📊 CABO Key Takeaways
Is Cable One, Inc. (CABO) a Good Investment?
Cable One faces structural headwinds with declining revenues (-4.9% YoY) in a mature industry disrupted by streaming, while maintaining elevated leverage (2.11x D/E) and weak capital returns (2.4% ROE, 0.6% ROA). Although operational margins are solid at 24.5% and free cash flow remains positive, tight interest coverage (2.9x) and substantial capex requirements ($68.4M annually) leave limited financial flexibility if revenue deterioration accelerates.
Cable One's fundamentals show a sharp deterioration in profitability, with revenue declining, operating income turning negative, and net losses expanding severely. While the business still generates solid operating cash flow and positive free cash flow, weak liquidity, high leverage, and negative interest coverage materially increase financial risk. The core issue is poor earnings quality relative to cash generation, which suggests the balance sheet and operating trend need stabilization before fundamentals improve.
Why Buy Cable One, Inc. Stock? CABO Key Strengths
- Strong operating margin of 24.5% demonstrates operational efficiency
- Positive free cash flow generation of $49.8M with 14.1% FCF margin
- Adequate liquidity with current ratio of 1.75x and quick ratio of 1.72x
- Positive operating cash flow of $563.33M supports ongoing operations
- Free cash flow of $278.07M and 18.5% FCF margin show the business still converts revenue into cash
- Asset base and $1.43B of equity provide some balance sheet support despite pressure
CABO Stock Risks: Cable One, Inc. Investment Risks
- Revenue decline of 4.9% YoY indicating structural industry headwinds and cord-cutting pressure
- High financial leverage at 2.11x Debt/Equity ratio with $3.1B long-term debt limiting financial flexibility
- Tight interest coverage ratio of 2.9x leaves minimal buffer for operational deterioration
- Weak returns on equity (2.4%) and assets (0.6%) despite positive cash flow indicate poor capital allocation
- Revenue declined 4.9% YoY, indicating weakening top-line demand or subscriber pressure
- Profitability collapsed with -13.8% operating margin and -23.7% net margin
- Leverage and liquidity are strained, with 2.24x debt-to-equity, 0.40x current ratio, and negative interest coverage
Key Metrics to Watch
- Revenue trajectory and subscriber churn rates
- Interest coverage ratio and debt paydown progress
- Free cash flow sustainability relative to capex requirements
- Operating margin compression risk in declining revenue environment
- Revenue trend and operating margin recovery
- Free cash flow sustainability relative to debt service and interest coverage
Cable One, Inc. (CABO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Cable One, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CABO Profit Margin, ROE & Profitability Analysis
CABO vs Telecom Sector: How Cable One, Inc. Compares
How Cable One, Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cable One, Inc. Stock Overvalued? CABO Valuation Analysis 2026
Based on fundamental analysis, Cable One, Inc. shows some fundamental concerns relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cable One, Inc. Balance Sheet: CABO Debt, Cash & Liquidity
CABO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cable One, Inc.'s revenue has shown modest growth of 4% over the 5-year period. The most recent EPS of $38.08 reflects profitable operations.
CABO Revenue Growth, EPS Growth & YoY Performance
CABO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $353.0M | $2.6M | $0.46 |
| Q3 2025 | $376.0M | $44.2M | $2.57 |
| Q2 2025 | $381.1M | $38.2M | $2.57 |
| Q1 2025 | $380.6M | $2.6M | $0.46 |
| Q3 2024 | $393.6M | $30.3M | $5.29 |
| Q2 2024 | $394.5M | $47.6M | $8.16 |
| Q1 2024 | $404.3M | $47.3M | $8.11 |
| Q3 2023 | $420.3M | $39.5M | $6.81 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cable One, Inc. Dividends, Buybacks & Capital Allocation
CABO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cable One, Inc. (CIK: 0001632127)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CABO
What is the AI rating for CABO?
Cable One, Inc. (CABO) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CABO's key strengths?
Claude: Strong operating margin of 24.5% demonstrates operational efficiency. Positive free cash flow generation of $49.8M with 14.1% FCF margin. ChatGPT: Positive operating cash flow of $563.33M supports ongoing operations. Free cash flow of $278.07M and 18.5% FCF margin show the business still converts revenue into cash.
What are the risks of investing in CABO?
Claude: Revenue decline of 4.9% YoY indicating structural industry headwinds and cord-cutting pressure. High financial leverage at 2.11x Debt/Equity ratio with $3.1B long-term debt limiting financial flexibility. ChatGPT: Revenue declined 4.9% YoY, indicating weakening top-line demand or subscriber pressure. Profitability collapsed with -13.8% operating margin and -23.7% net margin.
What is CABO's revenue and growth?
Cable One, Inc. reported revenue of $353.0M.
Does CABO pay dividends?
Cable One, Inc. does not currently pay dividends.
Where can I find CABO SEC filings?
Official SEC filings for Cable One, Inc. (CIK: 0001632127) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CABO's EPS?
Cable One, Inc. has a diluted EPS of $6.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CABO a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Cable One, Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CABO stock overvalued or undervalued?
Valuation metrics for CABO: ROE of 2.4% (sector avg: 15%), net margin of 10.1% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy CABO stock in 2026?
Our dual AI analysis gives Cable One, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CABO's free cash flow?
Cable One, Inc.'s operating cash flow is $118.2M, with capital expenditures of $68.4M. FCF margin is 14.1%.
How does CABO compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 10.1% (avg: 14%), ROE 2.4% (avg: 15%), current ratio 1.75 (avg: 1).
Is Cable One, Inc. carrying too much debt?
CABO has a debt-to-equity ratio of 2.11x, which is above the Telecom sector average of 1.2x. However, the current ratio of 1.75 suggests adequate short-term liquidity.