DB:COG

Stock Analysis Report

Cogeco Communications

Executive Summary

Cogeco Communications Inc. operates as a communications corporation in North America.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: COG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

COG

4.5%

DE Media

4.3%

DE Market


1 Year Return

9.2%

COG

-17.3%

DE Media

-14.2%

DE Market

Return vs Industry: COG exceeded the German Media industry which returned -19.6% over the past year.

Return vs Market: COG exceeded the German Market which returned -16.6% over the past year.


Shareholder returns

COGIndustryMarket
7 Day4.1%4.5%4.3%
30 Day-11.3%-13.6%-9.0%
90 Day-19.2%-23.0%-21.6%
1 Year11.6%9.2%-13.2%-17.3%-11.7%-14.2%
3 Year31.6%22.3%-38.4%-46.5%-12.3%-19.6%
5 Year35.3%19.8%-42.5%-54.5%-14.0%-25.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Cogeco Communications 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: COG (€63) is trading below our estimate of fair value (€131.13)

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


Price To Earnings Ratio

PE vs Industry: COG is good value based on its PE Ratio (13.5x) compared to the Media industry average (23.4x).

PE vs Market: COG is good value based on its PE Ratio (13.5x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: COG is good value based on its PB Ratio (2.1x) compared to the DE Media industry average (2.3x).


Next Steps

Future Growth

How is Cogeco Communications forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COG's forecast earnings growth (8.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: COG's earnings (8.7% per year) are forecast to grow slower than the German market (14% per year).

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

Revenue vs Market: COG's revenue (2.1% per year) is forecast to grow slower than the German market (3.9% per year).

High Growth Revenue: COG's revenue (2.1% 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 COG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cogeco Communications performed over the past 5 years?

17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COG has high quality earnings.

Growing Profit Margin: COG's current net profit margins (15%) are lower than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: COG's earnings have grown by 17.8% per year over the past 5 years.

Accelerating Growth: COG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: COG had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the Media industry average (17%).


Return on Equity

High ROE: COG's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is Cogeco Communications's financial position?


Financial Position Analysis

Short Term Liabilities: COG's short term assets (CA$674.2M) exceed its short term liabilities (CA$525.1M).

Long Term Liabilities: COG's short term assets (CA$674.2M) do not cover its long term liabilities (CA$3.8B).


Debt to Equity History and Analysis

Debt Level: COG's debt to equity ratio (130.3%) is considered high.

Reducing Debt: COG's debt to equity ratio has reduced from 184% to 130.3% over the past 5 years.

Debt Coverage: COG's debt is well covered by operating cash flow (28.3%).

Interest Coverage: COG's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COG's dividend (2.42%) is higher than the bottom 25% of dividend payers in the German market (1.67%).

High Dividend: COG's dividend (2.42%) is low compared to the top 25% of dividend payers in the German market (4.71%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.3%), COG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COG's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Philippe Jetté (54yo)

1.58s

Tenure

CA$3,372,615

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 ($USD2.41M) is about average for companies of similar size in the German market ($USD3.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Louis Audet
Executive Chairman of the Board1.58yrsCA$2.24m0.19% CA$5.9m
Philippe Jetté
President1.58yrsCA$3.37m0.014% CA$429.0k
Patrice Ouimet
CFO & Senior VP5.42yrsCA$1.44m0.0013% CA$39.0k
Michel Blais
Vice President of Engineering & Operationsno datano datano data
Luc Noiseux
Senior VP and Chief Technology & Strategy Officer3.67yrsno data0.00012% CA$3.7k
Christian Jolivet
Senior VP of Corporate Affairs18.25yrsCA$1.14m0.0049% CA$150.2k
Marie-Hélène Labrie
Senior VP and Chief Public Affairs & Communications Officerno datano data0.00016% CA$5.0k
Liette Vigneault
Vice President of Human Resources & Communicationsno datano datano data
Philippe Bonin
Vice President of Corporate Development4.08yrsno data0.00027% CA$8.4k
Diane Nyisztor
Senior VP & Chief Human Resources Officer4.5yrsno data0.0026% CA$81.2k

4.1yrs

Average Tenure

54yo

Average Age

Experienced Management: COG's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Louis Audet
Executive Chairman of the Board1.58yrsCA$2.24m0.19% CA$5.9m
Philippe Jetté
President1.58yrsCA$3.37m0.014% CA$429.0k
David McAusland
Independent Director21.25yrsCA$75.00k0.0082% CA$254.3k
Joanne Ferstman
Independent Director4.25yrsCA$136.00kno data
Bernard Lord
Director0.25yrno datano data
James Cherry
Lead Independent Director1.25yrsCA$58.13kno data
Pippa Dunn
Independent Director1.25yrsCA$95.00kno data
Elizabeth Gibson
Independent Director5.25yrsCA$120.00k0.0033% CA$101.3k
Colleen Abdoulah
Independent Director1.25yrsCA$123.33kno data
Carole Salomon
Independent Director11.25yrsCA$130.25k0.0082% CA$253.1k

1.4yrs

Average Tenure

62yo

Average Age

Experienced Board: COG's board of directors are not considered experienced ( 1.4 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 Communications Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cogeco Communications Inc.
  • Ticker: COG
  • Exchange: DB
  • Founded: 1972
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: CA$4.720b
  • Listing Market Cap: CA$3.097b
  • Shares outstanding: 48.96m
  • Website: https://corpo.cogeco.com/cca/en

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCATSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADJul 1993
COGDB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURJul 1993
CGEA.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDJul 1993

Biography

Cogeco Communications Inc. operates as a communications corporation in North America. The company operates in two segments, Canadian Broadband Services and American Broadband Services. It offers digital video and programming services, such as digital tier packages, discretionary services, pay-per-view channels, video-on-demand services, high definition and 4K television services, and advanced video services; Internet services; and telephony services to residential customers comprising direct international calling, international long distance plans, voicemail, and other custom calling features. The company also provides a range of Internet packages; video services; telephony services; managed cloud services; and other advanced network connectivity services, such as session initiation protocol, primary rate interface trunk solutions, hosted private branch exchange solutions, and business and software efficiency services for business customers. The company was formerly known as Cogeco Cable Inc. and changed its name to Cogeco Communications Inc. in January 2016. The company was founded in 1972 and is headquartered in Montreal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 22:04
End of Day Share Price2020/04/07 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.