COGECO COMMUNICATIONS INC (CCA.CA) Stock Fundamental Analysis
TSX:CCA - Toronto Stock Exchange - CA19239C1068 - Common Stock - Currency: CAD
CCA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 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.
CCA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.23%, CCA belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
CCA's Return On Equity of 10.31% is amongst the best of the industry. CCA outperforms 93.33% of its industry peers.
With an excellent Return On Invested Capital value of 6.65%, CCA belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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 Profit Margin of 11.03%. This is amongst the best in the industry. CCA outperforms 93.33% of its industry peers.
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 90.00% 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.
In the last couple of years the Gross Margin of CCA has remained more or less at the same level.
| 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
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.
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 1.04, we must say that CCA is in the distress zone and has some risk of bankruptcy.
CCA's Altman-Z score of 1.04 is amongst the best of the industry. CCA outperforms 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.
CCA's Debt to FCF ratio of 18.25 is on the low side compared to the rest of the industry. CCA is outperformed by 80.00% 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.
The Debt to Equity ratio of CCA (1.48) is better than 96.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 18.25 | ||
| Altman-Z | 1.04 |
ROIC/WACC1.15
WACC5.78%
2.3 Liquidity
A Current Ratio of 0.46 indicates that CCA may have some problems paying its short term obligations.
CCA's Current ratio of 0.46 is on the low side compared to the rest of the industry. CCA is outperformed by 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
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.
The Revenue has been growing slightly by 0.21% in the past year.
The Revenue has been growing slightly by 5.00% on average over the past years.
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
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-0.93%
Revenue Next 2Y-0.88%
Revenue Next 3Y-0.61%
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.
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
The Price/Earnings ratio is 9.32, which indicates a very decent valuation of CCA.
Based on the Price/Earnings ratio, CCA is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
CCA is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.75 indicates a reasonable valuation of CCA.
CCA's Price/Forward 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.
CCA is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 8.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CCA indicates a slightly more expensive valuation: CCA is more expensive than 66.67% of the companies listed in the same industry.
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 | 11.02 | ||
| EV/EBITDA | 5.46 |
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.
CCA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y2.79%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
CCA has a Yearly Dividend Yield of 5.08%, which is a nice return.
Compared to an average industry Dividend Yield of 6.53, CCA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.35, CCA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
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
45.45% of the earnings are spent on dividend by CCA. 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.
DP45.45%
EPS Next 2Y2.79%
EPS Next 3Y3.88%
TSX:CCA (7/11/2025, 7:00:00 PM)
72.26
-0.33 (-0.45%)
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 Cap3.05B
Analysts75.71
Price Target79.97 (10.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
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%
PT rev (3m)0.32%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)-8.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 8.75 | ||
| P/S | 1.03 | ||
| P/FCF | 11.02 | ||
| P/OCF | 2.72 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.46 |
EPS(TTM)7.75
EY10.73%
EPS(NY)8.26
Fwd EY11.43%
FCF(TTM)6.56
FCFY9.07%
OCF(TTM)26.61
OCFY36.83%
SpS70.25
BVpS75.15
TBVpS-71.71
PEG (NY)2.16
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
WACC5.78%
ROIC/WACC1.15
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 5Y7.67%
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 5Y0.34%
EBIT growth 1Y-3.4%
EBIT growth 3Y3.41%
EBIT growth 5Y4.15%
EBIT Next Year72.84%
EBIT Next 3Y19.9%
EBIT Next 5Y11.53%
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%