Optimum Communications Inc (OPTU) Stock Analysis
Verdict: AVOID
A crushing $26.5B debt overhang and negative FCF endanger equity value, with single-digit penny-stock volatility driven by insider accumulation.
Investment score: 25/100
Analysis as of
Is Optimum Communications Inc stock worth reviewing? The TradeMates thesis
The TradeMates model assigns an AVOID recommendation on OPTU due to extreme debt leverage ($26.5B debt), severe earnings misses, and negative free cash flow, making any long-term equity holding highly speculative.
7-factor investment score
- Valuation: 20/100 (weight 20%)
- Financial Health: 10/100 (weight 15%)
- Technical Momentum: 45/100 (weight 15%)
- Earnings Quality: 5/100 (weight 15%)
- Insider Sentiment: 70/100 (weight 10%)
- Analyst Consensus: 25/100 (weight 10%)
- Risk-Adjusted Return: 15/100 (weight 15%)
Optimum Communications Inc opportunities and risks
What speaks for OPTU
- Substantial Insider Accumulation
What speaks against OPTU
- Severe Debt Solvency and Insolvency Risk
Peers and competitors
- CHTR
- SIRI
- VSNT
- CABO
- TVTV
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| OPTU | n/a | 0.1x | 87.2x | 65.0% | -58.1% | -44.0% |
| CHTR | 3.5x | 0.3x | 5.7x | 56.6% | 9.1% | 24.0% |
| SIRI | 10.9x | 1.1x | 8.3x | 46.2% | 10.2% | 16.1% |
| VSNT | 7.1x | 0.8x | 3.1x | 48.6% | 11.5% | 42.6% |
| CABO | n/a | 0.1x | n/a | 56.2% | -72.8% | 230.4% |
| TVTV | 7.5x | 0.0x | n/a | 0.0% | 0.0% | -0.7% |
| Peer median | 7.1x | 0.3x | 3.1x | 48.6% | 9.1% | 24.0% |
Frequently asked questions about Optimum Communications Inc (OPTU)
Is OPTU stock a good investment?
The TradeMates model rates Optimum Communications Inc as AVOID with an investment score of 25/100. The TradeMates model assigns an AVOID recommendation on OPTU due to extreme debt leverage ($26.5B debt), severe earnings misses, and negative free cash flow, making any long-term equity holding highly speculative. This is algorithmic model output, not personal investment advice.
Is OPTU stock a buy?
The TradeMates model verdict for OPTU is AVOID with an investment score of 25/100. Treat this as a model signal to review, not a personal buy recommendation.