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