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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Cable One, Inc. (XNYS:CABO) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
CABO
Name:
CABLE ONE, INC. (XNYS:CABO)
Sector:
89.50M
Industry:
Telecom Services
CEO:
Ms. Julia Laulis
Total Employees:
3,628
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is 32.54% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF CABLE ONE, INC.(CABO) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND TELECOM SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
1127.55
One Month Price Target:
$1132.26
Six Month Price Target :
$1155.83
Likely Price in One Year's Time:
Ticker:
$1184.11
Likely Trading Range Today Under (Normal Volatility)
$1122.95
Price Upper limit ($) :
$1131.75
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$1074.13
This week:
$1008.09
This month :
$888.63
Other Primary facts
Market Cap:
6.43B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
5.88M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
12.68%
-13.96%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$1,375.69
$1,263.36
$879.41
$991.74
Medium risk (<10%) entry points
Buy Call
Sell Call
$1,226.80
Buy Put:
Sell Put:
$1,202.82
$1,028.00
$1,052.28
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
CABO
Sharpe Ratio:
-1.16%
Comparison:
CABO, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -219.24% lower than the industry
& is -150.87% lower than the market/S&P 500 average
Average Returns/Yield of
CABO
Daily returns:
-0.02%
Weekly returns:
-0.09%
Monthly returns:
-0.36%
Yearly returns:
17.77%
Comparison of returns:
Average annual returns/yield (last 3 years) is -124.03% below industry average
Classification:
CABO, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.44
Statistical test of Returns:
CABO has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.30%
Weekly Volatility:
5.14%
Monthly Volatility:
10.28%
Yearly Volatility:
35.61%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.03%
Volatility in last five trading days has been -11.62% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.74%
Weekly VaR:
-10.59%
Monthly VaR:
-21.19%
How Much Can the price of
CABO
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-19%
Worst case (decline):
-73.40%
This translates to price declining to:
$913.91
This translates to price declining to:
$299.92
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
CABO is a 49.55% riskier investment compared to the market/S&P 500 & is 28.12% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -32.56% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
CABO
Beta in relation to market/S&P 500--0.75
Expected beta in 1 year's time:
0.58
Expected beta in 3 year's time:
0.82
Unlevered (debt free) Beta:
0.28
Beta in relation to Nasdaq (XNAS):
0.762
Beta in relation to all global stocks::
0.758
Beta Comparison & Analysis
Beta of competitors/peers::
0.706
Beta is 5.74% higher than peers
Average Industry Beta:
0.819
Beta is -8.81% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
16.50%
Sustainable growth rate is 62.33% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.125
Alpha is -239.04% below industry average alpha yield
Alpha is -798% below the market average
Analysis of Cost of Capital of
CABO
Equity cost of capital:
0.083
Equity cost of capital is -5.64% below industry mean WACC
Unlevered (without debt) cost of capital:
3.10%
Before-tax cost of debt:
3.12%
After-tax cost of debt:
2.47%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.47%
WACC is -9.65% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$287.67
Revenue growth rate per share of (3Y):
3.42
Annual revenue growth rate is -89.44% below industry average
EPS:
$62.13
Expected Annual growth rate of EPS (3Y):
13.91%
Expected future EPS growth rate is -43.82% lower than the Telecom Services industry
Free cash flow (FCF) per share:
$51.75
Balance sheet equity growth per share: 39.82%
Equity growth rate per share is -350.35% lower than the industry
Debt per share
$645.65
EBITDA per share
$160.33
Valuation Analysis Today of
CABO
P/E Ratio:
19.93
P/E Ratio of Competitors/Peers:
14.65
P/E ratio is 36.10% higher than main peers & is -32.45% lower than the industry
Stock price/value with industry average P/E ratio: $1,833.34
CABO is -38.50% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $198.24
Present value of the expected future dividends only: $182.53
P/S (Price to Sales ratio):
3.92
Price to sales ratio is -37.34% below the industry mean
P/B (Price to book value ratio):
3.42
Price to free cash flow: 21.79
-
Net income growth rate (3Y):
67.26%
