Cable One, Inc.
CABO
Cable & Other Pay Television Services
Mkt Cap
$3.093BPE
41.27Debt
$3.754BCash
$239.6MEV
$6.607BFCF
$317.5MP/E Ratio
41.27Debt
$3.754BCash
$239.6MEV
$6.607BFCF
$317.5MCable 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.
DCF
Discounted Cash Flow Valuation of Cable One, Inc.
Value
Growth
%
%
Discount
%
%
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 | $317.5M | $385.9M | $461.9M | $544.4M | $631.7M | $721.3M | $810.4M | $895.6M | $973.3M | $1.04B | $1.092B | $10.92B |
| DCF | $335.5M | $349.3M | $358M | $361.2M | $358.6M | $350.4M | $336.7M | $318.2M | $295.6M | $269.9M | $2.699B | |
| Value | $6.032B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 9.4%
Earnings Stability 22%
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.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 18% | 11% | 12% | 24% | 15% | 15% | 23% | 18% | 14% | 4.4% |
| ROA | 19% | 11% | 13% | 11% | 12% | 9.8% | 10% | 6.6% | 7.8% | 6.4% |
| ROE | 17% | 20% | 22% | 35% | 21% | 21% | 20% | 16% | 13% | 4.2% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +18.32%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -1.06%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +9.52%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.84%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +21.21%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -3.53%.
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.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | 4.19 | 8.33 | 6.32 | 7.79 | 7.91 | 12.57 | 12.05 | 11.83 |
| Debt Equity | - | 1.27 | 1.21 | 1.80 | 1.55 | 2.12 | 1.49 | 2.19 | 2.22 | 2.08 |
| MIN | ||||||||||
| Graham Stability | - | - | 87% | 100% | 100% | 100% | 100% | 100% | 91% | 87% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 11.83.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 1.07.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.87.
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.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 11% | 12% | 13% | 6.2% | 1.9% |
| Net Income | 15% | 0.0077% | 9.4% | -20% | -2.4% |
| Stockholders Equity | 22% | 21% | 28% | -2% | 5% |
| FCF | 19% | 17% | 12% | 3.7% | -6.7% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +12.19%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +1.87%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +0.01%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -2.44%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +21.23%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +4.96%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +17.42%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -6.72%.