Cable One: 15% Equity FCF Yield, Below Replacement Value, Inflecting Fundamentals
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Cable One (CABO) is trading at a near 15% equity free cash flow yield, suggesting it is well discounted. The company benefits from a less competitive rural network and is cheaper to buy than to compete with. Despite a poor MBI transaction, the stock appears overly discounted.
December 17, 2024 | 8:30 am
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Cable One is trading at a near 15% equity free cash flow yield, indicating a potential undervaluation. The company's rural network is less competitive, making it cheaper to buy than to compete with. Despite a poor MBI transaction, the stock seems overly discounted.
The high equity free cash flow yield suggests that Cable One is undervalued. The company's strong position in a less competitive rural market adds to its attractiveness. Although the MBI transaction was not favorable, the market may have overly discounted the stock, presenting a buying opportunity.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100