COGECO INC (CGO.CA) Stock Fundamental Analysis
Canada - TSX:CGO - CA19238T1003 - Common Stock
60.22 CAD
-0.63 (-1.04%)
We assign a fundamental rating of 6 out of 10 to CGO. CGO was compared to 31 industry peers in the Diversified Telecommunication Services industry. While CGO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CGO is valued quite cheap, but it does not seem to be growing. CGO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CGO was profitable.
In the past year CGO had a positive cash flow from operations.
In the past 5 years CGO has always been profitable.
CGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CGO has a better Return On Assets (0.88%) than 90.00% of its industry peers.
With an excellent Return On Equity value of 10.28%, CGO belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
CGO has a better Return On Invested Capital (6.76%) than 96.67% of its industry peers.
CGO had an Average Return On Invested Capital over the past 3 years of 7.38%. This is in line with the industry average of 5.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 10.28% | ||
| ROIC | 6.76% |
ROA(3y)1.09%
ROA(5y)1.4%
ROE(3y)11.93%
ROE(5y)13.99%
ROIC(3y)7.38%
ROIC(5y)7.84%
1.3 Margins
With an excellent Profit Margin value of 2.88%, CGO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
CGO's Profit Margin has declined in the last couple of years.
CGO has a Operating Margin of 24.25%. This is amongst the best in the industry. CGO outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of CGO has remained more or less at the same level.
CGO has a worse Gross Margin (65.77%) than 83.33% of its industry peers.
CGO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.25% | ||
| PM (TTM) | 2.88% | ||
| GM | 65.77% |
OM growth 3Y-2.53%
OM growth 5Y-0.97%
PM growth 3Y-16.72%
PM growth 5Y-11.69%
GM growth 3Y0.22%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CGO is still creating some value.
CGO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CGO has been reduced compared to 5 years ago.
Compared to 1 year ago, CGO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that CGO is in the distress zone and has some risk of bankruptcy.
CGO has a better Altman-Z score (0.64) than 86.67% of its industry peers.
CGO has a debt to FCF ratio of 8.56. This is a slightly negative value and a sign of low solvency as CGO would need 8.56 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 8.56, CGO belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
CGO has a Debt/Equity ratio of 5.38. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CGO (5.38) is worse than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 8.56 | ||
| Altman-Z | 0.64 |
ROIC/WACC1.24
WACC5.47%
2.3 Liquidity
CGO has a Current Ratio of 0.52. This is a bad value and indicates that CGO is not financially healthy enough and could expect problems in meeting its short term obligations.
CGO has a worse Current ratio (0.52) than 83.33% of its industry peers.
A Quick Ratio of 0.52 indicates that CGO may have some problems paying its short term obligations.
CGO has a Quick ratio of 0.52. This is amonst the worse of the industry: CGO underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
CGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.86%, which is quite good.
CGO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.94% yearly.
CGO shows a decrease in Revenue. In the last year, the revenue decreased by -0.87%.
CGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.69% yearly.
EPS 1Y (TTM)8.86%
EPS 3Y-1.75%
EPS 5Y-1.94%
EPS Q2Q%8.12%
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y5.69%
Revenue growth 5Y4.69%
Sales Q2Q%-2.41%
3.2 Future
The Earnings Per Share is expected to grow by 5.65% on average over the next years.
Based on estimates for the next years, CGO will show a decrease in Revenue. The Revenue will decrease by -1.95% on average per year.
EPS Next Y10.78%
EPS Next 2Y5.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.64%
Revenue Next 2Y-1.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 6.62 indicates a rather cheap valuation of CGO.
Based on the Price/Earnings ratio, CGO is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CGO to the average of the S&P500 Index (27.86), we can say CGO is valued rather cheaply.
The Price/Forward Earnings ratio is 6.37, which indicates a rather cheap valuation of CGO.
Based on the Price/Forward Earnings ratio, CGO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CGO to the average of the S&P500 Index (23.32), we can say CGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 6.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CGO indicates a rather cheap valuation: CGO is cheaper than 100.00% of the companies listed in the same industry.
CGO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CGO is cheaper than 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.84 | ||
| EV/EBITDA | 3.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CGO may justify a higher PE ratio.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y5.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CGO has a Yearly Dividend Yield of 6.06%, which is a nice return.
