COGECO COMMUNICATIONS INC (CCA.CA) Stock Fundamental Analysis
Canada - TSX:CCA - CA19239C1068 - Common Stock
65.75 CAD
+0.67 (+1.03%)
We assign a fundamental rating of 5 out of 10 to CCA. CCA was compared to 29 industry peers in the Diversified Telecommunication Services industry. While CCA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CCA is valued correctly, but it does not seem to be growing. CCA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CCA was profitable.
CCA had a positive operating cash flow in the past year.
CCA had positive earnings in each of the past 5 years.
CCA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CCA has a better Return On Assets (3.32%) than 93.10% of its industry peers.
CCA's Return On Equity of 10.46% is amongst the best of the industry. CCA outperforms 93.10% of its industry peers.
With an excellent Return On Invested Capital value of 6.75%, CCA belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CCA is in line with the industry average of 5.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 10.46% | ||
| ROIC | 6.75% |
ROA(3y)4.02%
ROA(5y)4.6%
ROE(3y)13.3%
ROE(5y)14.62%
ROIC(3y)7.39%
ROIC(5y)7.87%
1.3 Margins
CCA has a better Profit Margin (11.09%) than 93.10% of its industry peers.
CCA's Profit Margin has declined in the last couple of years.
CCA's Operating Margin of 24.79% is amongst the best of the industry. CCA outperforms 89.66% of its industry peers.
In the last couple of years the Operating Margin of CCA has remained more or less at the same level.
CCA's Gross Margin of 74.58% is amongst the best of the industry. CCA outperforms 96.55% of its industry peers.
CCA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.79% | ||
| PM (TTM) | 11.09% | ||
| GM | 74.58% |
OM growth 3Y-2.3%
OM growth 5Y-0.81%
PM growth 3Y-11.01%
PM growth 5Y-8.75%
GM growth 3Y0.9%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CCA is still creating some value.
Compared to 1 year ago, CCA has less shares outstanding
The number of shares outstanding for CCA has been reduced compared to 5 years ago.
CCA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that CCA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.04, CCA belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
CCA has a debt to FCF ratio of 8.15. This is a slightly negative value and a sign of low solvency as CCA would need 8.15 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 8.15, CCA belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
CCA has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
CCA has a better Debt to Equity ratio (1.42) than 96.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 8.15 | ||
| Altman-Z | 1.04 |
ROIC/WACC1.16
WACC5.8%
2.3 Liquidity
CCA has a Current Ratio of 0.49. This is a bad value and indicates that CCA is not financially healthy enough and could expect problems in meeting its short term obligations.
CCA has a worse Current ratio (0.49) than 89.66% of its industry peers.
A Quick Ratio of 0.49 indicates that CCA may have some problems paying its short term obligations.
The Quick ratio of CCA (0.49) is worse than 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for CCA have decreased by -1.02% in the last year.
CCA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.26% yearly.
Looking at the last year, CCA shows a decrease in Revenue. The Revenue has decreased by -0.76% in the last year.
CCA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.00% yearly.
EPS 1Y (TTM)-1.02%
EPS 3Y-2.36%
EPS 5Y-1.26%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y5.84%
Revenue growth 5Y5%
Sales Q2Q%-2.65%
3.2 Future
CCA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.52% yearly.
Based on estimates for the next years, CCA will show a decrease in Revenue. The Revenue will decrease by -1.33% on average per year.
EPS Next Y-0.94%
EPS Next 2Y-1.99%
EPS Next 3Y-0.11%
EPS Next 5Y2.52%
Revenue Next Year-1.79%
Revenue Next 2Y-2.17%
Revenue Next 3Y-1.98%
Revenue Next 5Y-1.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.48 indicates a reasonable valuation of CCA.
CCA's Price/Earnings ratio is a bit more expensive when compared to the industry. CCA is more expensive than 65.52% of the companies in the same industry.
CCA is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.75, which indicates a very decent valuation of CCA.
65.52% of the companies in the same industry are cheaper than CCA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CCA to the average of the S&P500 Index (22.73), we can say CCA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 8.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CCA is valued cheaply inside the industry as 96.55% of the companies are valued more expensively.
62.07% of the companies in the same industry are cheaper than CCA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.75 | ||
| EV/EBITDA | 5.03 |
4.3 Compensation for Growth
CCA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.99%
EPS Next 3Y-0.11%
5. Dividend
5.1 Amount
CCA has a Yearly Dividend Yield of 5.67%, which is a nice return.
