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CGO

Cogeco TSX:CGO Stock Report

Last Price

CA$74.69

Market Cap

CA$1.2b

7D

0.5%

1Y

-19.8%

Updated

24 May, 2022

Data

Company Financials +
CGO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends5/6

CGO Stock Overview

Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in Canada and the United States.

Cogeco Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cogeco
Historical stock prices
Current Share PriceCA$74.69
52 Week HighCA$98.00
52 Week LowCA$67.62
Beta0.24
1 Month Change-10.14%
3 Month Change-5.61%
1 Year Change-19.80%
3 Year Change-13.02%
5 Year Change11.31%
Change since IPO1,393.80%

Recent News & Updates

Shareholder Returns

CGOCA MediaCA Market
7D0.5%0.1%-0.7%
1Y-19.8%-7.8%5.2%

Return vs Industry: CGO underperformed the Canadian Media industry which returned -7.4% over the past year.

Return vs Market: CGO underperformed the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is CGO's price volatile compared to industry and market?
CGO volatility
CGO Average Weekly Movement3.3%
Media Industry Average Movement5.3%
Market Average Movement9.8%
10% most volatile stocks in CA Market16.9%
10% least volatile stocks in CA Market4.3%

Stable Share Price: CGO is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CGO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19574,400Philippe Jettehttps://corpo.cogeco.com/cgo/en

Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in Canada and the United States. The company operates in two segments, Communications and Other. The Communications segment provides a range of Internet, video, and telephony services through its two-way broadband fiber networks primarily to residential customers, as well as to small and medium sized businesses under the Cogeco Connexion name in Quebec and Ontario; and Atlantic Broadband brand in the United States.

Cogeco Fundamentals Summary

How do Cogeco's earnings and revenue compare to its market cap?
CGO fundamental statistics
Market CapCA$1.18b
Earnings (TTM)CA$142.81m
Revenue (TTM)CA$2.80b

8.2x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGO income statement (TTM)
RevenueCA$2.80b
Cost of RevenueCA$1.50b
Gross ProfitCA$1.30b
Other ExpensesCA$1.16b
EarningsCA$142.81m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.07
Gross Margin46.45%
Net Profit Margin5.10%
Debt/Equity Ratio151.8%

How did CGO perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

26%

Payout Ratio

Valuation

Is Cogeco undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CGO (CA$74.69) is trading below our estimate of fair value (CA$275.06)

Significantly Below Fair Value: CGO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CGO is good value based on its Price-To-Earnings Ratio (8.2x) compared to the Canadian Media industry average (11.2x).

PE vs Market: CGO is good value based on its Price-To-Earnings Ratio (8.2x) compared to the Canadian market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: CGO is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: CGO's Price-To-Book Ratio (1.4x) is in line with the CA Media industry average.


Future Growth

How is Cogeco forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGO's forecast earnings growth (5.3% per year) is above the savings rate (1.6%).

Earnings vs Market: CGO's earnings (5.3% per year) are forecast to grow slower than the Canadian market (7.6% per year).

High Growth Earnings: CGO's earnings are forecast to grow, but not significantly.

Revenue vs Market: CGO's revenue (3.9% per year) is forecast to grow slower than the Canadian market (6.4% per year).

High Growth Revenue: CGO's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CGO's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Cogeco performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CGO has high quality earnings.

Growing Profit Margin: CGO's current net profit margins (5.1%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: CGO has become profitable over the past 5 years, growing earnings by 9.2% per year.

Accelerating Growth: CGO's earnings growth over the past year (5%) is below its 5-year average (9.2% per year).

Earnings vs Industry: CGO earnings growth over the past year (5%) exceeded the Media industry 2.4%.


Return on Equity

High ROE: CGO's Return on Equity (14.6%) is considered low.


Financial Health

How is Cogeco's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CGO's short term assets (CA$530.8M) do not cover its short term liabilities (CA$626.1M).

Long Term Liabilities: CGO's short term assets (CA$530.8M) do not cover its long term liabilities (CA$5.4B).


Debt to Equity History and Analysis

Debt Level: CGO's net debt to equity ratio (145.9%) is considered high.

Reducing Debt: CGO's debt to equity ratio has reduced from 178.2% to 151.8% over the past 5 years.

Debt Coverage: CGO's debt is well covered by operating cash flow (24.3%).

Interest Coverage: CGO's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Dividend

What is Cogeco current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CGO's dividend (3.35%) is higher than the bottom 25% of dividend payers in the Canadian market (1.9%).

High Dividend: CGO's dividend (3.35%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).


Stability and Growth of Payments

Stable Dividend: CGO's dividends per share have been stable in the past 10 years.

Growing Dividend: CGO's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.1%), CGO's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (15.9%), CGO's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Philippe Jette (56 yo)

3.67yrs

Tenure

CA$4,447,251

Compensation

Mr. Philippe Jette, Eng, has been President and Chief Executive Officer of Cogeco Inc. and Cogeco Communications Inc., since September 01, 2018. He serves as Director of Cogeco Inc. since January 11, 2019....


CEO Compensation Analysis

Compensation vs Market: Philippe's total compensation ($USD3.46M) is above average for companies of similar size in the Canadian market ($USD1.54M).

Compensation vs Earnings: Philippe's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CGO's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: CGO's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CGO insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cogeco Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cogeco Inc.
  • Ticker: CGO
  • Exchange: TSX
  • Founded: 1957
  • Industry: Cable and Satellite
  • Sector: Media
  • Implied Market Cap: CA$1.176b
  • Shares outstanding: 15.75m
  • Website: https://corpo.cogeco.com/cgo/en

Number of Employees


Location

  • Cogeco Inc.
  • 1 Place Ville Marie
  • Suite 3301
  • Montreal
  • Quebec
  • H3B 3N2
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2022/02/28
Annual Earnings2021/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.