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

-6.2%

NasdaqGS:CCOI

-2.9%

US Telecom

-0.02%

US Market


1 Year Return

-0.1%

NasdaqGS:CCOI

7.9%

US Telecom

1.6%

US Market

CCOI underperformed the Telecom industry which returned 7% over the past year.

CCOI underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

CCOIIndustryMarket
7 Day-6.2%-2.9%-0.02%
30 Day-6.0%4.4%2.7%
90 Day-6.3%8.4%1.4%
1 Year4.4%-0.1%13.6%7.9%3.8%1.6%
3 Year73.9%52.8%15.6%-1.2%45.2%35.8%
5 Year104.6%65.4%33.5%2.9%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

5%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cogent Communications Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Cogent Communications Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Cogent Communications Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Cogent Communications Holdings has negative assets, we can't compare the value of its assets to the US Telecom industry average.


Next Steps

Future Growth

How is Cogent Communications Holdings expected 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 Estimates


Future Annual Growth Analysis

Cogent Communications Holdings's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Cogent Communications Holdings's earnings are expected to grow significantly at over 20% yearly.

Cogent Communications Holdings's revenue growth is positive but not above the United States of America market average.

Cogent Communications Holdings's earnings growth is expected to exceed the United States of America market average.

Cogent Communications Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cogent Communications Holdings is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


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

Cogent Communications Holdings's year on year earnings growth rate has been positive over the past 5 years.

Cogent Communications Holdings's 1-year earnings growth exceeds its 5-year average (194.5% vs 0.7%)

Cogent Communications Holdings's earnings growth has exceeded the US Telecom industry average in the past year (194.5% vs -18%).


Return on Equity

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.


Return on Assets

Cogent Communications Holdings used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Cogent Communications Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cogent Communications Holdings's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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 (18.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).


Balance Sheet

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.


Next Steps

Dividend

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

5.03%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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 (3.69%).

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

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).


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?

3.9yrs

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

Dave's remuneration is higher than average for companies of similar size in United States of America.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.9yrs

Average Tenure

63yo

Average Age

The tenure for the Cogent Communications Holdings management team is about average.


Board Age and Tenure

13.2yrs

Average Tenure

63yo

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.


Insider Trading

Cogent Communications Holdings individual 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
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
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
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
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
Director
Shares9,900
Max PriceUS$50.13
SellUS$100,00012 Mar 19
Marc Montagner
EntityIndividual
Role
Member of the Board of Directors
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
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
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: 15.3yrs
    • Compensation: US$1.41m
  • Robert Beury (65yo)

    • Tenure: 0.3yrs
    • 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: 3.9yrs
    • Compensation: US$872.67k
  • John Chang

    Chief Legal Officer

    • Tenure: 0yrs

Board Members

  • Steven Brooks (67yo)

    Director

    • Tenure: 15.9yrs
    • Compensation: US$349.61k
  • Dave Schaeffer (63yo)

    Founder

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

    Director

    • Tenure: 15.9yrs
    • Compensation: US$348.61k
  • Richard Liebhaber (83yo)

    Director

    • Tenure: 13.5yrs
    • Compensation: US$350.61k
  • Marc Montagner (57yo)

    Director

    • Tenure: 9.4yrs
    • Compensation: US$348.61k
  • Lewis Ferguson (74yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$98.93k
  • David Bath (56yo)

    Director

    • Tenure: 12.8yrs
    • 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$2.513b
  • 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 Analysis2019/09/18 23:33
End of Day Share Price2019/09/18 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.