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Altice USA: Business And Balance Sheet Challenges Set To Persist
Nov. 03, 2023 11:06 AM ETAltice USA, Inc. (ATUS)CABO, CHTR, CMCSA, TMUS, VZ11 Comments
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Summary
Altice USA has significantly underperformed its peers and the S&P 500 since going public.
ATUS faces business challenges due to its declining traditional pay-TV business and competition from fixed wireless access players.
ATUS has a highly leveraged balance sheet and it is difficult to see how it will be able to refinance its debt given the current interest rate environment.
ATUS is currently trading at a valuation which is mostly in line with higher quality peers such as CMCSA and CHTR.
I expect ATUS' challenges to continue and I am initiating coverage with a sell rating.
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Altice USA, Inc. (NYSE:ATUS) has been a very disappointing investment for anyone who participated in the company's 2017 IPO. Since then, ATUS has delivered a total return of -90% compared to a total return of 92% delivered by the S&P 500.

In addition to underperforming the S&P 500, ATUS has significantly underperformed peers such as Comcast (CMCSA), Charter Communications (CHTR), and Cable One, Inc. (CABO).

ATUS shares have struggled due to a decline in the traditional pay-TV business, broadband competition from fixed wireless access ("FWA") players such as Verizon (VZ) and T-Mobile (TMUS), as well as balance sheet concerns related to rising interest rates.

In my view, these challenges are not likely to go away anytime soon and thus ATUS is an unattractive investment at current levels.

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8 replies (most recent on top)

This place is so screwed, Infuriating because the employees will suffer

Then you were born in July because it got down to almost $2 in June.

I’ve never seen the stock this low

And they shorted the stock all the way down

👇 are correct. They even coned my union.

When you pay 45% of your work force ( or more) to leave, when you intentionally neglect your plant, when you intentionally let it fall into disrepair, when you acquire two companies with a proven track record of success and profitability and intentionally undo everything that made those companies a success I would have to say that failure was the goal all along. The failure of AUSA is not an accident or the result of bumbling id--ts, not at all. Everything that has happened since day one has been a well orchestrated effort. These people are not interested in building their wealth by running a successful business, that requires entirely too much work and is too risky. These people are nothing but con artists at the highest level. They have coned Wall Street, investors, employees,, contractors, vendors and customers. The ones sitting at the top of this scheme already have an exit plan in place and are just waiting for the right time to execute it. With the indictments happening in Europe and the ones that are surely to come here in the states I’d say another 18 to 24 months and those at the top of the scheme will ride off into the sunset with their bags stuffed money while everyone else is left holding them.

P.D will be the next , Sam Bankman Fried ftx fraudster

They failed because they pocketed all the cash.

Thread regarding Altice USA (Cablevision) layoffs

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