Présentation de l'entreprise
WideOpenWest, Inc. operates within the Communication Services sector, specifically focusing on the Telecom Services industry by delivering high-speed data, cable television, and digital telephony solutions to both residential and business clients across the United States. The company's video portfolio encompasses basic cable services featuring local broadcast television and community programming, alongside digital cable offerings that facilitate advanced connectivity for its subscriber base. As a publicly traded entity with the ticker symbol WOW, the company maintains a market capitalization of $445.86 million and employs a workforce of 1320 individuals to support its operational network. Its reported annual revenue stands at $590.80 million, figures that collectively define its scale as a mid-sized telecommunications provider rather than a dominant market leader.
Santé financière
The company reported a revenue of $590.80 million over the trailing twelve-month period, yet it posted a net income of -$78.00 million and an EBITDA of $213.40 million, highlighting a significant divergence where operating cash generation does not fully translate to bottom-line profitability. This gap between revenue and net income, coupled with a profit margin of -13.2%, reveals a cost structure where substantial expenses, likely related to debt servicing or amortization, are eroding the bottom line despite strong operational earnings. Free cash flow stands at -$22.11 million, indicating a current burn rate that limits the company's immediate financial flexibility and its ability to fund organic expansion without external capital raising. Despite this cash outflow, the firm holds $22.90 million in cash assets against a total debt load of $1.09 billion, resulting in a debt-to-equity ratio of 733.92 that characterizes a highly leveraged balance sheet. The current ratio of 0.58 further underscores potential short-term liquidity constraints, as current liabilities exceed current assets. Return on Equity is recorded at -42.8%, while Return on Assets sits at 0.4%, metrics that collectively suggest management is currently unable to generate significant shareholder value or efficient asset utilization relative to the capital base deployed.
Évaluation de la valorisation
Valuation metrics for WideOpenWest, Inc. present a complex picture, with a trailing P/E ratio listed as N/A due to the absence of positive net income, while the forward P/E is calculated at -7.03, reflecting market expectations of continued earnings losses in the near term. The price-to-book ratio is 2.91, suggesting that the market is pricing the company at nearly three times its book value, which may indicate a premium assigned to its intangible assets or a valuation disconnect given the negative earnings. Alternative valuation measures such as the price-to-sales ratio of 0.75 and an EV/EBITDA of 7.00 provide context, showing that the company trades at a fraction of its sales revenue relative to its operational earnings power. The stock's trading range over the past year spans from a 52-week low of $3.06 to a high of $5.33, with the current market price of $4.11 positioned approximately 22.5% below the 52-week high. With a beta of 0.83, the stock exhibits volatility that is slightly lower than the broader market, implying that its price movements are moderately correlated with overall market fluctuations but may experience less extreme swings during periods of market stress.
Growth & Income
Revenue growth year-over-year has contracted by 8.9%, while earnings growth is effectively N/A given the negative net income position, indicating that the company is in a contractionary phase regarding both top-line sales and profitability. As a non-dividend payer, the company has a dividend yield of N/A and a payout ratio of 0.0%, meaning that all available earnings are theoretically available for reinvestment, though the negative earnings currently preclude any actual cash distribution to shareholders. The absence of a dividend program reflects the company's current priority on retaining capital to address its high debt levels and operational challenges rather than distributing income to investors. Overall, WideOpenWest, Inc. currently presents a profile characterized by revenue decline, negative earnings, and a lack of dividend income, positioning it as a high-risk growth story dependent on future operational improvements or strategic restructuring to restore profitability.