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Cogent Communications Holdings

Nasdaq:CCOI
Snowflake Description

Proven track record with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CCOI
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Telecom
Company description

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, Asia, Australia, and Brazil. The last earnings update was 52 days ago. More info.


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CCOI Share Price and Events
7 Day Returns
0.7%
NasdaqGS:CCOI
-0.2%
US Telecom
2.2%
US Market
1 Year Returns
9.5%
NasdaqGS:CCOI
6.5%
US Telecom
3.8%
US Market
CCOI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cogent Communications Holdings (CCOI) 0.7% 3.6% 13.7% 9.5% 56.3% 77.8%
US Telecom -0.2% -0.2% 0.8% 6.5% -11.6% -3.9%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • CCOI outperformed the Telecom industry which returned 6.5% over the past year.
  • CCOI outperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
CCOI
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cogent Communications Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cogent Communications Holdings.

NasdaqGS:CCOI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CCOI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.332 (1 + (1- 21%) (32.93%))
0.611
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:CCOI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cogent Communications Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CCOI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 86.17 Analyst x8 80.16
2020 116.28 Analyst x9 100.62
2021 125.97 Analyst x3 101.41
2022 113.61 Analyst x1 85.08
2023 124.18 Analyst x1 86.51
2024 126.02 Est @ 1.48% 81.66
2025 128.36 Est @ 1.86% 77.38
2026 131.08 Est @ 2.12% 73.51
2027 134.09 Est @ 2.3% 69.95
2028 137.35 Est @ 2.43% 66.65
Present value of next 10 years cash flows $822.92
NasdaqGS:CCOI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $137.35 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$2,959.35
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,959.35 ÷ (1 + 7.5%)10
$1,436.13
NasdaqGS:CCOI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $822.92 + $1,436.13
$2,259.05
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,259.05 / 45.24
$49.94
NasdaqGS:CCOI Discount to Share Price
Calculation Result
Value per share (USD) From above. $49.94
Current discount Discount to share price of $59.88
= -1 x ($59.88 - $49.94) / $49.94
-19.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Cogent Communications Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cogent Communications Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cogent Communications Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CCOI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.69
NasdaqGS:CCOI Share Price ** NasdaqGS (2019-06-21) in USD $59.88
United States of America Telecom Industry PE Ratio Median Figure of 17 Publicly-Listed Telecom Companies 14.92x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cogent Communications Holdings.

NasdaqGS:CCOI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CCOI Share Price ÷ EPS (both in USD)

= 59.88 ÷ 0.69

87.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cogent Communications Holdings is overvalued based on earnings compared to the US Telecom industry average.
  • Cogent Communications Holdings is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Cogent Communications Holdings's expected growth come at a high price?
Raw Data
NasdaqGS:CCOI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 87.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
19.7%per year
United States of America Telecom Industry PEG Ratio Median Figure of 8 Publicly-Listed Telecom Companies 1.96x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NasdaqGS:CCOI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 87.33x ÷ 19.7%

4.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cogent Communications Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cogent Communications Holdings's assets?
Raw Data
NasdaqGS:CCOI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $-3.63
NasdaqGS:CCOI Share Price * NasdaqGS (2019-06-21) in USD $59.88
United States of America Telecom Industry PB Ratio Median Figure of 29 Publicly-Listed Telecom Companies 1.66x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NasdaqGS:CCOI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CCOI Share Price ÷ Book Value per Share (both in USD)

