Cablevision Systems ACVC

Morningstar Rating

Stock Research and Analysis

by Tom Corbett

Cablevision has built a solid cable franchise, but we believe maturation of the markets it serves and Verizon's VZ steady encroachment on the business will limit cash flow growth. In addition, investing alongside the Dolan family isn't particularly Read more

Bulls Say

The company's primary service footprint is in the densely populated New York City metroplex, whose technologically progressive and wealthy population is receptive to its premium data and video offerings.

Cablevision's entertainment assets include Madison Square Garden, Radio City Music Hall, and several sports teams, whose intangible values are not recognized on its balance sheet.

From 2003 through 2008, the company's revenue-generating units (RGUs, the sum of subscribers to each of its services) have grown at an average annual rate of 16%. Read more

Bears Say

The company's substantial debt burden may limit its ability to make future upgrades to its infrastructure, making it tougher to fend off competitors.

Its recent $650 million acquisition of Newsday from Tribune Company has magnified Cablevision's exposure to the woes facing the newspaper industry, which we view as an industry in a protracted state of decline.

In 2006, the company financed a one-time $10-per-share dividend by borrowing more than $3 billion, leaving the Dolan family substantially richer but larding the balance sheet with incremental debt. Read more

Strategy

Cablevision focuses its sales efforts on maximizing the number of its services sold to existing customers. The company also seeks to maximize its market penetration rate, or the number of households Read more

Management

Charles F. Dolan founded Cablevision in 1973 and has served as its chairman since 1985. Six sons and daughters currently serve in various executive and board capacities, including his son, James L. Dolan, who retains the president, director, and CEO Read more

Profile

Cablevision is one of the largest multimedia companies in the United States. Its operations span four distinct segments: A cable TV and high-speed data business, several Read more

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