Compared to an average industry Dividend Yield of 7.00, CCA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, CCA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
5.2 History
The dividend of CCA is nicely growing with an annual growth rate of 9.83%!
CCA has been paying a dividend for at least 10 years, so it has a reliable track record.
CCA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.83%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
CCA pays out 46.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
CCA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.42%
EPS Next 2Y-1.99%
EPS Next 3Y-0.11%
TSX:CCA (9/12/2025, 7:00:00 PM)
65.75
+0.67 (+1.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners48.92%
Inst Owner ChangeN/A
Ins Owners0.51%
Ins Owner ChangeN/A
Market Cap2.78B
Analysts70
Price Target76.6 (16.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
Yearly Dividend3.35
Dividend Growth(5Y)9.83%
DP46.42%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.99%
Min EPS beat(2)-12.32%
Max EPS beat(2)8.33%
EPS beat(4)3
Avg EPS beat(4)2.87%
Min EPS beat(4)-12.32%
Max EPS beat(4)15.42%
EPS beat(8)5
Avg EPS beat(8)1.8%
EPS beat(12)9
Avg EPS beat(12)4.39%
EPS beat(16)11
Avg EPS beat(16)3.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)0.82%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)0.82%
Revenue beat(8)1
Avg Revenue beat(8)-1.15%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)2
Avg Revenue beat(16)-0.92%
PT rev (1m)-1.44%
PT rev (3m)-4.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.49%
EPS NY rev (1m)-5.03%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-3.24%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 8.75 | ||
| P/S | 0.94 | ||
| P/FCF | 4.75 | ||
| P/OCF | 2.33 | ||
| P/B | 0.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.03 |
EPS(TTM)7.75
EY11.79%
EPS(NY)7.51
Fwd EY11.42%
FCF(TTM)13.85
FCFY21.07%
OCF(TTM)28.19
OCFY42.88%
SpS69.76
BVpS73.94
TBVpS-67.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 10.46% | ||
| ROCE | 8.11% | ||
| ROIC | 6.75% | ||
| ROICexc | 6.93% | ||
| ROICexgc | 21.84% | ||
| OM | 24.79% | ||
| PM (TTM) | 11.09% | ||
| GM | 74.58% | ||
| FCFM | 19.86% |
ROA(3y)4.02%
ROA(5y)4.6%
ROE(3y)13.3%
ROE(5y)14.62%
ROIC(3y)7.39%
ROIC(5y)7.87%
ROICexc(3y)7.57%
ROICexc(5y)8.23%
ROICexgc(3y)23.07%
ROICexgc(5y)25.86%
ROCE(3y)8.89%
ROCE(5y)9.46%
ROICexcg growth 3Y-10.26%
ROICexcg growth 5Y-4.9%
ROICexc growth 3Y-8.57%
ROICexc growth 5Y-3.4%
OM growth 3Y-2.3%
OM growth 5Y-0.81%
PM growth 3Y-11.01%
PM growth 5Y-8.75%
GM growth 3Y0.9%
GM growth 5Y0.84%
F-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 8.15 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 83.81% | ||
| Cap/Sales | 20.56% | ||
| Interest Coverage | 2.76 | ||
| Cash Conversion | 81.96% | ||
| Profit Quality | 179.07% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.04 |
F-Score6
WACC5.8%
ROIC/WACC1.16
Cap/Depr(3y)141.66%
Cap/Depr(5y)125.28%
Cap/Sales(3y)30.57%
Cap/Sales(5y)26.65%
Profit Quality(3y)60.03%
Profit Quality(5y)83.34%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.02%
EPS 3Y-2.36%
EPS 5Y-1.26%
EPS Q2Q%0%
EPS Next Y-0.94%
EPS Next 2Y-1.99%
EPS Next 3Y-0.11%
EPS Next 5Y2.52%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y5.84%
Revenue growth 5Y5%
Sales Q2Q%-2.65%
Revenue Next Year-1.79%
Revenue Next 2Y-2.17%
Revenue Next 3Y-1.98%
Revenue Next 5Y-1.33%
EBIT growth 1Y-5.8%
EBIT growth 3Y3.41%
EBIT growth 5Y4.15%
EBIT Next Year72.84%
EBIT Next 3Y19.9%
EBIT Next 5Y10.3%
FCF growth 1Y486.54%
FCF growth 3Y-13.64%
FCF growth 5Y-23.16%
OCF growth 1Y19.12%
OCF growth 3Y4.87%
OCF growth 5Y-6.01%