Compared to an average industry Dividend Yield of 4.61, CGO pays a better dividend. On top of this CGO pays more dividend than 96.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, CGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
5.2 History
The dividend of CGO is nicely growing with an annual growth rate of 11.58%!
CGO has paid a dividend for at least 10 years, which is a reliable track record.
CGO has decreased its dividend recently.
Dividend Growth(5Y)11.58%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CGO pays out 38.82% of its income as dividend. This is a sustainable payout ratio.
CGO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.82%
EPS Next 2Y5.65%
EPS Next 3YN/A
TSX:CGO (10/3/2025, 7:00:00 PM)
60.22
-0.63 (-1.04%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners29.17%
Inst Owner ChangeN/A
Ins Owners2.06%
Ins Owner ChangeN/A
Market Cap484.17M
Analysts76.67
Price Target91.29 (51.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
Yearly Dividend2.96
Dividend Growth(5Y)11.58%
DP38.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.39%
Min EPS beat(2)-8.31%
Max EPS beat(2)31.08%
EPS beat(4)2
Avg EPS beat(4)4.14%
Min EPS beat(4)-12.43%
Max EPS beat(4)31.08%
EPS beat(8)3
Avg EPS beat(8)-4.8%
EPS beat(12)6
Avg EPS beat(12)-1.39%
EPS beat(16)6
Avg EPS beat(16)-2.51%
Revenue beat(2)1
Avg Revenue beat(2)-0.72%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)0.16%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)0.16%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 6.37 | ||
| P/S | 0.16 | ||
| P/FCF | 0.84 | ||
| P/OCF | 0.41 | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.53 |
EPS(TTM)9.09
EY15.09%
EPS(NY)9.45
Fwd EY15.7%
FCF(TTM)71.73
FCFY119.11%
OCF(TTM)147.62
OCFY245.13%
SpS378.78
BVpS106.19
TBVpS-642.21
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 10.28% | ||
| ROCE | 8.12% | ||
| ROIC | 6.76% | ||
| ROICexc | 6.95% | ||
| ROICexgc | 21.67% | ||
| OM | 24.25% | ||
| PM (TTM) | 2.88% | ||
| GM | 65.77% | ||
| FCFM | 18.94% |
ROA(3y)1.09%
ROA(5y)1.4%
ROE(3y)11.93%
ROE(5y)13.99%
ROIC(3y)7.38%
ROIC(5y)7.84%
ROICexc(3y)7.57%
ROICexc(5y)8.16%
ROICexgc(3y)23.03%
ROICexgc(5y)25.3%
ROCE(3y)8.87%
ROCE(5y)9.42%
ROICexcg growth 3Y-7.94%
ROICexcg growth 5Y-5.17%
ROICexc growth 3Y-7.6%
ROICexc growth 5Y-3.5%
OM growth 3Y-2.53%
OM growth 5Y-0.97%
PM growth 3Y-16.72%
PM growth 5Y-11.69%
GM growth 3Y0.22%
GM growth 5YN/A
F-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.38 | ||
| Debt/FCF | 8.56 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 83.73% | ||
| Cap/Sales | 20.03% | ||
| Interest Coverage | 2.69 | ||
| Cash Conversion | 80.9% | ||
| Profit Quality | 657.35% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.64 |
F-Score6
WACC5.47%
ROIC/WACC1.24
Cap/Depr(3y)141.22%
Cap/Depr(5y)127.28%
Cap/Sales(3y)29.72%
Cap/Sales(5y)26.36%
Profit Quality(3y)219.09%
Profit Quality(5y)263.24%
High Growth Momentum
Growth
EPS 1Y (TTM)8.86%
EPS 3Y-1.75%
EPS 5Y-1.94%
EPS Q2Q%8.12%
EPS Next Y10.78%
EPS Next 2Y5.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y5.69%
Revenue growth 5Y4.69%
Sales Q2Q%-2.41%
Revenue Next Year-1.64%
Revenue Next 2Y-1.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.77%
EBIT growth 3Y3.01%
EBIT growth 5Y3.68%
EBIT Next Year89.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y439.88%
FCF growth 3Y-9.69%
FCF growth 5Y-23.13%
OCF growth 1Y17.45%
OCF growth 3Y4.8%
OCF growth 5Y-6.1%