UZC - U.S. Cellular Ups CapEx Big Time To Keep The Business Stable

April, 17 2021 04:56 AM United States Cellular Corporation 7.25% Senior Notes due 2064

U.S. Cellular reported CapEx of $940 million in 2020, up from $710 million in 2019, and way up from $515 million in 2018.
ARPU, customer base and overall top line have remained stable in 2019 and 2020. The elevated CapEx levels have thus not yet translated to growth. The business performance remains practically unchanged.
There's no guarantee that the higher CapEx will lead to a growing business in 2021 or thereafter.
The added debt is no problem, but absence of growth will not help the U.S. Cellular shares. The baby bonds have an attractive risk-return profile and are a good way to take a position in the company.

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Company Name:	United States Cellular Corporation 7.25% Senior Notes due 2064
Stock Symbol:	UZC
Market:	NYSE
Website:	uscellular.com