COGECO COMMUNICATIONS INC (CCA.CA) Stock Fundamental Analysis
TSX:CCA - Toronto Stock Exchange - CA19239C1068 - Common Stock - Currency: CAD
Taking everything into account, CCA scores 5 out of 10 in our fundamental rating. CCA was compared to 30 industry peers in the Diversified Telecommunication Services industry. While CCA has a great profitability rating, there are quite some concerns on its financial health. CCA has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally CCA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CCA had positive earnings in the past year.
In the past year CCA had a positive cash flow from operations.
CCA had positive earnings in each of the past 5 years.
Each year in the past 5 years CCA had a positive operating cash flow.
1.2 Ratios
CCA has a better Return On Assets (3.50%) than 93.33% of its industry peers.
The Return On Equity of CCA (11.17%) is better than 93.33% of its industry peers.
CCA's Return On Invested Capital of 6.91% is amongst the best of the industry. CCA outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CCA is in line with the industry average of 6.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 11.17% | ||
| ROIC | 6.91% |
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
Looking at the Profit Margin, with a value of 11.68%, CCA belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Profit Margin of CCA has declined.
CCA's Operating Margin of 25.55% is amongst the best of the industry. CCA outperforms 96.67% of its industry peers.
In the last couple of years the Operating Margin of CCA has remained more or less at the same level.
With an excellent Gross Margin value of 74.75%, CCA belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
CCA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.55% | ||
| PM (TTM) | 11.68% | ||
| GM | 74.75% |
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.
The number of shares outstanding for CCA has been reduced compared to 1 year ago.
Compared to 5 years ago, CCA has less shares outstanding
CCA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that CCA is in the distress zone and has some risk of bankruptcy.
CCA has a better Altman-Z score (1.05) than 93.33% of its industry peers.
The Debt to FCF ratio of CCA is 16.96, which is on the high side as it means it would take CCA, 16.96 years of fcf income to pay off all of its debts.
CCA's Debt to FCF ratio of 16.96 is on the low side compared to the rest of the industry. CCA is outperformed by 76.67% of its industry peers.
A Debt/Equity ratio of 1.48 is on the high side and indicates that CCA has dependencies on debt financing.
With an excellent Debt to Equity ratio value of 1.48, CCA belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 16.96 | ||
| Altman-Z | 1.05 |
ROIC/WACC1.18
WACC5.87%
2.3 Liquidity
CCA has a Current Ratio of 0.37. 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 (0.37) than 90.00% of its industry peers.
CCA has a Quick Ratio of 0.37. 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 Quick ratio of 0.37. This is amonst the worse of the industry: CCA underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for CCA have decreased by -3.53% in the last year.
The Earnings Per Share has been decreasing by -1.26% on average over the past years.
Looking at the last year, CCA shows a decrease in Revenue. The Revenue has decreased by -0.07% in the last year.
The Revenue has been growing slightly by 5.00% on average over the past years.
EPS 1Y (TTM)-3.53%
EPS 3Y-2.36%
EPS 5Y-1.26%
EPS Q2Q%18.41%
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y5.84%
Revenue growth 5Y5%
Sales Q2Q%-1.2%
3.2 Future
The Earnings Per Share is expected to grow by 4.12% on average over the next years.
CCA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.49% yearly.
EPS Next Y5.99%
EPS Next 2Y2.27%
EPS Next 3Y4.12%
EPS Next 5YN/A
Revenue Next Year-0.66%
Revenue Next 2Y-0.43%
Revenue Next 3Y-0.49%
Revenue Next 5YN/A
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
CCA is valuated cheaply with a Price/Earnings ratio of 7.92.
CCA's Price/Earnings ratio is a bit more expensive when compared to the industry. CCA is more expensive than 70.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.43. CCA is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.93, the valuation of CCA can be described as very cheap.
