Entering text into the input field will update the search result below

Cable One Vs. Uniti Group: An Early Mover Vs. A Laggard

May 02, 2021 7:13 PM ETCABO, UNIT, WINMQ8 Comments
Nils de Graaf profile picture
Nils de Graaf


  • Cable One more than doubled its income per share over the last 5 years.
  • CABO shows the future: high-speed internet is where the money is, not TV.
  • Uniti/Windstream still have some work to do to achieve the new 1 gigabit/s benchmark.
  • Uniti’s $1.75 billion two million home fiber programme will make the company far more valuable.

Katje en een stapel knaagde draden.
Photo by Voren1/iStock via Getty Images

This article gives you a brief summary of the success of Cable One (CABO) over the last five years after the company, already in 2012, acknowledged that the future was in high-speed internet and

This article was written by

Nils de Graaf profile picture
I have a structured finance background, securitisations. Currently I am an opportunistic asset manager.

Analyst’s Disclosure: I am/we are long UNIT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (8)

I'm having trouble understanding the comparison as a way to value UNIT.

And the elephant in the room is that UNIT's management's core competency is the destruction of capital. So until that is changed, the rest is not relevant.
Nils de Graaf profile picture
Uniti is pretty transparant where it come to cost of acquisitions versus income. Uniti Fiber generates 108 million of ebitda for an investment of 1.5 billion, or 7.4%. Maybe not great but to call that ‘destruction of capital’.
@davidbdc He's comparing olives and pears, there's no comp here. And yes destruction of capital is the right word. Gundy must go. Stock will fly with the right management.
@Nils de Graaf Why did they cut their dividend yet retain their business; mmt is faulty to the shareholder investment.
Nils de Graaf profile picture
Since I am not familiar with the technical aspects of telecom, I hope some readers can help me on some questions I have after writing this article:

What does 1 gigabit/s in practice mean? Is this maximum speed or average? What can you expect the speed will be during the bussiest times of the day?

Hargray has 99% 1 gigabit/s speeds. It is still investing a lot. Does anybody have an idea where all that mony goes to?

And on the GCI programme:
In what footprint is Windstream investing the 1.75bn? Is that to upgrade the 100 megabit/s to 1 gigabit? To what extent? Is there so much added value in a 1 gig vs 100 megabit network? Isn’t 100 meg more than good enough? Is $900 per connection worth the spending if it is only to upgrade from an already high level?
@Nils de Graaf Yes. For TV/Internet/Phone is 100Mb OK. This is not shared so in ideal case its maximum and average at the same time:-) The point is they have optical cable in the ground. The rest whether is 100Mb or 1Gb is question of which network infrastructure they use .This is where they investing. $900 per connection is definitely worth. You get it back in 1-2 years. ...Possible added value: marketing, gaming, cloud based services...Home office is data bandwith consuming...
@AvanCap Breakeven of 1-2 years. Thank You. As opposed to the 8-10 year breakeven Gundy loves so much. Which caused the stock to be moribund for years.
2 different companys 2 different business models 2 differnt everything frankly... No surprise to me you still have a telco issue... thanks for trying out..Nils..
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

Related Stocks

SymbolLast Price% Chg
Cable One, Inc.
Uniti Group Inc.
Windstream Holdings, Inc.

Related Analysis

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.