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CCOI

Cogent Communications HoldingsNasdaqGS:CCOI Stock Report

Market Cap

US$3.5b

7D

3.1%

1Y

34.3%

Updated

26 Oct, 2021

Data

Company Financials +
CCOI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health0/6
Dividends2/6

CCOI Overview

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Asia, South America, Australia, and Africa.

Cogent Communications Holdings Competitors

Iridium Communications

NasdaqGS:IRDM

US$5.4b

Verizon Communications

NYSE:VZ

US$217.7b

AT&T

NYSE:T

US$183.1b

Crown Castle International (REIT)

NYSE:CCI

US$76.8b

Price History & Performance

Summary of all time highs, changes and price drops for Cogent Communications Holdings
Historical stock prices
Current Share PriceUS$75.23
52 Week HighUS$53.20
52 Week LowUS$80.00
Beta0.12
1 Month Change3.82%
3 Month Change-3.04%
1 Year Change34.27%
3 Year Change44.45%
5 Year Change106.96%
Change since IPO-25.52%

Recent News & Updates

Oct 06
Cogent Communications Holdings, Inc.'s (NASDAQ:CCOI) Intrinsic Value Is Potentially 44% Above Its Share Price

Cogent Communications Holdings, Inc.'s (NASDAQ:CCOI) Intrinsic Value Is Potentially 44% Above Its Share Price

Does the October share price for Cogent Communications Holdings, Inc. ( NASDAQ:CCOI ) reflect what it's really worth...

Sep 06
Returns On Capital Are Showing Encouraging Signs At Cogent Communications Holdings (NASDAQ:CCOI)

Returns On Capital Are Showing Encouraging Signs At Cogent Communications Holdings (NASDAQ:CCOI)

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...

Aug 20

Lumen Could Be Cogent In 5 Years

Cogent is a great business, and we think that it is a great model for Lumen. With the same markets as Lumen, just much more levered towards high growth CDN, Cogent shows what Lumen's long-term growth profile could become with upcoming investments. Lumen trades at a fraction of the Cogent multiple, and good exits in declining businesses will help them rapidly close the gap on those business profiles and hopefully multiples. Lumen is a turnaround story, but we think that the risk far outweighs the reward, and Cogent's strong revenue profile could be achieved in time. We actually think Lumen management is doing a good job, and that the business has actually been turning around longer than investors realised. Patience!

Shareholder Returns

CCOIUS TelecomUS Market
7D3.1%1.1%1.9%
1Y34.3%-4.0%33.4%

Return vs Industry: CCOI exceeded the US Telecom industry which returned -4.8% over the past year.

Return vs Market: CCOI matched the US Market which returned 30.3% over the past year.

Price Volatility

Is CCOI's price volatile compared to industry and market?
CCOI volatility
CCOI Beta0.12
Industry Beta0.63
Market Beta1

Stable Share Price: CCOI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CCOI's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19991,087Dave Schaefferhttps://www.cogentco.com

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Asia, South America, Australia, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, Web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers. It also provides Internet access and private network services to customers that are not located in buildings directly connected to its network; and on-net services to customers located in buildings that are physically connected to its network.

Cogent Communications Holdings Fundamentals Summary

How do Cogent Communications Holdings's earnings and revenue compare to its market cap?
CCOI fundamental statistics
Market CapUS$3.48b
Earnings (TTM)US$4.78m
Revenue (TTM)US$563.46m

726.9x

P/E Ratio

6.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CCOI income statement (TTM)
RevenueUS$563.46m
Cost of RevenueUS$205.22m
Gross ProfitUS$358.23m
ExpensesUS$353.45m
EarningsUS$4.78m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)0.10
Gross Margin63.58%
Net Profit Margin0.85%
Debt/Equity Ratio-270.5%

How did CCOI perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

2,868%

Payout Ratio

Valuation

Is Cogent Communications Holdings undervalued compared to its fair value and its price relative to the market?

27.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCOI ($74.07) is trading below our estimate of fair value ($104.06)

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


Price To Earnings Ratio

PE vs Industry: CCOI is poor value based on its PE Ratio (715.7x) compared to the US Telecom industry average (14.9x).

PE vs Market: CCOI is poor value based on its PE Ratio (715.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CCOI is poor value based on its PEG Ratio (26x)


Price to Book Ratio

PB vs Industry: CCOI has negative assets, so we can't compare its PB Ratio to the US Telecom industry average.


Future Growth

How is Cogent Communications Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

27.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCOI's forecast earnings growth (27.5% per year) is above the savings rate (2%).

Earnings vs Market: CCOI's earnings (27.5% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CCOI's revenue (6.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: CCOI's revenue (6.4% 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 CCOI's Return on Equity is forecast to be high in 3 years time


Past Performance

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

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCOI has a large one-off loss of $15.0M impacting its June 30 2021 financial results.

Growing Profit Margin: CCOI's current net profit margins (0.8%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: CCOI's earnings have grown by 10.8% per year over the past 5 years.

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

Earnings vs Industry: CCOI had negative earnings growth (-87.7%) over the past year, making it difficult to compare to the Telecom industry average (101.5%).


Return on Equity

High ROE: CCOI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Cogent Communications Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CCOI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CCOI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CCOI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CCOI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: CCOI's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: CCOI's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

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

4.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CCOI's dividend (4.35%) is higher than the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: CCOI's dividend (4.35%) is in the top 25% of dividend payers in the US market (3.48%)


Stability and Growth of Payments

Stable Dividend: CCOI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CCOI's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (2867.7%), CCOI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCOI's dividends in 3 years are not forecast to be well covered by earnings (243.3% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Dave Schaeffer (65 yo)

no data

Tenure

US$14,020,510

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD14.02M) is above average for companies of similar size in the US market ($USD5.18M).

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


Leadership Team

Experienced Management: CCOI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: CCOI's board of directors are not considered experienced ( 2.5 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: CCOI insiders have only sold shares 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

Cogent Communications Holdings, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cogent Communications Holdings, Inc.
  • Ticker: CCOI
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$3.476b
  • Shares outstanding: 46.21m
  • Website: https://www.cogentco.com

Number of Employees


Location

  • Cogent Communications Holdings, Inc.
  • 2450 North Street NW
  • Washington
  • District Of Columbia
  • 20037
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 22:31
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.