BST:76E

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very undervalued average dividend payer.

Risks

  • Cogeco is covered by less than 3 analysts.

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


Market Performance


7 Day Return

1.9%

BST:76E

-0.2%

DE Media

1.5%

DE Market


1 Year Return

42.9%

BST:76E

-19.8%

DE Media

-5.8%

DE Market

76E outperformed the Media industry which returned -19.7% over the past year.

76E outperformed the Market in Germany which returned -7.4% over the past year.


Share holder returns

76EIndustryMarket
7 Day1.9%-0.2%1.5%
30 Day-1.2%9.4%1.3%
90 Day9.0%11.5%2.2%
1 Year46.6%42.9%-15.3%-19.8%-2.8%-5.8%
3 Yearn/a-15.4%-27.9%28.8%17.6%
5 Yearn/a1.3%-20.4%26.2%8.7%

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

No news available

Valuation

Is Cogeco undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cogeco's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cogeco's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Cogeco is good value based on earnings compared to the DE Media industry average.

Cogeco is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Cogeco is good value based on expected growth next year.


Price Based on Value of Assets

Cogeco is good value based on assets compared to the DE Media industry average.


Next Steps

Future Growth

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

24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cogeco's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Cogeco's earnings are expected to grow significantly at over 20% yearly.

Cogeco's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.

Cogeco's earnings growth is expected to exceed the Germany market average.

Cogeco's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Cogeco will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Cogeco performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cogeco's year on year earnings growth rate has been positive over the past 5 years.

Cogeco's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Cogeco's 1-year earnings growth is negative, it can't be compared to the DE Media industry average.


Return on Equity

Cogeco has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cogeco used its assets less efficiently than the DE Media industry average last year based on Return on Assets.


Return on Capital Employed

Cogeco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cogeco's financial position?


Financial Position Analysis

Cogeco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cogeco's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Cogeco's level of debt (155.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (209.4% vs 155.1% today).

Debt is well covered by operating cash flow (21.1%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.06%

Current Dividend Yield


Dividend Yield and Payments Analysis

Cogeco's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.45%).

Cogeco's dividend is below the markets top 25% of dividend payers in Germany (3.87%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Cogeco's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Philippe Jetté (53yo)

0.8yrs

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

Philippe's remuneration is lower than average for companies of similar size in Germany.

Philippe's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

54.5yo

Average Age

The tenure for the Cogeco management team is about average.


Board Age and Tenure

3.4yrs

Average Tenure

63yo

Average Age

The tenure for the Cogeco board of directors is about average.


Insider Trading

Cogeco individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

Sell€95913 May 19
Nathalie Dorval
EntityIndividual
Shares20
Max Price€47.95
Sell€20,12023 Apr 19
Philippe Bonin
EntityIndividual
Role
Vice President of Corporate Development
Shares373
Max Price€53.94
Sell€18,10101 Mar 19
Elizabeth Alves
EntityIndividual
Shares376
Max Price€48.15
Sell€19,24701 Mar 19
Nathalie Dorval
EntityIndividual
Shares400
Max Price€48.12
Buy€31,84424 Jul 18
Mary-Ann Bell
EntityIndividual
Role
Member of the Board of Directors
Shares800
Max Price€39.81

Ownership Breakdown


Management Team

  • Patrice Ouimet

    Senior VP & CFO

    • Tenure: 4.6yrs
    • Compensation: CA$2.17m
  • Louis Audet (67yo)

    Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: CA$5.17m
  • Rich Shea (56yo)

    CEO & President of Atlantic Broadband Inc

    • Tenure: 4.4yrs
    • Compensation: CA$3.02m
  • Philippe Jetté (53yo)

    President

    • Tenure: 0.8yrs
    • Compensation: CA$832.85k
  • Christian Jolivet

    Senior VP of Corporate Affairs

    • Tenure: 5.6yrs
    • Compensation: CA$1.14m
  • Diane Nyisztor (51yo)

    Senior Vice President of Corporate Human Resources

    • Tenure: 3.7yrs
  • Luc Noiseux

    Senior VP and Chief Technology & Strategy Officer

    • Tenure: 2.8yrs
  • Ken Smithard

    President of Cogeco Connexion

    • Tenure: 3.4yrs
    • Compensation: CA$1.80m
  • Marie-Hélène Labrie

    Senior Vice President of Public Affairs & Communications

    • Tenure: 0.6yrs
  • Philippe Bonin

    Vice President of Corporate Development

    • Tenure: 3.3yrs

Board Members

  • David McAusland (64yo)

    Independent Director

    • Tenure: 20.4yrs
    • Compensation: CA$78.00k
  • Louis Audet (67yo)

    Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: CA$5.17m
  • James Cherry (64yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$133.50k
  • Mary-Ann Bell (58yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$129.50k
  • Normand Legault (63yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: CA$120.50k
  • Philippe Jetté (53yo)

    President

    • Tenure: 0.4yrs
    • Compensation: CA$832.85k
  • Samih Elhage (57yo)

    Director

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: Cogeco Inc.
  • Ticker: 76E
  • Exchange: BST
  • Founded: 1957
  • Industry: cable and satellite
  • Sector: media
  • Market Cap: CA$1.341b
  • Listing Market Cap: CA$896.426m
  • Shares outstanding: 16.07m
  • Website: Click here

Number of Employees


Location

  • Cogeco Inc.
  • 5, Place Ville Marie
  • Suite 1700
  • Montreal
  • Quebec
  • H3B 0B3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CGOTSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADDec 1986
76EBST (Boerse-Stuttgart)YesSubordinate Voting SharesDEEURDec 1986

Biography

Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in the United States, Canada, Europe, and internationally. The company operates in two segments, Communications and O ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/24 22:56
End of Day Share Price2019/06/24 00:00
Earnings2019/02/28
Annual Earnings2018/08/31


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.