= 59.88 ÷ -3.63

-16.49x

* Primary Listing of Cogent Communications Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cogent Communications Holdings has negative assets, we can't compare the value of its assets to the US Telecom industry average.
X
Value checks
We assess Cogent Communications Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Cogent Communications Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cogent Communications Holdings expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cogent Communications Holdings expected to grow at an attractive rate?
  • Cogent Communications Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Cogent Communications Holdings's earnings growth is expected to exceed the United States of America market average.
  • Cogent Communications Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CCOI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CCOI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 19.7%
NasdaqGS:CCOI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 5.5%
United States of America Telecom Industry Earnings Growth Rate Market Cap Weighted Average 7.8%
United States of America Telecom Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CCOI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CCOI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 674 184 85 2
2022-12-31 642 174 74 2
2021-12-31 625 177 72 4
2020-12-31 585 160 53 14
2019-12-31 549 141 42 16
NasdaqGS:CCOI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 513 132 31
2018-12-31 508 134 29
2018-09-30 501 125 15
2018-06-30 494 122 11
2018-03-31 485 118 9
2017-12-31 474 112 6
2017-09-30 465 114 16
2017-06-30 455 108 16
2017-03-31 446 104 16
2016-12-31 438 108 15
2016-09-30 426 96 14
2016-06-30 419 97 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cogent Communications Holdings's earnings are expected to grow by 19.7% yearly, however this is not considered high growth (20% yearly).
  • Cogent Communications Holdings's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CCOI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Cogent Communications Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CCOI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.81 2.12 1.50 2.00
2022-12-31 1.57 1.78 1.37 2.00
2021-12-31 1.53 2.14 1.18 5.00
2020-12-31 1.15 1.60 0.95 14.00
2019-12-31 0.89 1.12 0.78 14.00
NasdaqGS:CCOI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.69
2018-12-31 0.63
2018-09-30 0.34
2018-06-30 0.24
2018-03-31 0.19
2017-12-31 0.13
2017-09-30 0.36
2017-06-30 0.35
2017-03-31 0.35
2016-12-31 0.33
2016-09-30 0.30
2016-06-30 0.30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Cogent Communications Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Cogent Communications Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cogent Communications Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cogent Communications Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cogent Communications Holdings's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cogent Communications Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Cogent Communications Holdings's 1-year earnings growth exceeds its 5-year average (264.9% vs -15.8%)
  • Cogent Communications Holdings's earnings growth has exceeded the US Telecom industry average in the past year (264.9% vs 15.7%).
Earnings and Revenue History
Cogent Communications Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cogent Communications Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CCOI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 512.92 31.10 136.20
2018-12-31 507.69 28.67 133.86
2018-09-30 501.17 15.34 132.39
2018-06-30 494.30 10.76 131.89
2018-03-31 485.18 8.52 129.98
2017-12-31 474.28 5.88 127.92
2017-09-30 464.95 16.00 124.37
2017-06-30 455.43 15.80 121.51
2017-03-31 446.11 15.71 119.54
2016-12-31 437.80 14.93 117.61
2016-09-30 426.38 13.52 116.58
2016-06-30 418.64 13.22 113.85
2016-03-31 409.68 9.84 112.96
2015-12-31 400.63 4.90 113.10
2015-09-30 395.61 2.06 113.83
2015-06-30 388.28 -1.28 113.86
2015-03-31 384.11 -0.91 111.07
2014-12-31 379.80 0.80 107.68
2014-09-30 373.11 53.75 102.61
2014-06-30 365.18 56.05 96.97
2014-03-31 356.36 56.45 92.06
2013-12-31 347.98 56.69 87.24
2013-09-30 340.73 3.81 84.08
2013-06-30 332.63 1.60 81.83
2013-03-31 324.64 -1.80 80.01
2012-12-31 316.97 -4.25 79.89
2012-09-30 313.45 1.45 79.75
2012-06-30 311.17 1.82 79.26

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Cogent Communications Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Cogent Communications Holdings used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.
  • Cogent Communications Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cogent Communications Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cogent Communications Holdings has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cogent Communications Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cogent Communications Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cogent Communications Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cogent Communications Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cogent Communications Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Cogent Communications Holdings has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cogent Communications Holdings Company Filings, last reported 2 months ago.

