Company Overview
WideOpenWest, Inc. operates as a provider of high-speed data, cable television, and digital telephony services catering to both residential and business customers across the United States. The company functions within the Communication Services sector, specifically the Telecom Services industry, positioning it as a critical infrastructure player in the digital economy. Its operational scale is characterized by a market capitalization of $445.86M, an annual revenue of $590.80M, and a workforce comprising 1320 employees. These valuation and revenue figures indicate that WideOpenWest maintains a mid-cap presence in the telecommunications landscape, generating substantial gross revenue while operating with a relatively compact employee base compared to national giants. The company's focus on basic cable services, local broadcast television, and local community programming underscores its role in delivering essential entertainment and communication utilities to specific geographic markets.
Financial Health
The company reported revenue of $590.80M over the trailing twelve months, yet recorded a net income of -$78,000,000 and an EBITDA of $213.40M. The significant disparity between the positive EBITDA and the negative net income reveals a substantial cost structure dominated by interest expenses or other non-operating charges that erode operating profits. Free cash flow stands at -$22,112,500, indicating that the company is currently consuming cash to fund its operations and capital expenditures rather than generating excess liquidity for distribution. Despite this cash burn, the gross margin remains robust at 62.3%, suggesting that the core business model effectively passes costs to customers or maintains high pricing power on its video and data services. However, the operating margin is thin at 1.6%, and the profit margin is negative at -13.2%, highlighting the intense pressure from overhead costs and financing obligations that prevent profitability from converting operating efficiency into bottom-line gains. The balance sheet shows a cash position of $22.90M against total debt of $1.09B, resulting in a debt-to-equity ratio of 733.92, which signifies a highly leveraged capital structure. This leverage is further reflected in the current ratio of 0.58, a figure that indicates the company possesses fewer current assets than current liabilities, presenting potential challenges for short-term liquidity management. Furthermore, the return on equity is -42.8% and the return on assets is 0.4%, metrics that collectively reveal management's current inability to generate returns on the capital invested in the business.
Valuation Assessment
The trailing twelve-month P/E ratio is listed as N/A due to the negative earnings, while the forward P/E is -7.03, implying that the market is pricing in a continued period of negative earnings expectations. The price-to-book ratio is 2.91, which indicates that the market values the company at nearly three times its book value, a premium that may reflect intangible assets or strategic value not captured on the balance sheet. Alternative valuation metrics such as the price-to-sales ratio of 0.75 and the EV/EBITDA of 7.00 provide context, suggesting the stock trades at less than one dollar of sales per dollar of revenue and at a multiple that reflects its high debt load and earnings volatility. The stock's recent trading range spans a 52-week high of $5.33 and a 52-week low of $3.06, providing a benchmark for price volatility and investor sentiment over the last year. The beta of 0.83 suggests that the stock exhibits slightly lower volatility than the broader market, moving with a slight dampening effect relative to general market fluctuations.
Growth & Income
Revenue growth year-over-year is -8.9%, while earnings growth is N/A due to the absence of positive earnings in the prior period. The contraction in revenue indicates a shrinking top line, and since earnings are negative, the traditional comparison of earnings growth versus revenue growth is not applicable in a conventional sense, as the company is currently in a loss-making phase. As a non-dividend payer with a dividend yield of N/A and a payout ratio of 0.0%, the company retains all available cash, though currently insufficient to cover debt obligations, rather than distributing income to shareholders. This reinvestment strategy, combined with the current lack of profitability, suggests the company is in a restructuring or turnaround phase where capital preservation is prioritized over shareholder income distribution. The overall growth and income profile is defined by revenue contraction and a complete absence of dividend income, reflecting a company focused on operational survival and debt management rather than expansion or income generation.