service that allows customers to stream its video channels from the cloud through an app on supported devices, such as the Amazon Firestick, Apple TV, and Android-based smart televisions. Further, it provides data, voice, and video products to business customers, including small to mid-markets, enterprises, and wholesale and carrier customers. As of December 31, 2022, the company served approximately 1.1 million residential and business customers, comprising approximately 1,060,000 subscribed to data services, 182,000 subscribed to video services, and 132,000 subscribed to voice services. Cable One, Inc. was incorporated in 1980 and is headquartered in Phoenix, Arizona.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
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9/30/22
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3/31/22
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12/31/21
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3/31/21
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10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Cable One, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$325.3M	$378.1M	$434.7M	$494.4M	$556.1M	$618.6M	$680.4M	$739.8M	$795.3M	$845M	$887.2M	$8.872B
DCF		$328.8M	$328.7M	$325.1M	$318M	$307.6M	$294.1M	$278.1M	$260M	$240.2M	$219.3M	$2.193B
Value	$5.093B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 10%

Earnings Stability 25%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	11%	12%	24%	15%	15%	23%	18%	14%	16%	15%
ROA	11%	13%	11%	12%	9.8%	10%	6.6%	7.8%	8.5%	8.2%
ROE	20%	22%	35%	21%	21%	20%	16%	13%	14%	13%

What is the average Net Margin?

The average Net Margin over the past 5 years is +16.91%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.19%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +9.16%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.76%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +17.78%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.79%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	4.19	8.33	6.32	7.79	7.91	12.57	12.05	12.66	11.20
Debt Equity	1.27	1.21	1.80	1.55	2.12	1.49	2.19	2.22	1.98	1.89
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	91%	97%	91%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 11.20.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.40.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.91.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	11%	9.4%	8.2%	-1.6%	0.35%
Net Income	15%	10%	-4.2%	14%	-0.98%
Stockholders Equity	22%	19%	7.8%	6.6%	3.5%
FCF	12%	9%	1.3%	-9.8%	-18%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.37%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.35%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +10.17%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.98%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +19.29%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +3.49%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +8.98%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -18.27%.