Executive Summary
Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in Canada and the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with proven 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 +/- 6% a week.
Volatility Over Time: CGO's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
3.0%
CGO
0.7%
CA Media
1.7%
CA Market
1 Year Return
-22.7%
CGO
-16.7%
CA Media
0.2%
CA Market
Return vs Industry: CGO underperformed the Canadian Media industry which returned -13.3% over the past year.
Return vs Market: CGO underperformed the Canadian Market which returned -1.5% over the past year.
Shareholder returns
| CGO | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.0% | 0.7% | 1.7% |
| 30 Day | -3.3% | 0.4% | 7.0% |
| 90 Day | -0.5% | -3.8% | 5.1% |
| 1 Year | -20.8%-22.7% | -13.2%-16.7% | 3.9%0.2% |
| 3 Year | -10.3%-16.3% | 2.0%-8.7% | 13.1%2.1% |
| 5 Year | 63.3%45.9% | 25.2%3.4% | 46.5%24.1% |
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
3 weeks ago | Simply Wall St
Is It Smart To Buy Cogeco Inc. (TSE:CGO) Before It Goes Ex-Dividend?1 month ago | Simply Wall St
How Much Of Cogeco Inc. (TSE:CGO) Do Institutions Own?1 month ago | Simply Wall St
Is Cogeco Inc. (TSE:CGO) A Good Fit For Your Dividend Portfolio?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$80.16) is trading below our estimate of fair value (CA$348.99)
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 (10x) compared to the CA Media industry average (12.4x).
PE vs Market: CGO is good value based on its PE Ratio (10x) compared to the Canadian market (15.1x).
Price to Earnings Growth Ratio
PEG Ratio: CGO is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: CGO is overvalued based on its PB Ratio (1.7x) compared to the CA Media industry average (1.1x).
Next Steps
Future Growth
How is Cogeco forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
11.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CGO's forecast earnings growth (11.5% per year) is above the savings rate (1.7%).
Earnings vs Market: CGO's earnings (11.5% per year) are forecast to grow slower than the Canadian market (26.4% per year).
High Growth Earnings: CGO's earnings are forecast to grow, but not significantly.
Revenue vs Market: CGO's revenue (2.8% per year) is forecast to grow slower than the Canadian market (6.1% per year).
High Growth Revenue: CGO's revenue (2.8% 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?
16.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CGO has high quality earnings.
Growing Profit Margin: CGO's current net profit margins (5.2%) are higher than last year (2.8%).
Past Earnings Growth Analysis
Earnings Trend: CGO's earnings have grown by 16.7% per year over the past 5 years.
Accelerating Growth: CGO's earnings growth over the past year (88.9%) exceeds its 5-year average (16.7% per year).
Earnings vs Industry: CGO earnings growth over the past year (88.9%) underperformed the Media industry 88.9%.
Return on Equity
High ROE: CGO's Return on Equity (14.8%) is considered low.
Next Steps
Financial Health
How is Cogeco's financial position?
Financial Position Analysis
Short Term Liabilities: CGO's short term assets (CA$538.6M) exceed its short term liabilities (CA$392.7M).
Long Term Liabilities: CGO's short term assets (CA$538.6M) do not cover its long term liabilities (CA$3.9B).
Debt to Equity History and Analysis
Debt Level: CGO's debt to equity ratio (119.6%) is considered high.
Reducing Debt: CGO's debt to equity ratio has reduced from 187.4% to 119.6% over the past 5 years.
Debt Coverage: CGO's debt is well covered by operating cash flow (29.1%).
Interest Coverage: CGO's interest payments on its debt are well covered by EBIT (4x coverage).
Balance Sheet
Next Steps
Dividend
What is Cogeco current dividend yield, its reliability and sustainability?
2.72%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CGO's dividend (2.72%) is higher than the bottom 25% of dividend payers in the Canadian market (1.66%).
High Dividend: CGO's dividend (2.72%) is low compared to the top 25% of dividend payers in the Canadian market (5.35%).
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 (23.6%), 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?
2.2yrs
Average management tenure
CEO
Philippe Jette (55 yo)
2.17yrs
Tenure
CA$3,371,615
Compensation
Mr. Philippe Jette, Eng, has been President and Chief Executive Officer of Cogeco Inc. and Cogeco Communications Inc., since September 01, 2018 respectively. He serves as Director of Cogeco Inc. since Janu...
CEO Compensation Analysis
Compensation vs Market: Philippe's total compensation ($USD2.59M) is above average for companies of similar size in the Canadian market ($USD1.36M).
Compensation vs Earnings: Philippe's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 2.17yrs | CA$2.24m | 0.89% CA$ 11.4m | |
| President | 2.17yrs | CA$3.37m | 0.0089% CA$ 114.5k | |
| Senior VP & CFO | 6yrs | CA$1.44m | 0.021% CA$ 271.1k | |
| President of Cogeco Connexion | 4.83yrs | CA$1.38m | no data | |
| Senior VP | no data | CA$1.25m | no data | |
| Senior VP of Corporate Affairs | 7yrs | CA$1.14m | 0.030% CA$ 385.7k | |
| Senior VP and Chief Public Affairs | 2yrs | no data | 0.00054% CA$ 6.9k | |
| Vice President of Corporate Development | 0.83yr | no data | no data | |
| Senior VP & Chief Human Resources Officer | 5.08yrs | no data | 0.018% CA$ 228.4k | |
| VP & Treasurer | 8.92yrs | no data | 0.011% CA$ 145.5k | |
| VP of Finance & Corporate Controller | 1yr | no data | 0.0092% CA$ 117.7k | |
| President of Cogeco Media | 2.17yrs | no data | no data |
2.2yrs
Average Tenure
54yo
Average Age
Experienced Management: CGO's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 2.17yrs | CA$2.24m | 0.89% CA$ 11.4m | |
| President | 2.17yrs | CA$3.37m | 0.0089% CA$ 114.5k | |
| Independent Director | 22.83yrs | CA$75.00k | 0.026% CA$ 336.4k | |
| Independent Director | 0.83yr | no data | no data | |
| Lead Independent Director | 1.83yrs | CA$103.13k | 0.0095% CA$ 121.0k | |
| Independent Director | 4.83yrs | CA$129.25k | 0.014% CA$ 185.5k | |
| Independent Director | 8.83yrs | CA$127.50k | no data | |
| Independent Director | 1.83yrs | CA$94.00k | no data | |
| Independent Director | 1.25yrs | no data | no data |
1.8yrs
Average Tenure
65yo
Average Age
Experienced Board: CGO's board of directors are not considered experienced ( 1.8 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: Insufficient data to determine if insiders have bought more shares than they have sold 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$1.280b
- Shares outstanding: 15.87m
- 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
| 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 |
| 76E | DB (Deutsche Boerse AG) | 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. The company operates in two segments, Communications and Other. The Communications s...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/24 23:51 |
| End of Day Share Price | 2020/11/24 00:00 |
| Earnings | 2020/08/31 |
| Annual Earnings | 2020/08/31 |
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.