Based on the Price/Forward Earnings ratio, CCA is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, CCA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.92 | ||
| Fwd PE | 7.93 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than CCA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CCA is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.23 | ||
| EV/EBITDA | 5.41 |
4.3 Compensation for Growth
CCA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CCA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.32
PEG (5Y)N/A
EPS Next 2Y2.27%
EPS Next 3Y4.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.78%, CCA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 10.68, CCA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.30, CCA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
5.2 History
On average, the dividend of CCA grows each year by 9.83%, which is quite nice.
CCA has paid a dividend for at least 10 years, which is 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 42.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CCA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.13%
EPS Next 2Y2.27%
EPS Next 3Y4.12%
COGECO COMMUNICATIONS INC
TSX:CCA (2/14/2025, 7:00:00 PM)
64.87
+1.03 (+1.61%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners43.7%
Inst Owner ChangeN/A
Ins Owners0.54%
Ins Owner ChangeN/A
Market Cap2.98B
Analysts75.71
Price Target79.71 (22.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
Yearly Dividend3.35
Dividend Growth(5Y)9.83%
DP42.13%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.73%
Min EPS beat(2)0.04%
Max EPS beat(2)15.42%
EPS beat(4)3
Avg EPS beat(4)2.97%
Min EPS beat(4)-17.62%
Max EPS beat(4)15.42%
EPS beat(8)6
Avg EPS beat(8)4.9%
EPS beat(12)9
Avg EPS beat(12)4.75%
EPS beat(16)11
Avg EPS beat(16)3.37%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)-1.25%
Revenue beat(4)0
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-0.09%
Revenue beat(8)0
Avg Revenue beat(8)-1.35%
Revenue beat(12)1
Avg Revenue beat(12)-1.06%
Revenue beat(16)2
Avg Revenue beat(16)-0.98%
PT rev (1m)-1.39%
PT rev (3m)5.97%
EPS NQ rev (1m)-11.69%
EPS NQ rev (3m)-3.71%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)-1.25%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.92 | ||
| Fwd PE | 7.93 | ||
| P/S | 1 | ||
| P/FCF | 10.23 | ||
| P/OCF | 2.58 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.41 |
EPS(TTM)8.19
EY12.63%
EPS(NY)8.18
Fwd EY12.61%
FCF(TTM)6.34
FCFY9.78%
OCF(TTM)25.18
OCFY38.81%
SpS64.57
BVpS67.51
TBVpS-65.03
PEG (NY)1.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 11.17% | ||
| ROCE | 8.3% | ||
| ROIC | 6.91% | ||
| ROICexc | 6.97% | ||
| ROICexgc | 21.31% | ||
| OM | 25.55% | ||
| PM (TTM) | 11.68% | ||
| GM | 74.75% | ||
| FCFM | 9.83% |
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 | 1.48 | ||
| Debt/FCF | 16.96 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 125.39% | ||
| Cap/Sales | 29.17% | ||
| Interest Coverage | 2.87 | ||
| Cash Conversion | 79.88% | ||
| Profit Quality | 84.12% | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.05 |
F-Score6
WACC5.87%
ROIC/WACC1.18
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)-3.53%
EPS 3Y-2.36%
EPS 5Y-1.26%
EPS Q2Q%18.41%
EPS Next Y5.99%
EPS Next 2Y2.27%
EPS Next 3Y4.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y5.84%
Revenue growth 5Y5%
Sales Q2Q%-1.2%
Revenue Next Year-0.66%
Revenue Next 2Y-0.43%
Revenue Next 3Y-0.49%
Revenue Next 5YN/A
EBIT growth 1Y-3.82%
EBIT growth 3Y3.41%
EBIT growth 5Y4.15%
EBIT Next Year71.66%
EBIT Next 3Y20.74%
EBIT Next 5Y11.61%
FCF growth 1Y273.92%
FCF growth 3Y-13.64%
FCF growth 5Y-23.16%
OCF growth 1Y0.84%
OCF growth 3Y4.87%
OCF growth 5Y-6.01%