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WIDEOPENWEST INC (WOW) Stock Fundamental Analysis

NYSE:WOW - New York Stock Exchange, Inc. - US96758W1018 - Common Stock - Currency: USD

4.79  -0.12 (-2.44%)

After market: 4.79 0 (0%)

Fundamental Rating

1

Taking everything into account, WOW scores 1 out of 10 in our fundamental rating. WOW was compared to 93 industry peers in the Media industry. WOW may be in some trouble as it scores bad on both profitability and health. WOW is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

WOW had negative earnings in the past year.
In the past year WOW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WOW reported negative net income in multiple years.
Each year in the past 5 years WOW had a positive operating cash flow.
WOW Yearly Net Income VS EBIT VS OCF VS FCFWOW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M

1.2 Ratios

The Return On Assets of WOW (-6.14%) is worse than 68.97% of its industry peers.
WOW has a Return On Equity of -42.34%. This is in the lower half of the industry: WOW underperforms 73.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.35%, WOW is doing worse than 63.22% of the companies in the same industry.
Industry RankSector Rank
ROA -6.14%
ROE -42.34%
ROIC 1.35%
ROA(3y)7.09%
ROA(5y)4.66%
ROE(3y)7.71%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
WOW Yearly ROA, ROE, ROICWOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100

1.3 Margins

WOW has a Operating Margin of 3.49%. This is in the lower half of the industry: WOW underperforms 62.07% of its industry peers.
WOW does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM 3.49%
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
WOW Yearly Profit, Operating, Gross MarginsWOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 100

0

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WOW is destroying value.
WOW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WOW has more shares outstanding
The debt/assets ratio for WOW is higher compared to a year ago.
WOW Yearly Shares OutstandingWOW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
WOW Yearly Total Debt VS Total AssetsWOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

Based on the Altman-Z score of 0.59, we must say that WOW is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.59, WOW is not doing good in the industry: 63.22% of the companies in the same industry are doing better.
A Debt/Equity ratio of 4.41 is on the high side and indicates that WOW has dependencies on debt financing.
The Debt to Equity ratio of WOW (4.41) is worse than 85.06% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.41
Debt/FCF N/A
Altman-Z 0.59
ROIC/WACC0.15
WACC8.96%
WOW Yearly LT Debt VS Equity VS FCFWOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B

2.3 Liquidity

A Current Ratio of 0.58 indicates that WOW may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.58, WOW is doing worse than 91.95% of the companies in the same industry.
WOW has a Quick Ratio of 0.58. This is a bad value and indicates that WOW is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.58, WOW is not doing good in the industry: 90.80% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.58
Quick Ratio 0.58
WOW Yearly Current Assets VS Current LiabilitesWOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 29.11% over the past year.
Looking at the last year, WOW shows a decrease in Revenue. The Revenue has decreased by -7.35% in the last year.
WOW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.86% yearly.
EPS 1Y (TTM)29.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%79.07%
Revenue 1Y (TTM)-7.35%
Revenue growth 3Y-2.03%
Revenue growth 5Y-9.86%
Sales Q2Q%-8.72%

3.2 Future

WOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.81% yearly.
WOW is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.10% yearly.
EPS Next Y63.21%
EPS Next 2Y30.34%
EPS Next 3Y18.81%
EPS Next 5YN/A
Revenue Next Year-8.12%
Revenue Next 2Y-7.66%
Revenue Next 3Y-5.91%
Revenue Next 5Y-5.1%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
WOW Yearly Revenue VS EstimatesWOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
WOW Yearly EPS VS EstimatesWOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 6

1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for WOW. In the last year negative earnings were reported.
Also next year WOW is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
WOW Price Earnings VS Forward Price EarningsWOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WOW indicates a rather cheap valuation: WOW is cheaper than 81.61% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 5.84
WOW Per share dataWOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

4.3 Compensation for Growth

A more expensive valuation may be justified as WOW's earnings are expected to grow with 18.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.34%
EPS Next 3Y18.81%

0

5. Dividend

5.1 Amount

WOW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

WIDEOPENWEST INC

NYSE:WOW (2/21/2025, 8:04:00 PM)

After market: 4.79 0 (0%)

4.79

-0.12 (-2.44%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-05 2025-05-05/bmo
Inst Owners42.2%
Inst Owner Change-94.61%
Ins Owners1.6%
Ins Owner Change-0.88%
Market Cap406.10M
Analysts49.09
Price Target6.27 (30.9%)
Short Float %3.75%
Short Ratio6.5
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-76.13%
Min EPS beat(2)-160.81%
Max EPS beat(2)8.55%
EPS beat(4)1
Avg EPS beat(4)-985.23%
Min EPS beat(4)-3718.95%
Max EPS beat(4)8.55%
EPS beat(8)2
Avg EPS beat(8)-2503.72%
EPS beat(12)2
Avg EPS beat(12)-1688.67%
EPS beat(16)4
Avg EPS beat(16)-853%
Revenue beat(2)0
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-0.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)-0.65%
Revenue beat(8)1
Avg Revenue beat(8)-1.13%
Revenue beat(12)1
Avg Revenue beat(12)-1.43%
Revenue beat(16)1
Avg Revenue beat(16)-9.57%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)22.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.67%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.63
P/FCF N/A
P/OCF 2.29
P/B 1.87
P/tB N/A
EV/EBITDA 5.84
EPS(TTM)-1.12
EYN/A
EPS(NY)-0.59
Fwd EYN/A
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)2.09
OCFY43.71%
SpS7.63
BVpS2.55
TBVpS-3.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -6.14%
ROE -42.34%
ROCE 1.71%
ROIC 1.35%
ROICexc 1.37%
ROICexgc 2.24%
OM 3.49%
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)7.09%
ROA(5y)4.66%
ROE(3y)7.71%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 4.41
Debt/FCF N/A
Debt/EBITDA 4.11
Cap/Depr 116.64%
Cap/Sales 37.81%
Interest Coverage 0.28
Cash Conversion 76.38%
Profit Quality N/A
Current Ratio 0.58
Quick Ratio 0.58
Altman-Z 0.59
F-Score5
WACC8.96%
ROIC/WACC0.15
Cap/Depr(3y)110.42%
Cap/Depr(5y)110.56%
Cap/Sales(3y)30.5%
Cap/Sales(5y)31.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%79.07%
EPS Next Y63.21%
EPS Next 2Y30.34%
EPS Next 3Y18.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.35%
Revenue growth 3Y-2.03%
Revenue growth 5Y-9.86%
Sales Q2Q%-8.72%
Revenue Next Year-8.12%
Revenue Next 2Y-7.66%
Revenue Next 3Y-5.91%
Revenue Next 5Y-5.1%
EBIT growth 1Y323.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year215.73%
EBIT Next 3Y46.12%
EBIT Next 5Y32.93%
FCF growth 1Y71.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y326.69%
OCF growth 3Y-21.32%
OCF growth 5Y-12.89%