Altice USA Inc Class A
ATUS: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$9.00 | Wjyytd | Mhsx |
Altice USA Needs to Improve Execution to Deliver Value for Shareholders
Business Strategy and Outlook
Altice USA has struggled to maintain revenue growth recently--more than cable peers Comcast and Charter--as it battles stiff competition from Verizon in the New York market. The firm has broken from its peers with plans to aggressively upgrade its networks with fiber rather than rely on traditional cable network technology. This strategy will sharply curtail free cash flow over the next few years. Still, we expect the firm’s networks will remain vital pieces of infrastructure that will generate strong, albeit slow growing, cash flow over the long term.