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Market Cap

CA$1.6b

Last Updated

2021/05/16 23:23 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Cogeco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CGO is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: CGO's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

CGO

0.2%

CA Media

-0.7%

CA Market


1 Year Return

15.8%

CGO

39.2%

CA Media

39.3%

CA Market

Return vs Industry: CGO underperformed the Canadian Media industry which returned 39.2% over the past year.

Return vs Market: CGO underperformed the Canadian Market which returned 39.3% over the past year.


Shareholder returns

CGOIndustryMarket
7 Day1.2%0.2%-0.7%
30 Day-1.1%-0.8%0.7%
90 Day1.2%24.7%6.1%
1 Year18.6%15.8%44.3%39.2%43.8%39.3%
3 Year61.0%50.2%52.8%37.4%28.5%16.3%
5 Year104.5%82.7%72.7%43.2%58.4%34.6%

Long-Term Price Volatility Vs. Market

How volatile is Cogeco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CGO (CA$97.97) is trading below our estimate of fair value (CA$431.49)

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 PE Ratio (11.4x) compared to the Canadian Media industry average (11.6x).

PE vs Market: CGO is good value based on its PE Ratio (11.4x) compared to the Canadian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: CGO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CGO is overvalued based on its PB Ratio (1.9x) compared to the CA Media industry average (1.4x).


Future Growth

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

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGO's forecast earnings growth (14.4% per year) is above the savings rate (1.5%).

Earnings vs Market: CGO's earnings (14.4% per year) are forecast to grow faster than the Canadian market (13.6% per year).

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

Revenue vs Market: CGO's revenue (3.4% per year) is forecast to grow slower than the Canadian market (6.4% per year).

High Growth Revenue: CGO's revenue (3.4% 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?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGO has high quality earnings.

Growing Profit Margin: CGO's current net profit margins (5.3%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: CGO's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: CGO's earnings growth over the past year (85.8%) exceeds its 5-year average (22% per year).

Earnings vs Industry: CGO earnings growth over the past year (85.8%) exceeded the Media industry 15.4%.


Return on Equity

High ROE: CGO's Return on Equity (15%) is considered low.


Financial Health

How is Cogeco's financial position?


Financial Position Analysis

Short Term Liabilities: CGO's short term assets (CA$442.6M) do not cover its short term liabilities (CA$627.2M).

Long Term Liabilities: CGO's short term assets (CA$442.6M) do not cover its long term liabilities (CA$3.7B).


Debt to Equity History and Analysis

Debt Level: CGO's debt to equity ratio (115.6%) is considered high.

Reducing Debt: CGO's debt to equity ratio has reduced from 169.2% to 115.6% over the past 5 years.

Debt Coverage: CGO's debt is well covered by operating cash flow (31.6%).

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?

2.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CGO's dividend (2.23%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).

High Dividend: CGO's dividend (2.23%) is low compared to the top 25% of dividend payers in the Canadian market (4.53%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.8%), CGO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Philippe Jette (55 yo)

2.67yrs

Tenure

CA$4,645,204

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 ($USD3.84M) is above average for companies of similar size in the Canadian market ($USD2.15M).

Compensation vs Earnings: Philippe's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CGO's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: CGO's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cogeco Inc.
  • Ticker: CGO
  • Exchange: TSX
  • Founded: 1957
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: CA$1.558b
  • Shares outstanding: 15.90m
  • 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


Biography

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 s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 23:23
End of Day Share Price2021/05/14 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


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.