Executive Summary
Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in Canada and the United States.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and fair value.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.3%
CGO
-0.2%
CA Media
-0.08%
CA Market
1 Year Return
68.4%
CGO
19.9%
CA Media
10.8%
CA Market
Return vs Industry: CGO exceeded the Canadian Media industry which returned 19.9% over the past year.
Return vs Market: CGO exceeded the Canadian Market which returned 10.8% over the past year.
Shareholder returns
| CGO | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | -0.2% | -0.08% |
| 30 Day | 3.6% | 2.4% | 0.01% |
| 90 Day | 8.6% | 5.1% | 1.2% |
| 1 Year | 72.1%68.4% | 24.3%19.9% | 14.4%10.8% |
| 3 Year | 98.7%86.2% | 32.2%16.5% | 15.0%4.6% |
| 5 Year | 91.5%72.0% | 23.9%-0.9% | 40.1%19.4% |
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
1 week ago | Simply Wall St
Is Cogeco (TSE:CGO) Using Too Much Debt?3 weeks ago | Simply Wall St
Elizabeth Alves Just Sold A Bunch Of Shares In Cogeco Inc. (TSE:CGO)1 month ago | Simply Wall St
Cogeco Inc. (TSE:CGO) Pays A 0.5% In Just 4 DaysValuation
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$104) is trading below our estimate of fair value (CA$405.78)
Significantly Below Fair Value: CGO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CGO is poor value based on its PE Ratio (24.8x) compared to the Media industry average (14.6x).
PE vs Market: CGO is poor value based on its PE Ratio (24.8x) compared to the Canadian market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: CGO is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: CGO is overvalued based on its PB Ratio (2.2x) compared to the CA Media industry average (0.9x).
Next Steps
Future Growth
How is Cogeco forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
35.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CGO's forecast earnings growth (35.1% per year) is above the savings rate (1.4%).
Earnings vs Market: CGO's earnings (35.1% per year) are forecast to grow faster than the Canadian market (10.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CGO's revenue (2.2% per year) is forecast to grow slower than the Canadian market (4.9% per year).
High Growth Revenue: CGO's revenue (2.2% 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
Next Steps
Past Performance
How has Cogeco performed over the past 5 years?
11.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CGO has high quality earnings.
Growing Profit Margin: CGO's current net profit margins (2.8%) are lower than last year (6.7%).
Past Earnings Growth Analysis
Earnings Trend: CGO's earnings have grown by 11.4% per year over the past 5 years.
Accelerating Growth: CGO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CGO had negative earnings growth (-55.1%) over the past year, making it difficult to compare to the Media industry average (5.3%).
Return on Equity
High ROE: CGO's Return on Equity (14%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Cogeco's financial position?
Financial Position Analysis
Short Term Liabilities: CGO's short term assets (CA$700.8M) exceed its short term liabilities (CA$403.2M).
Long Term Liabilities: CGO's short term assets (CA$700.8M) do not cover its long term liabilities (CA$4.1B).
Debt to Equity History and Analysis
Debt Level: CGO's debt to equity ratio (133.7%) is considered high.
Reducing Debt: CGO's debt to equity ratio has reduced from 183.3% to 133.7% over the past 5 years.
Debt Coverage: CGO's debt is well covered by operating cash flow (26.6%).
Interest Coverage: CGO's interest payments on its debt are well covered by EBIT (3.6x coverage).
Balance Sheet
Inventory Level: CGO has a high level of physical assets or inventory.
Debt Coverage by Assets: CGO's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is Cogeco's current dividend yield, its reliability and sustainability?
1.83%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CGO's dividend (1.83%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.02%).
High Dividend: CGO's dividend (1.83%) is low compared to the top 25% of dividend payers in the Canadian market (5.6%).
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 reasonably low payout ratio (41%), 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
What is the CEO of Cogeco's salary, the management and board of directors tenure and is there insider trading?
4.0yrs
Average management tenure
CEO
Philippe Jetté (54yo)
1.3yrs
Tenure
CA$832,851
Compensation
Mr. Philippe Jetté, P.Eng, has been President and Chief Executive Officer of Cogeco Inc. and Cogeco Communications Inc., since September 01, 2018 respectively. He serves as Director of Cogeco Inc. since Ja ...
CEO Compensation Analysis
Compensation vs Market: Philippe's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD2.15M).
Compensation vs Earnings: Philippe's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.0yrs
Average Tenure
55.5yo
Average Age
Experienced Management: CGO's management team is considered experienced (4 years average tenure).
