COGECO COMMUNICATIONS INC (CCA.CA) Stock Fundamental Analysis
TSX:CCA - Toronto Stock Exchange - CA19239C1068 - Common Stock - Currency: CAD
Overall CCA gets a fundamental rating of 5 out of 10. We evaluated CCA against 30 industry peers in the Diversified Telecommunication Services industry. CCA scores excellent on profitability, but there are some minor concerns on its financial health. CCA is valued correctly, but it does not seem to be growing. Finally CCA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CCA had positive earnings in the past year.
CCA had a positive operating cash flow in the past year.
In the past 5 years CCA has always been profitable.
In the past 5 years CCA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.32%, CCA belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
The Return On Equity of CCA (10.46%) is better than 93.33% of its industry peers.
The Return On Invested Capital of CCA (6.75%) is better than 90.00% of its industry peers.
CCA had an Average Return On Invested Capital over the past 3 years of 7.39%. This is in line with the industry average of 5.41%.
| 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 Profit Margin of 11.09%. This is amongst the best in the industry. CCA outperforms 93.33% of its industry peers.
CCA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.79%, CCA belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CCA has remained more or less at the same level.
CCA has a Gross Margin of 74.58%. This is amongst the best in the industry. CCA outperforms 96.67% 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
CCA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
The debt/assets ratio for CCA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.03, we must say that CCA is in the distress zone and has some risk of bankruptcy.
CCA has a better Altman-Z score (1.03) than 93.33% of its industry peers.
The Debt to FCF ratio of CCA is 8.15, which is on the high side as it means it would take CCA, 8.15 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CCA (8.15) is better than 93.33% of its industry peers.
CCA has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
With an excellent Debt to Equity ratio value of 1.42, CCA belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 8.15 | ||
| Altman-Z | 1.03 |
ROIC/WACC1.18
WACC5.71%
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's Current ratio of 0.49 is on the low side compared to the rest of the industry. CCA is outperformed by 90.00% of its industry peers.
A Quick Ratio of 0.49 indicates that CCA may have some problems paying its short term obligations.
CCA has a Quick ratio of 0.49. This is amonst the worse of the industry: CCA underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
CCA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.02%.
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 -0.76% in the last year.
Measured over the past years, CCA shows a small growth in Revenue. The Revenue has been growing by 5.00% on average per year.
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
The Earnings Per Share is expected to grow by 7.67% on average over the next years.
The Revenue is expected to grow by 0.34% on average over the next years.
EPS Next Y4.31%
EPS Next 2Y2.79%
EPS Next 3Y3.88%
EPS Next 5Y7.67%
Revenue Next Year-1.66%
Revenue Next 2Y-2%
Revenue Next 3Y-1.44%
Revenue Next 5Y0.34%
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 8.13 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 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of CCA to the average of the S&P500 Index (27.03), we can say CCA is valued rather cheaply.
The Price/Forward Earnings ratio is 7.63, which indicates a rather cheap valuation of CCA.
CCA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CCA is more expensive than 63.33% of the companies in the same industry.
CCA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CCA indicates a rather cheap valuation: CCA is cheaper than 96.67% of the companies listed in the same industry.
96.67% of the companies in the same industry are more expensive than CCA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.55 | ||
| EV/EBITDA | 4.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CCA does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CCA may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)N/A
EPS Next 2Y2.79%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
CCA has a Yearly Dividend Yield of 5.91%, which is a nice return.
Compared to an average industry Dividend Yield of 6.06, CCA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, CCA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of CCA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.42%
EPS Next 2Y2.79%
EPS Next 3Y3.88%
TSX:CCA (8/5/2025, 7:00:00 PM)
63.04
+0.43 (+0.69%)
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 Cap2.66B
Analysts75.71
Price Target80.12 (27.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
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)0.19%
PT rev (3m)1.22%
EPS NQ rev (1m)-8.01%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.93%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 7.63 | ||
| P/S | 0.9 | ||
| P/FCF | 4.55 | ||
| P/OCF | 2.24 | ||
| P/B | 0.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.94 |
EPS(TTM)7.75
EY12.29%
EPS(NY)8.26
Fwd EY13.11%
FCF(TTM)13.86
FCFY21.98%
OCF(TTM)28.2
OCFY44.73%
SpS69.78
BVpS73.96
TBVpS-67.78
PEG (NY)1.89
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 | 1.03 |
F-Score6
WACC5.71%
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)-1.02%
EPS 3Y-2.36%
EPS 5Y-1.26%
EPS Q2Q%0%
EPS Next Y4.31%
EPS Next 2Y2.79%
EPS Next 3Y3.88%
EPS Next 5Y7.67%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y5.84%
Revenue growth 5Y5%
Sales Q2Q%-2.65%
Revenue Next Year-1.66%
Revenue Next 2Y-2%
Revenue Next 3Y-1.44%
Revenue Next 5Y0.34%
EBIT growth 1Y-5.8%
EBIT growth 3Y3.41%
EBIT growth 5Y4.15%
EBIT Next Year72.84%
EBIT Next 3Y19.9%
EBIT Next 5Y11.53%
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%