NasdaqGS:CCOI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 -164.23 891.57 259.14
2018-12-31 -149.00 795.24 276.09
2018-09-30 -125.84 792.84 284.56
2018-06-30 -114.64 720.99 224.28
2018-03-31 -97.06 718.84 236.03
2017-12-31 -102.54 718.18 247.01
2017-09-30 -80.12 714.78 250.77
2017-06-30 -71.20 710.03 256.49
2017-03-31 -63.61 705.19 263.20
2016-12-31 -53.25 701.82 274.32
2016-09-30 -40.49 575.75 148.15
2016-06-30 -29.39 571.24 154.97
2016-03-31 -18.38 582.58 196.05
2015-12-31 -12.27 581.45 203.59
2015-09-30 1.10 580.88 207.29
2015-06-30 22.19 578.67 224.49
2015-03-31 54.25 581.97 260.05
2014-12-31 83.79 603.91 287.79
2014-09-30 108.66 607.01 311.78
2014-06-30 140.62 609.08 349.84
2014-03-31 163.00 498.05 263.75
2013-12-31 193.49 496.08 304.87
2013-09-30 155.04 490.33 304.78
2013-06-30 154.54 412.48 237.34
2013-03-31 155.86 408.93 234.96
2012-12-31 159.78 395.43 247.29
2012-09-30 160.98 387.30 232.06
2012-06-30 161.15 386.05 237.23
  • Cogent Communications Holdings has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Cogent Communications Holdings's debt level has increased considering it has negative shareholder equity.
  • Debt is not well covered by operating cash flow (16.6%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Cogent Communications Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cogent Communications Holdings has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.01%
Current annual income from Cogent Communications Holdings dividends. Estimated to be 4.73% next year.
If you bought $2,000 of Cogent Communications Holdings shares you are expected to receive $80 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cogent Communications Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Cogent Communications Holdings's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CCOI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Telecom Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 5.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CCOI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 4.16 2.00
2022-12-31 3.71 2.00
2021-12-31 3.15 5.00
2020-12-31 2.76 13.00
2019-12-31 2.45 13.00
NasdaqGS:CCOI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-02 2.400 4.131
2019-02-22 2.320 4.380
2019-02-21 2.320 4.647
2018-11-01 2.240 4.671
2018-08-02 2.160 4.076
2018-05-03 2.080 3.988
2018-02-22 2.000 4.470
2017-11-02 1.920 4.260
2017-08-03 1.840 3.905
2017-05-04 1.760 4.323
2017-02-24 1.680 3.944
2017-02-23 1.680 3.962
2016-11-03 1.600 3.946
2016-08-04 1.520 4.201
2016-05-05 1.480 3.656
2016-02-24 1.560 4.121
2015-11-05 1.520 4.548
2015-08-06 1.480 5.185
2015-05-08 1.440 4.457
2015-05-07 1.440 4.478
2014-11-07 1.510 4.245
2014-08-07 1.200 3.635
2014-05-08 0.910 2.586
2014-02-20 0.870 2.446
2013-11-08 0.600 1.516
2013-08-08 0.560 1.706
2013-05-08 0.520 1.820
2013-05-07 0.520 1.768
2013-02-21 0.480 1.802
2012-11-06 0.440 1.919
2012-05-03 0.400 2.044

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cogent Communications Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Cogent Communications Holdings only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Cogent Communications Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.4x coverage).
X
Income/ dividend checks
We assess Cogent Communications Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cogent Communications Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cogent Communications Holdings has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dave Schaeffer
COMPENSATION $7,690,848
AGE 62
CEO Bio