Net income growth rate is -83.47% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 4.22%
Dividend yeild: 0.98%
Previous Dividend: $2.75
Previous adjusted dividend: $2.75
Previous Dividend: $11.00
Expected next dividend best case: $2.92
Expected next dividend worst case: $2.58
Average dividend payment (long-term): $2.52
Average dividend increase/decrease (growth rate) % per period: 2.11%
Expected next dividend payment date: 15/09/2022
Expected next dividend record date: 29/08/2022
Expected next dividend declaration date: 18/08/2022
Previous dividend payment date: 17/06/2022
Previous dividend record date: 31/05/2022
Previous dividend declaration date: 20/05/2022
Dividend History:
2022-05-27--$2.75
2021-11-29--$2.75
2021-05-28--$2.50
2022-02-14--$2.75
2021-08-30--$2.75
2021-02-12--$2.50
Dividend growth rate is -163.29% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
196.06%
Net debt to equity ratio:
179.50%
Debt to assets ratio:
54.54%
Net debt to assets ratio:
49.94%
Debt-to-asset ratio is -28.65% below industry average
Ability to repay debt:
Interest coverage ratio:
7.86
Interest coverage ratio is 400.58% more than industry average
Looking forward:
Debt growth rate:
76.12%
Annual debt growth is -98% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.23%
Analysis of Key Statistics
Correlation of price movement with the market:
0.624
Statistical significance of correlation:
CABO has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.461
Stock price is 35.26% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.461
Correlation of price movement with Nasdaq (^IXIC):
-0.046
Covariance of price movement with the market:
-0.062
Kurtosis
5.375
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.224
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
CABO
Gross Profit Margin Ratio:
288%
Operating Profit Margin Ratio:
29.88%
Operating profit margin is 854.85% higher than the industry
Net Profit Margin Ratio:
288%
Effective Tax Rate:
15.14%
Effective tax rate is -53.10% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
20.39%
Return on equity (ROE) is -630.91% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
5.67%
Return on assets (ROA) is -3212.09% lower than the industry
Financial Leverage:
2.2x
Current Ratio:
1.87
Current ratio is 16.10% above industry average
Cash Conversion Cycle (days):
12.8
Cash conversion cycle is -81.94% below industry average
The remaining useful life of property plant & equipment is: 22.2 years
Stock based compensation to net income ratio:
1.32%
In-depth Efficiency Analysis
Revenue generated per employee:
466.2K
Each employee generates -54% less revenue than industry average revenue per employee
EBITDA generated per employee:
259.8K
Each employee generates -25% less EBITDA than industry average revenue per employee
Profit generated per employee:
108.8K
Each employee generates 4% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
24.7K
Each employee generates -57% less free cash flow than industry average revenue per employee
Assets/Capital per employee
1.8M
Each employee generates -57% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
CABO
DOLBY LABORATORIES, INC. (XNYS:DLB)
AUTOHOME INC. (XNYS:ATHM)
PEARSON PLC (XNYS:PSO)
THE NEW YORK TIMES COMPANY (XNYS:NYT)
Mobile TeleSystems Public Joint Stock Company (XNYS:MBT)
Telefonica Brasil SA (XNYS:VIV)
Grupo Televisa SAB (XNYS:TV)
FIVERR INTERNATIONAL LTD (XNYS:FVRR)
Shaw Communications Inc. (XNYS:SJR)
Current Analyst Ratings
Strong buy�0%
Buy�8%
Hold�4%
Sell�8%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
1.69B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
473.31M
1.22B
-
-
365.78M
-
358.41M
724.20M
-
119.95M
358.41M
942.63M
505.44M
394.72M
459.45M
69.55M
394.72M
Statement of Cash Flow
Date:
Period:
87.92M
Differed Income Tax :
23.79M
Stock Based Compensation :
5.21M
Change in Working Capital :
6.07M
Accounts Receivables:
3.29M
Other Working Capital:
494.00K
Other Non-Cash Items:
- 105739.00K
Net Cash Provided by Operating Activities:
188.72M
Investments in PP&E:
-
Net Acquisitions:
- 10673.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
368.17M
-
368.17M
58.20M
-
41.02M
467.38M
1.61B
927.98M
2.74B
1.18B
-
24.98M
6.49B
-
6.96B
35.64M
47.49M
8.88M
30.75M
135.43M
249.31M
3.80B
75.23M
4.77B
-
5.02B
62.00K
1.61B
- 25391.0K
350.12M
March 31, 2022 at 6:00:00 AM
1.20B
1.94B
6.96B
-
3.84B
3.5B
-
- 98973.00K
- 109646.00K
- 8676.00K
-
- 69695.00K
- 16662.00K
- 4676.00K
- 99709.00K
-
- 20636.00K
368.17M
388.80M
188.72M
- 99223.00K
89.50M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
CABO
2023
2024
2025
2026
2027
$1,351.90
$1,419.72
$1,490.94
$1,565.73
$1,644.28