Board Age and Tenure
1.1yrs
Average Tenure
64yo
Average Age
Experienced Board: CGO's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: CGO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 2,942 |
| Max Price | CA$106.50 |
| Entity | Individual |
| Shares | 450 |
| Max Price | CA$105.17 |
| Entity | Individual |
| Shares | 500 |
| Max Price | CA$105.49 |
| Entity | Individual |
| Shares | 301 |
| Max Price | CA$102.72 |
| Entity | Individual |
| Role | Chief Technology Officer Senior VP & Chief Technology and Strategy Officer |
| Shares | 400 |
| Max Price | CA$105.59 |
| Entity | Individual |
| Shares | 652 |
| Max Price | CA$104.31 |
| Entity | Individual |
| Role | Chief Technology Officer Senior VP & Chief Technology and Strategy Officer |
| Shares | 640 |
| Max Price | CA$94.89 |
| Entity | Individual |
| Role | Treasurer VP & Treasurer |
| Shares | 314 |
| Max Price | CA$94.45 |
| Entity | Individual |
| Role | Chief Legal Officer Senior VP of Corporate Affairs |
| Shares | 765 |
| Max Price | CA$94.35 |
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 4,000 |
| Max Price | CA$91.24 |
| Entity | Individual |
| Shares | 444 |
| Max Price | CA$90.64 |
| Entity | Individual |
| Shares | 20 |
| Max Price | CA$71.90 |
| Entity | Individual |
| Shares | 373 |
| Max Price | CA$81.10 |
| Entity | Individual |
| Shares | 400 |
| Max Price | CA$72.15 |
| Entity | Individual |
| Shares | 376 |
| Max Price | CA$72.20 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Louis Audet (68yo)
Executive Chairman
- Tenure: 1.3yrs
- Compensation: CA$5.17m
Christian Jolivet
Senior VP of Corporate Affairs
- Tenure: 6.1yrs
- Compensation: CA$1.14m
Andrée Pinard
VP & Treasurer
- Tenure: 8yrs
Rich Shea (57yo)
CEO & President of Atlantic Broadband Inc
- Tenure: 4.9yrs
- Compensation: CA$3.02m
Diane Nyisztor (52yo)
Senior VP & Chief Human Resources Officer
- Tenure: 4.2yrs
Philippe Jetté (54yo)
President
- Tenure: 1.3yrs
- Compensation: CA$832.85k
Marie-Hélène Labrie
Senior VP & Chief Public Affairs and Communications Officer
- Tenure: 1.1yrs
Patrice Ouimet
Senior VP & CFO
- Tenure: 5.1yrs
- Compensation: CA$2.17m
Ken Smithard
President of Cogeco Connexion
- Tenure: 3.9yrs
- Compensation: CA$1.80m
Luc Noiseux
Senior VP & Chief Technology and Strategy Officer
- Tenure: 3.3yrs
Board Members
David McAusland (65yo)
Independent Director
- Tenure: 21.9yrs
- Compensation: CA$78.00k
Louis Audet (68yo)
Executive Chairman
- Tenure: 1.3yrs
- Compensation: CA$5.17m
James Cherry (65yo)
Lead Director
- Tenure: 0.9yrs
- Compensation: CA$133.50k
Mary-Ann Bell (59yo)
Independent Director
- Tenure: 3.9yrs
- Compensation: CA$129.50k
Normand Legault (64yo)
Independent Director
- Tenure: 7.9yrs
- Compensation: CA$120.50k
Philippe Jetté (54yo)
President
- Tenure: 1.3yrs
- Compensation: CA$832.85k
Samih Elhage (58yo)
Independent Director
- Tenure: 0.9yrs
Arun Bajaj
Director
- Tenure: 0.3yrs
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$1.665b
- Shares outstanding: 15.99m
- Website: https://corpo.cogeco.com
Number of Employees
Location
- Cogeco Inc.
- 5, Place Ville Marie
- Suite 1700
- Montreal
- Quebec
- H3B 0B3
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CGO | TSX (The Toronto Stock Exchange) | Yes | Subordinate Voting Shares | CA | CAD | Dec 1986 |
| CGEC.F | OTCPK (Pink Sheets LLC) | Yes | Subordinate Voting Shares | US | USD | Dec 1986 |
| 76E | BST (Boerse-Stuttgart) | Yes | Subordinate Voting Shares | DE | EUR | Dec 1986 |
Biography
Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in Canada and the United States. It operates in two segments, Communications and Other. The company provides Internet ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/09 23:34 |
| End of Day Share Price | 2019/12/09 00:00 |
| Earnings | 2019/08/31 |
| Annual Earnings | 2019/08/31 |
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.