COGECO COMMUNICATIONS INC (CCA.CA) Stock Fundamental Analysis
TSX:CCA - Toronto Stock Exchange - CA19239C1068 - Common Stock - Currency: CAD
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 has a great profitability rating, there are quite some concerns on its financial health. CCA has a valuation in line with the averages, 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.
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
Looking at the Return On Assets, with a value of 3.23%, CCA belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
CCA has a Return On Equity of 10.31%. This is amongst the best in the industry. CCA outperforms 93.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.65%, CCA belongs to the top 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 5.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 10.31% | ||
| ROIC | 6.65% |
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 11.03%, CCA belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
In the last couple of years the Profit Margin of CCA has declined.
CCA has a Operating Margin of 25.21%. This is amongst the best in the industry. CCA outperforms 96.55% 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 has a Gross Margin of 74.75%. This is amongst the best in 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 | 25.21% | ||
| PM (TTM) | 11.03% | ||
| 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
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
CCA has less shares outstanding than it did 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.
The Debt to FCF ratio of CCA is 18.25, which is on the high side as it means it would take CCA, 18.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 18.25, CCA is doing worse than 79.31% of the companies in the same industry.
CCA has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
CCA has a Debt to Equity ratio of 1.48. This is amongst the best in the industry. CCA outperforms 96.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 18.25 | ||
| Altman-Z | 1.04 |
ROIC/WACC1.16
WACC5.72%
2.3 Liquidity
A Current Ratio of 0.46 indicates that CCA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.46, CCA is doing worse than 89.66% of the companies in the same industry.
CCA has a Quick Ratio of 0.46. This is a bad value and indicates that CCA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.46, CCA is not doing good in the industry: 89.66% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
CCA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.82%.
Measured over the past years, CCA shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.26% on average per year.
Looking at the last year, CCA shows a small growth in Revenue. The Revenue has grown by 0.21% 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)-8.82%
EPS 3Y-2.36%
EPS 5Y-1.26%
EPS Q2Q%-20%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y5.84%
Revenue growth 5Y5%
Sales Q2Q%0.26%
3.2 Future
Based on estimates for the next years, CCA will show a small growth in Earnings Per Share. The EPS will grow by 7.73% on average per year.
The Revenue is expected to grow by 0.40% on average over the next years.
EPS Next Y4.31%
EPS Next 2Y2.79%
EPS Next 3Y3.88%
EPS Next 5Y7.73%
Revenue Next Year-0.93%
Revenue Next 2Y-0.88%
Revenue Next 3Y-0.61%
Revenue Next 5Y0.4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 8.63 indicates a reasonable valuation of CCA.
68.97% of the companies in the same industry are cheaper than CCA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.85, CCA is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.09, the valuation of CCA can be described as very reasonable.
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 (20.77), we can say CCA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CCA is valued a bit more expensive than 65.52% of the companies in the same industry.
79.31% 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 | 11.08 | ||
| EV/EBITDA | 5.5 |
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)2
PEG (5Y)N/A
EPS Next 2Y2.79%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.70%, CCA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.56, CCA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.45, CCA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
5.2 History
On average, the dividend of CCA grows each year by 9.83%, which is quite nice.
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
45.45% of the earnings are spent on dividend by CCA. 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.
DP45.45%
EPS Next 2Y2.79%
EPS Next 3Y3.88%
TSX:CCA (5/1/2025, 7:00:00 PM)
66.85
-0.95 (-1.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners45.01%
Inst Owner ChangeN/A
Ins Owners0.48%
Ins Owner ChangeN/A
Market Cap3.07B
Analysts75.71
Price Target79.15 (18.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
Yearly Dividend3.35
Dividend Growth(5Y)9.83%
DP45.45%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.87%
Min EPS beat(2)8.33%
Max EPS beat(2)15.42%
EPS beat(4)3
Avg EPS beat(4)1.54%
Min EPS beat(4)-17.62%
Max EPS beat(4)15.42%
EPS beat(8)6
Avg EPS beat(8)5.41%
EPS beat(12)9
Avg EPS beat(12)4.9%
EPS beat(16)11
Avg EPS beat(16)3.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)0.82%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)0.82%
Revenue beat(8)1
Avg Revenue beat(8)-1.06%
Revenue beat(12)2
Avg Revenue beat(12)-0.91%
Revenue beat(16)2
Avg Revenue beat(16)-0.97%
PT rev (1m)-0.7%
PT rev (3m)-2.08%
EPS NQ rev (1m)-5.58%
EPS NQ rev (3m)-7.96%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 8.09 | ||
| P/S | 1.03 | ||
| P/FCF | 11.08 | ||
| P/OCF | 2.73 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.5 |
EPS(TTM)7.75
EY11.59%
EPS(NY)8.26
Fwd EY12.36%
FCF(TTM)6.03
FCFY9.02%
OCF(TTM)24.48
OCFY36.61%
SpS64.61
BVpS69.12
TBVpS-65.96
PEG (NY)2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 10.31% | ||
| ROCE | 8% | ||
| ROIC | 6.65% | ||
| ROICexc | 6.74% | ||
| ROICexgc | 20.55% | ||
| OM | 25.21% | ||
| PM (TTM) | 11.03% | ||
| GM | 74.75% | ||
| FCFM | 9.33% |
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-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 18.25 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 119.48% | ||
| Cap/Sales | 28.55% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 77.15% | ||
| Profit Quality | 84.6% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 1.04 |
F-Score5
WACC5.72%
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)-8.82%
EPS 3Y-2.36%
EPS 5Y-1.26%
EPS Q2Q%-20%
EPS Next Y4.31%
EPS Next 2Y2.79%
EPS Next 3Y3.88%
EPS Next 5Y7.73%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y5.84%
Revenue growth 5Y5%
Sales Q2Q%0.26%
Revenue Next Year-0.93%
Revenue Next 2Y-0.88%
Revenue Next 3Y-0.61%
Revenue Next 5Y0.4%
EBIT growth 1Y-3.4%
EBIT growth 3Y3.41%
EBIT growth 5Y4.15%
EBIT Next Year71.54%
EBIT Next 3Y20.42%
EBIT Next 5Y11.4%
FCF growth 1Y38.38%
FCF growth 3Y-13.64%
FCF growth 5Y-23.16%
OCF growth 1Y5.19%
OCF growth 3Y4.87%
OCF growth 5Y-6.01%