NasdaqGS:CCOI

Stock Analysis Report

Cogent Communications Holdings

Executive Summary

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.

Snowflake

Fundamentals

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.5%

CCOI

2.2%

US Telecom

0.5%

US Market


1 Year Return

8.6%

CCOI

11.0%

US Telecom

6.8%

US Market

Return vs Industry: CCOI underperformed the US Telecom industry which returned 11% over the past year.

Return vs Market: CCOI exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

CCOIIndustryMarket
7 Day0.5%2.2%0.5%
30 Day1.1%1.1%-0.8%
90 Day-7.9%13.7%-0.9%
1 Year13.6%8.6%16.7%11.0%9.2%6.8%
3 Year78.3%56.6%27.2%8.6%45.6%36.2%
5 Year119.9%77.8%42.7%10.2%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCOI ($56.84) is trading below our estimate of fair value ($58.43)

Significantly Below Fair Value: CCOI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CCOI is poor value based on its PE Ratio (81.5x) compared to the Telecom industry average (18.9x).

PE vs Market: CCOI is poor value based on its PE Ratio (81.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CCOI is poor value based on its PEG Ratio (3.6x)


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.


Next Steps

Future Growth

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

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCOI's forecast earnings growth (22.5% per year) is above the savings rate (2.7%).

Earnings vs Market: CCOI's earnings (22.5% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: CCOI's revenue (5.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CCOI's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCOI's Return on Equity is forecast to be very high in 3 years time (73%).


Next Steps

Past Performance

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

0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CCOI's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: CCOI's earnings growth over the past year (194.5%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: CCOI earnings growth over the past year (194.5%) exceeded the Telecom industry -23%.


Return on Equity

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


Return on Assets

ROA vs Industry: CCOI has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: CCOI has improved its Return on Capital Employed over the past 3 years.


Next Steps

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 (18.1%).

Interest Coverage: CCOI's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: CCOI has a high level of physical assets or inventory.

Debt Coverage by Assets: CCOI has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

4.36%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CCOI's dividend (4.36%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CCOI's dividend (4.36%) is in the top 25% of dividend payers in the US market (3.73%)

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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (327.1%), 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 (263.1% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Dave Schaeffer (63yo)

0yrs

Tenure

US$7,690,848

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 ($USD7.69M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.0yrs

Average Tenure

63yo

Average Age

Experienced Management: CCOI's management team is considered experienced (4 years average tenure).


Board Age and Tenure

13.3yrs

Average Tenure

63yo

Average Age

Experienced Board: CCOI's board of directors are seasoned and experienced ( 13.3 years average tenure).


Insider Trading

Insider Buying: CCOI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$39,34211 Sep 19
Lewis Ferguson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares675
Max PriceUS$58.28
SellUS$300,00005 Sep 19
Thaddeus Weed
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares5,000
Max PriceUS$60.00
SellUS$60,98003 Sep 19
Timothy O'Neill
EntityIndividual
Role
Other Key Executive
Vice President of Field Engineering
Shares1,000
Max PriceUS$60.98
SellUS$299,51822 Aug 19
Richard Liebhaber
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$59.90
SellUS$85,17613 Jun 19
Thaddeus Weed
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares1,400
Max PriceUS$60.84
SellUS$146,96610 Jun 19
Raymond Kummer
EntityIndividual
Role
Chief Technology Officer
CTO & VP of Optical Transport Engineering
Shares2,400
Max PriceUS$61.24
SellUS$292,50006 Jun 19
Thaddeus Weed
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares5,000
Max PriceUS$58.50
SellUS$234,48006 Jun 19
Timothy O'Neill
EntityIndividual
Role
Other Key Executive
Vice President of Field Engineering
Shares4,000
Max PriceUS$58.62
SellUS$29,58624 May 19
Lewis Ferguson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares515
Max PriceUS$57.45
SellUS$142,49622 May 19
Raymond Kummer
EntityIndividual
Role
Chief Technology Officer
CTO & VP of Optical Transport Engineering
Shares2,440
Max PriceUS$58.40
SellUS$578,77609 May 19
David Bath
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$57.88
SellUS$85,66307 May 19
Thaddeus Weed
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares1,500
Max PriceUS$57.11
SellUS$496,28013 Mar 19
Steven Brooks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,900
Max PriceUS$50.13
SellUS$100,00012 Mar 19
Marc Montagner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$50.00
SellUS$250,00012 Mar 19
Thaddeus Weed
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares5,000
Max PriceUS$50.00
SellUS$28,18708 Mar 19
Lewis Ferguson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares580
Max PriceUS$48.60
SellUS$140,65814 Dec 18
Thaddeus Weed
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares3,000
Max PriceUS$46.89
SellUS$37,76014 Dec 18
Lewis Ferguson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares800
Max PriceUS$47.20
SellUS$127,52309 Nov 18
James Wei
EntityIndividual
Shares2,500
Max PriceUS$51.01

Ownership Breakdown


Management Team

  • Dave Schaeffer (63yo)

    Founder

    • Tenure: 0yrs
    • Compensation: US$7.69m
  • Tad Weed (58yo)

    CFO & Treasurer

    • Tenure: 15.4yrs
    • Compensation: US$1.41m
  • Robert Beury (65yo)

    • Tenure: 0.4yrs
    • Compensation: US$850.34k
  • Raymond Kummer (70yo)

    CTO & VP of Optical Transport Engineering

    • Tenure: 0yrs
    • Compensation: US$190.00k
  • Tim O'Neill (63yo)

    Vice President of Field Engineering

    • Tenure: 0yrs
    • Compensation: US$844.40k
  • Vincent Teissier (51yo)

    Director of Business Development

    • Tenure: 0yrs
  • Ried Zulager

    Secretary

    • Tenure: 0yrs
  • James Bubeck (53yo)

    Chief Revenue Officer & VP of Global Sales

    • Tenure: 4yrs
    • Compensation: US$872.67k
  • John Chang

    Chief Legal Officer

    • Tenure: 0yrs

Board Members

  • Steven Brooks (67yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$349.61k
  • Dave Schaeffer (63yo)

    Founder

    • Tenure: 0yrs
    • Compensation: US$7.69m
  • Timothy Weingarten (43yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$348.61k
  • Richard Liebhaber (83yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$350.61k
  • Marc Montagner (57yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$348.61k
  • Lewis Ferguson (74yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$98.93k
  • David Bath (56yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$348.61k

Company Information

Cogent Communications Holdings, Inc.'s company bio, 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$2.579b
  • Shares outstanding: 45.37m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCOINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2002
OGM1DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2002

Biography

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 businesse ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.