COGECO COMMUNICATIONS INC (CCA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CCA - CA19239C1068 - Common Stock
66.49 CAD
-1.01 (-1.5%)
Taking everything into account, CCA scores 4 out of 10 in our fundamental rating. CCA was compared to 30 industry peers in the Diversified Telecommunication Services industry. CCA has an average financial health and profitability rating. 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
- 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.
- 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 3.17%, CCA is doing worse than 76.67% of the companies in the same industry.
- The Return On Equity of CCA (9.63%) is worse than 76.67% of its industry peers.
- CCA's Return On Invested Capital of 6.51% is amongst the best of the industry. CCA outperforms 93.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CCA is in line with the industry average of 5.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 9.63% | ||
| ROIC | 6.51% |
ROA(3y)3.6%
ROA(5y)4.17%
ROE(3y)11.58%
ROE(5y)13.35%
ROIC(3y)6.95%
ROIC(5y)7.43%
1.3 Margins
- CCA has a Profit Margin of 10.79%. This is in the lower half of the industry: CCA underperforms 76.67% of its industry peers.
- CCA's Profit Margin has declined in the last couple of years.
- CCA has a Operating Margin of 25.02%. This is amongst the best in the industry. CCA outperforms 93.33% of its industry peers.
- In the last couple of years the Operating Margin of CCA has declined.
- CCA has a better Gross Margin (74.55%) than 96.67% of its industry peers.
- CCA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.02% | ||
| PM (TTM) | 10.79% | ||
| GM | 74.55% |
OM growth 3Y-2.05%
OM growth 5Y-1.69%
PM growth 3Y-8.76%
PM growth 5Y-6.77%
GM growth 3Y0.76%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CCA is creating some value.
- The number of shares outstanding for CCA has been reduced compared to 1 year ago.
- CCA has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CCA has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.06, we must say that CCA is in the distress zone and has some risk of bankruptcy.
- CCA's Altman-Z score of 1.06 is amongst the best of the industry. CCA outperforms 93.33% of its industry peers.
- CCA has a debt to FCF ratio of 9.59. This is a negative value and a sign of low solvency as CCA would need 9.59 years to pay back of all of its debts.
- CCA has a better Debt to FCF ratio (9.59) than 93.33% of its industry peers.
- CCA has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of CCA (1.36) is better than 96.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | 9.59 | ||
| Altman-Z | 1.06 |
ROIC/WACC1.09
WACC5.96%
2.3 Liquidity
- CCA has a Current Ratio of 0.40. This is a bad value and indicates that CCA is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.40, CCA is doing worse than 93.33% of the companies in the same industry.
- A Quick Ratio of 0.40 indicates that CCA may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.40, CCA is doing worse than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
- The earnings per share for CCA have decreased strongly by -10.38% in the last year.
- Measured over the past years, CCA shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.10% on average per year.
- The Revenue has decreased by -2.98% in the past year.
- Measured over the past years, CCA shows a small growth in Revenue. The Revenue has been growing by 4.07% on average per year.
EPS 1Y (TTM)-10.38%
EPS 3Y-5.67%
EPS 5Y-0.1%
EPS Q2Q%-12.18%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y0.11%
Revenue growth 5Y4.07%
Sales Q2Q%-4.26%
3.2 Future
- The Earnings Per Share is expected to grow by 3.28% on average over the next years.
- The Revenue is expected to decrease by -1.53% on average over the next years.
EPS Next Y15.15%
EPS Next 2Y8.8%
EPS Next 3Y3.64%
EPS Next 5Y3.28%
Revenue Next Year-3.18%
Revenue Next 2Y-2.35%
Revenue Next 3Y-1.9%
Revenue Next 5Y-1.53%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.06, the valuation of CCA can be described as reasonable.
- Based on the Price/Earnings ratio, CCA is valued a bit more expensive than 70.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, CCA is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 7.36, the valuation of CCA can be described as very cheap.
- 93.33% of the companies in the same industry are more expensive than CCA, based on the Price/Forward Earnings ratio.
- CCA is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 7.36 |
4.2 Price Multiples
- 96.67% of the companies in the same industry are more expensive than CCA, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, CCA is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.81 | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
- CCA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y8.8%
EPS Next 3Y3.64%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.52%, CCA is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.16, CCA is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, CCA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
5.2 History
- The dividend of CCA is nicely growing with an annual growth rate of 9.71%!
- 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)9.71%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
- CCA pays out 50.68% 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.
DP50.68%
EPS Next 2Y8.8%
EPS Next 3Y3.64%
COGECO COMMUNICATIONS INC / CCA.CA FAQ
What is the fundamental rating for CCA stock?
ChartMill assigns a fundamental rating of 4 / 10 to CCA.CA.
Can you provide the valuation status for COGECO COMMUNICATIONS INC?
ChartMill assigns a valuation rating of 6 / 10 to COGECO COMMUNICATIONS INC (CCA.CA). This can be considered as Fairly Valued.
How profitable is COGECO COMMUNICATIONS INC (CCA.CA) stock?
COGECO COMMUNICATIONS INC (CCA.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of COGECO COMMUNICATIONS INC (CCA.CA) stock?
The Price/Earnings (PE) ratio for COGECO COMMUNICATIONS INC (CCA.CA) is 9.06 and the Price/Book (PB) ratio is 0.87.
How sustainable is the dividend of COGECO COMMUNICATIONS INC (CCA.CA) stock?
The dividend rating of COGECO COMMUNICATIONS INC (CCA.CA) is 7 / 10 and the dividend payout ratio is 50.68%.