Cox Enterprises Inc.

This report does not constitute a rating action. Overview Key strengths Key risks Superior broadband speeds relative to competition in most markets. Increased competition from lower-priced fixed wireless access (FWA) service. High barriers to entry given capital spending and rights of way. Increased roll-out of competing fiber-to-the-home (FTTH) technology. Solid market share with about 50% broadband penetration. Above-average revenue per user (ARPU) could make it difficult to grow broadband revenue. Diversity provided by autos segment. Conservative financial policy. Cox?s S&P Global Ratings-adjusted net debt to EBITDA was 2.4x as of Dec. 31, 2024, relative to our downgrade trigger of 3.0x. We expect the company to generate roughly $1.5 billion of FOCF per year, which should allow it to reduce leverage

...Cox Enterprises Inc.'s low leverage and healthy free operating cash flow (FOCF) provide it with financial flexibility. Cox's S&P Global Ratings-adjusted net debt to EBITDA was 2.4x as of Dec. 31, 2024, relative to our downgrade trigger of 3.0x. We expect the company to generate roughly $1.5 billion of FOCF per year, which should allow it to reduce leverage by about 0.3x per year, as consolidated earnings likely remain relatively flat for the next two to three years. We...

Full Report