COGECO INC (CGO.CA) Stock Fundamental Analysis
TSX:CGO - Toronto Stock Exchange - CA19238T1003 - Common Stock - Currency: CAD
Overall CGO gets a fundamental rating of 5 out of 10. We evaluated CGO against 30 industry peers in the Diversified Telecommunication Services industry. CGO has an excellent profitability rating, but there are concerns on its financial health. CGO is valued quite cheap, but it does not seem to be growing.
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.
CGO had positive earnings in each of the past 5 years.
CGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CGO has a better Return On Assets (0.84%) than 86.67% of its industry peers.
Looking at the Return On Equity, with a value of 9.96%, CGO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
CGO has a better Return On Invested Capital (6.65%) than 93.33% 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 5.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 9.96% | ||
| ROIC | 6.65% |
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
CGO's Profit Margin of 2.81% is amongst the best of the industry. CGO outperforms 86.67% of its industry peers.
In the last couple of years the Profit Margin of CGO has declined.
With an excellent Operating Margin value of 24.62%, CGO belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CGO has remained more or less at the same level.
CGO's Gross Margin of 65.90% is on the low side compared to the rest of the industry. CGO is outperformed by 80.00% of its industry peers.
CGO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.62% | ||
| PM (TTM) | 2.81% | ||
| GM | 65.9% |
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
CGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CGO has less shares outstanding than it did 1 year ago.
CGO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CGO has been reduced compared to a year ago.
2.2 Solvency
CGO has an Altman-Z score of 0.62. This is a bad value and indicates that CGO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CGO (0.62) is better than 83.33% of its industry peers.
The Debt to FCF ratio of CGO is 17.08, which is on the high side as it means it would take CGO, 17.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CGO (17.08) is worse than 76.67% of its industry peers.
A Debt/Equity ratio of 5.62 is on the high side and indicates that CGO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.62, CGO is doing worse than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.62 | ||
| Debt/FCF | 17.08 | ||
| Altman-Z | 0.62 |
ROIC/WACC1.21
WACC5.5%
2.3 Liquidity
A Current Ratio of 0.48 indicates that CGO may have some problems paying its short term obligations.
CGO has a Current ratio of 0.48. This is amonst the worse of the industry: CGO underperforms 86.67% of its industry peers.
CGO has a Quick Ratio of 0.48. This is a bad value and indicates that CGO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CGO (0.48) is worse than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
CGO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.36%.
Measured over the past years, CGO shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.94% on average per year.
Looking at the last year, CGO shows a small growth in Revenue. The Revenue has grown by 0.06% in the last year.
CGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.69% yearly.
EPS 1Y (TTM)1.36%
EPS 3Y-1.75%
EPS 5Y-1.94%
EPS Q2Q%-18.26%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y5.69%
Revenue growth 5Y4.69%
Sales Q2Q%0.18%
3.2 Future
The Earnings Per Share is expected to grow by 6.49% on average over the next years.
CGO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.82% yearly.
EPS Next Y11.49%
EPS Next 2Y6.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.1%
Revenue Next 2Y-0.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 7.22 indicates a rather cheap valuation of CGO.
Based on the Price/Earnings ratio, CGO is valued a bit more expensive than 63.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of CGO to the average of the S&P500 Index (26.31), we can say CGO is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.72, the valuation of CGO can be described as very cheap.
CGO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, CGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 6.72 |
4.2 Price Multiples
CGO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CGO is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CGO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.69 | ||
| EV/EBITDA | 3.81 |
4.3 Compensation for Growth
CGO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CGO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y6.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.58%, CGO is a good candidate for dividend investing.
CGO's Dividend Yield is slightly below the industry average, which is at 5.70.
Compared to an average S&P500 Dividend Yield of 2.39, CGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
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 38.79% of its income as dividend. This is a sustainable payout ratio.
The dividend of CGO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.79%
EPS Next 2Y6.49%
EPS Next 3YN/A
TSX:CGO (6/13/2025, 7:00:00 PM)
64.5
-1.18 (-1.8%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners21.48%
Inst Owner ChangeN/A
Ins Owners2.03%
Ins Owner ChangeN/A
Market Cap518.58M
Analysts76.67
Price Target91.29 (41.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
Yearly Dividend2.96
Dividend Growth(5Y)11.58%
DP38.79%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.66%
Min EPS beat(2)6.23%
Max EPS beat(2)31.08%
EPS beat(4)2
Avg EPS beat(4)-1.43%
Min EPS beat(4)-30.59%
Max EPS beat(4)31.08%
EPS beat(8)4
Avg EPS beat(8)-2.59%
EPS beat(12)6
Avg EPS beat(12)-0.82%
EPS beat(16)6
Avg EPS beat(16)-2.2%
Revenue beat(2)1
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)0.16%
Revenue beat(4)2
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)0.41%
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)5.92%
PT rev (3m)5.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)4.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 6.72 | ||
| P/S | 0.17 | ||
| P/FCF | 1.69 | ||
| P/OCF | 0.46 | ||
| P/B | 0.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.81 |
EPS(TTM)8.93
EY13.84%
EPS(NY)9.61
Fwd EY14.89%
FCF(TTM)38.06
FCFY59.01%
OCF(TTM)139.38
OCFY216.09%
SpS381.11
BVpS107.58
TBVpS-667.75
PEG (NY)0.63
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 9.96% | ||
| ROCE | 8% | ||
| ROIC | 6.65% | ||
| ROICexc | 6.75% | ||
| ROICexgc | 20.41% | ||
| OM | 24.62% | ||
| PM (TTM) | 2.81% | ||
| GM | 65.9% | ||
| FCFM | 9.99% |
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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.62 | ||
| Debt/FCF | 17.08 | ||
| Debt/EBITDA | 3.31 | ||
| Cap/Depr | 113.98% | ||
| Cap/Sales | 26.58% | ||
| Interest Coverage | 2.82 | ||
| Cash Conversion | 76.28% | ||
| Profit Quality | 355.06% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 0.62 |
F-Score6
WACC5.5%
ROIC/WACC1.21
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)1.36%
EPS 3Y-1.75%
EPS 5Y-1.94%
EPS Q2Q%-18.26%
EPS Next Y11.49%
EPS Next 2Y6.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.06%
Revenue growth 3Y5.69%
Revenue growth 5Y4.69%
Sales Q2Q%0.18%
Revenue Next Year-1.1%
Revenue Next 2Y-0.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.62%
EBIT growth 3Y3.01%
EBIT growth 5Y3.68%
EBIT Next Year90.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y45.26%
FCF growth 3Y-9.69%
FCF growth 5Y-23.13%
OCF growth 1Y3.47%
OCF growth 3Y4.8%
OCF growth 5Y-6.1%