Mr. David Schaeffer, also known as Dave, Ph.D., founded Cogent Communications Holdings, Inc., in August 1999 and serves as its Chairman, Chief Executive Officer and President. Mr. Schaeffer is a Founder of Cogent Communications, Inc. and serves as its Chief Executive Officer. Mr. Schaeffer also serves as an Industry Advisor at Jerusalem Venture Partners (JVP). He is an Operating Partner at Catalyst Investors. He founded Pathnet Inc., and served as its Chief Executive Officer from 1995 to 1997 and Chairman from 1997 to 1999. He also founded and operated a total of seven successful businesses, including the second-largest delivery and ground transportation enterprise in the United States with annual revenues of approximately $25 million and a property and casualty underwriter with $17 million in assets and $12 million in annual revenues. He has been Independent Director at Cyber-Ark Software, Inc. since May 2014. He has been an Independent Director of CyberArk Software, Ltd. since May 2014. He has also developed 44 commercial real estate properties in the Washington D.C. metro area, retaining controlling interest in 23 of these projects. His diverse background and entrepreneurial successes have enabled him to build management teams that constructed and operate the only facilities-based, non-oversubscribed multinational network of its kind. He has been a Director of Cogent Communications Holdings, Inc., since 1999. He has successfully founded and operated six other businesses prior to Cogent. These businesses span a wide array of industries from communications to commercial real estate. His diverse background and entrepreneurial successes have enabled him to build management teams that constructed and operate the only facilities-based, non-oversubscribed international network of its kind. He holds a B.S. in Physics from the University of Maryland, where he was a Ph.D. candidate in Economics.

CEO Compensation
  • Dave's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dave's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Cogent Communications Holdings management team in years:

3.7
Average Tenure
62
Average Age
  • The tenure for the Cogent Communications Holdings management team is about average.
Management Team

Dave Schaeffer

TITLE
Founder
COMPENSATION
$8M
AGE
62

Tad Weed

TITLE
CFO & Treasurer
COMPENSATION
$1M
AGE
57
TENURE
15.1 yrs

James Bubeck

TITLE
Chief Revenue Officer & VP of Global Sales
COMPENSATION
$873K
AGE
52
TENURE
3.7 yrs

Robert Beury

TITLE
COMPENSATION
$850K
AGE
64
TENURE
0.1 yrs

Tim O'Neill

TITLE
Vice President of Field Engineering
COMPENSATION
$844K
AGE
62

Raymond Kummer

TITLE
CTO & VP of Optical Transport Engineering
COMPENSATION
$190K
AGE
69

John Chang

TITLE
Chief Legal Officer

Vincent Teissier

TITLE
Director of Business Development
AGE
50

Ried Zulager

TITLE
Secretary
Board of Directors Tenure

Average tenure and age of the Cogent Communications Holdings board of directors in years:

12.9
Average Tenure
62
Average Age
  • The average tenure for the Cogent Communications Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Steven Brooks

