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. CCA scores excellent on profitability, but there are 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
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
The Return On Assets of CCA (3.23%) is better than 93.33% of its industry peers.
The Return On Equity of CCA (10.31%) is better than 93.33% of its industry peers.
The Return On Invested Capital of CCA (6.65%) is better than 90.00% 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 5.41%.
| 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
CCA has a better Profit Margin (11.03%) than 93.33% of its industry peers.
CCA's Profit Margin has declined in the last couple of years.
The Operating Margin of CCA (25.21%) is better than 90.00% of its industry peers.
CCA's Operating Margin has been stable in the last couple of years.
The Gross Margin of CCA (74.75%) is better 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 | 25.21% | ||
| 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
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.
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 1.03, 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.
CCA has a debt to FCF ratio of 18.25. This is a negative value and a sign of low solvency as CCA would need 18.25 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 18.25, CCA is doing worse than 80.00% of the companies in the same industry.
A Debt/Equity ratio of 1.48 is on the high side and indicates that CCA has dependencies on debt financing.
CCA has a Debt to Equity ratio of 1.48. This is amongst the best in the industry. CCA outperforms 96.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 18.25 | ||
| Altman-Z | 1.03 |
ROIC/WACC1.17
WACC5.7%
2.3 Liquidity
A Current Ratio of 0.46 indicates that CCA may have some problems paying its short term obligations.
CCA has a Current ratio of 0.46. This is amonst the worse of the industry: CCA underperforms 90.00% of its industry peers.
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.
CCA has a worse Quick ratio (0.46) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for CCA have decreased by -8.82% 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.
The Revenue has been growing slightly by 0.21% in the past 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)-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
CCA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.73% yearly.
CCA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.40% yearly.
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
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 8.83 indicates a reasonable valuation of CCA.
70.00% of the companies in the same industry are cheaper than CCA, based on the Price/Earnings ratio.
CCA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
CCA is valuated reasonably with a Price/Forward Earnings ratio of 8.28.
66.67% of the companies in the same industry are cheaper than CCA, based on the Price/Forward Earnings ratio.
CCA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.83 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CCA is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
80.00% 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 | 10.44 | ||
| EV/EBITDA | 5.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CCA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)N/A
EPS Next 2Y2.79%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.38%, CCA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.68, CCA is paying slightly less dividend.
CCA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
5.2 History
The dividend of CCA is nicely growing with an annual growth rate of 9.83%!
CCA has paid a dividend for at least 10 years, which is 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 45.45% 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.
DP45.45%
EPS Next 2Y2.79%
EPS Next 3Y3.88%
TSX:CCA (5/22/2025, 7:00:00 PM)
68.43
+0.25 (+0.37%)
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 Cap2.89B
Analysts75.71
Price Target79.97 (16.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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)0.32%
PT rev (3m)0.32%
EPS NQ rev (1m)-2.53%
EPS NQ rev (3m)-7.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.83 | ||
| Fwd PE | 8.28 | ||
| P/S | 0.97 | ||
| P/FCF | 10.44 | ||
| P/OCF | 2.57 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.35 |
EPS(TTM)7.75
EY11.33%
EPS(NY)8.26
Fwd EY12.07%
FCF(TTM)6.56
FCFY9.58%
OCF(TTM)26.61
OCFY38.89%
SpS70.25
BVpS75.15
TBVpS-71.71
PEG (NY)2.05
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 | 1.03 |
F-Score5
WACC5.7%
ROIC/WACC1.17
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%