| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 1/6 |
| Financial Health | 0/6 |
| Dividends | 2/6 |
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.
Rewards
Risk Analysis
Dividend of 4.35% is not well covered by earnings or forecast to be in the next 3 years
+ 2 more risks
Cogent Communications Holdings Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$75.23 |
| 52 Week High | US$53.20 |
| 52 Week Low | US$80.00 |
| Beta | 0.12 |
| 1 Month Change | 3.82% |
| 3 Month Change | -3.04% |
| 1 Year Change | 34.27% |
| 3 Year Change | 44.45% |
| 5 Year Change | 106.96% |
| Change since IPO | -25.52% |
Recent News & Updates
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...
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...
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
| CCOI | US Telecom | US Market | |
|---|---|---|---|
| 7D | 3.1% | 1.1% | 1.9% |
| 1Y | 34.3% | -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
| CCOI volatility | |
|---|---|
| CCOI Beta | 0.12 |
| Industry Beta | 0.63 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1999 | 1,087 | Dave Schaeffer | https://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
| CCOI fundamental statistics | |
|---|---|
| Market Cap | US$3.48b |
| Earnings (TTM) | US$4.78m |
| Revenue (TTM) | US$563.46m |
726.9x
P/E Ratio6.2x
P/S RatioIs CCOI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CCOI income statement (TTM) | |
|---|---|
| Revenue | US$563.46m |
| Cost of Revenue | US$205.22m |
| Gross Profit | US$358.23m |
| Expenses | US$353.45m |
| Earnings | US$4.78m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 04, 2021
| Earnings per share (EPS) | 0.10 |
| Gross Margin | 63.58% |
| Net Profit Margin | 0.85% |
| Debt/Equity Ratio | -270.5% |
How did CCOI perform over the long term?
See historical performance and comparisonDividends
4.3%
Current Dividend Yield2,868%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/26 22:31 |
| End of Day Share Price | 2021/10/26 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.