TITLE
Director
COMPENSATION
$350K
AGE
66
TENURE
15.7 yrs

Dave Schaeffer

TITLE
Founder
COMPENSATION
$8M
AGE
62

David Bath

TITLE
Director
COMPENSATION
$349K
AGE
55
TENURE
12.6 yrs

Lewis Ferguson

TITLE
Director
COMPENSATION
$99K
AGE
73
TENURE
0.7 yrs

Timothy Weingarten

TITLE
Director
COMPENSATION
$349K
AGE
42
TENURE
15.7 yrs

Richard Liebhaber

TITLE
Director
COMPENSATION
$351K
AGE
82
TENURE
13.3 yrs

Marc Montagner

TITLE
Director
COMPENSATION
$349K
AGE
56
TENURE
9.2 yrs
Who owns this company?
Recent Insider Trading
  • Cogent Communications Holdings insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Jun 19 Sell Thaddeus Weed Individual 13. Jun 19 13. Jun 19 -1,400 $60.84 $-85,176
10. Jun 19 Sell Raymond Kummer Individual 10. Jun 19 10. Jun 19 -2,400 $61.24 $-146,966
06. Jun 19 Sell Thaddeus Weed Individual 05. Jun 19 05. Jun 19 -5,000 $58.50 $-292,500
06. Jun 19 Sell Timothy O'Neill Individual 06. Jun 19 06. Jun 19 -4,000 $58.62 $-234,480
24. May 19 Sell Lewis Ferguson Individual 23. May 19 23. May 19 -515 $57.45 $-29,586
22. May 19 Sell Raymond Kummer Individual 22. May 19 22. May 19 -2,440 $58.40 $-142,496
09. May 19 Sell David Bath Individual 09. May 19 09. May 19 -10,000 $57.88 $-578,776
07. May 19 Sell Thaddeus Weed Individual 06. May 19 06. May 19 -1,500 $57.11 $-85,663
13. Mar 19 Sell Steven Brooks Individual 12. Mar 19 12. Mar 19 -9,900 $50.13 $-496,280
12. Mar 19 Sell Marc Montagner Individual 12. Mar 19 12. Mar 19 -2,000 $50.00 $-100,000
12. Mar 19 Sell Thaddeus Weed Individual 12. Mar 19 12. Mar 19 -5,000 $50.00 $-250,000
08. Mar 19 Sell Lewis Ferguson Individual 07. Mar 19 07. Mar 19 -580 $48.60 $-28,187
14. Dec 18 Sell Thaddeus Weed Individual 14. Dec 18 14. Dec 18 -3,000 $46.89 $-140,658
14. Dec 18 Sell Lewis Ferguson Individual 14. Dec 18 14. Dec 18 -800 $47.20 $-37,760
09. Nov 18 Sell James Wei Individual 08. Nov 18 08. Nov 18 -2,500 $51.01 $-127,523
14. Sep 18 Sell David Bath Individual 13. Sep 18 13. Sep 18 -3,589 $54.94 $-197,186
13. Sep 18 Sell David Bath Individual 11. Sep 18 12. Sep 18 -18,411 $55.03 $-1,011,312
13. Sep 18 Sell Robert Beury Individual 13. Sep 18 13. Sep 18 -4,000 $54.92 $-219,689
12. Sep 18 Sell Robert Beury Individual 12. Sep 18 12. Sep 18 -2,000 $54.96 $-109,910
05. Sep 18 Sell Thaddeus Weed Individual 05. Sep 18 05. Sep 18 -4,500 $53.55 $-240,975
X
Management checks
We assess Cogent Communications Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cogent Communications Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Cogent Communications Holdings, Inc. (NASDAQ:CCOI): Poised For Long Term Success?

See our latest analysis for Cogent Communications Holdings What can we expect from Cogent Communications Holdings in the longer term? … To understand the overall trajectory of CCOI's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … NasdaqGS:CCOI Past and Future Earnings, June 18th 2019 This results in an annual growth rate of 20% based on the most recent earnings level of US$29m to the final forecast of US$67m by 2022.

Simply Wall St -

How Does Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Fare As A Dividend Stock?

Click the interactive chart for our full dividend analysis NasdaqGS:CCOI Historical Dividend Yield, June 5th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to be form a view on if a company's dividend is sustainable, relative to its net profit after tax. Cogent Communications Holdings paid out 321% of its profit as dividends, over the trailing twelve month period. A payout ratio above 100% is definitely an item of concern, unless there are some other circumstances that would justify it. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. With a cash payout ratio of 116%, Cogent Communications Holdings's dividend payments are poorly covered by cash flow. As Cogent Communications Holdings's dividend was not well covered by either earnings or cash flow, we would be concerned that this dividend could be at risk over the long term. Is Cogent Communications Holdings's Balance Sheet Risky? As Cogent Communications Holdings's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Cogent Communications Holdings is carrying net debt of 3.71 times its EBITDA, which is getting towards the upper limit of our comfort range on a dividend stock that the investor hopes will endure a wide range of economic circumstances. … Looking at the data, we can see that Cogent Communications Holdings has been paying a dividend for the past seven years.

Simply Wall St -

A Look At The Intrinsic Value Of Cogent Communications Holdings, Inc. (NASDAQ:CCOI)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $83.45 $116.06 $125.97 $113.61 $124.18 $126.07 $128.44 $131.18 $134.22 $137.49 Growth Rate Estimate Source Analyst x6 Analyst x8 Analyst x3 Analyst x1 Analyst x1 Est @ 1.52% Est @ 1.88% Est @ 2.14% Est @ 2.31% Est @ 2.44% Present Value ($, Millions) Discounted @ 7.5% $77.63 $100.44 $101.41 $85.08 $86.51 $81.70 $77.43 $73.57 $70.02 $66.72 Present Value of 10-year Cash Flow (PVCF)= $820.49m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.5%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$137m × (1 + 2.7%) ÷ (7.5% – 2.7%) = US$3.0b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$3.0b ÷ ( 1 + 7.5%)10 = $1.44b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $2.26b.

Simply Wall St -

Read This Before Buying Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Cogent Communications Holdings, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Cogent Communications Holdings insiders didn't buy any shares over the last year

Simply Wall St -

Can You Imagine How Cogent Communications Holdings's (NASDAQ:CCOI) Shareholders Feel About The 62% Share Price Increase?

To wit, the Cogent Communications Holdings share price has climbed 62% in five years, easily topping the market return of 47% (ignoring dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Cogent Communications Holdings's earnings per share are down 12% per year, despite strong share price performance over five years.

Simply Wall St -

What Should You Know About Cogent Communications Holdings, Inc.'s (NASDAQ:CCOI) Earnings Trend?

Cogent Communications Holdings, Inc.'s (NASDAQ:CCOI) released its most recent earnings update in December 2018, whicha

Simply Wall St -

Why We Like Cogent Communications Holdings, Inc.’s (NASDAQ:CCOI) 13% Return On Capital Employed

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

A Look At The Intrinsic Value Of Cogent Communications Holdings, Inc. (NASDAQ:CCOI)

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Have Insiders Been Selling Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Cogent Communications Holdings, Inc. … Cogent Communications Holdings Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Cogent Communications Holdings shares, than buying

Simply Wall St -

Does Cogent Communications Holdings Inc (NASDAQ:CCOI) Have A Place In Your Dividend Stock Portfolio?

Historically, Cogent Communications Holdings Inc (NASDAQ:CCOI) has paid a dividend to shareholders. … Does Cogent Communications Holdings tick all the boxes of a great dividend stock? … See our latest analysis for Cogent Communications Holdings

Simply Wall St -

Company Info

Description

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, Asia, Australia, and Brazil. The company offers on-net Internet access and private network services to law firms, financial services firms, advertising and marketing firms, other professional services businesses, other Internet service providers, telephone companies, cable television companies, Web hosting companies, content delivery network companies, and commercial content and application service providers. It also provides on-net services in carrier-neutral data centers, Cogent controlled data centers, and single-tenant office buildings. In addition, the company offers off-net services to businesses that are connected to its network primarily by means of ‘last mile’ access service lines obtained from other carriers primarily in the form of metropolitan Ethernet circuits. Further, it provides Internet connectivity to customers that are not located in buildings directly connected to its network, as well as offers voice services. The company operates 52 data centers. Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.

Details
Name: Cogent Communications Holdings, Inc.
CCOI
Exchange: NasdaqGS
Founded: 1999
$2,707,805,170
45,235,636
Website: http://www.cogentco.com
Address: Cogent Communications Holdings, Inc.
2450 North Street NW,
Washington,
District Of Columbia, 20037,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CCOI Common Stock Nasdaq Global Select US USD 05. Feb 2002
DB OGM1 Common Stock Deutsche Boerse AG DE EUR 05. Feb 2002
Number of employees
Current staff
Staff numbers
997
Cogent Communications Holdings employees.
Industry
Alternative Carriers
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 23:35
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.