COGECO INC (CGO.CA) Stock Fundamental Analysis
TSX:CGO - Toronto Stock Exchange - CA19238T1003 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to CGO. CGO was compared to 30 industry peers in the Diversified Telecommunication Services industry. While CGO has a great profitability rating, there are quite some concerns on its financial health. CGO is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CGO had positive earnings in the past year.
CGO had a positive operating cash flow in the past year.
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 (0.84%) than 86.67% of its industry peers.
CGO has a Return On Equity of 9.96%. This is amongst the best in the industry. CGO outperforms 90.00% of its industry peers.
With an excellent Return On Invested Capital value of 6.65%, CGO belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CGO 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
With an excellent Profit Margin value of 2.81%, CGO belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
CGO's Profit Margin has declined in the last couple of years.
CGO's Operating Margin of 24.62% is amongst the best of the industry. CGO outperforms 86.67% of its industry peers.
CGO's Operating Margin has been stable in the last couple of years.
The Gross Margin of CGO (65.90%) is worse than 80.00% of its industry peers.
In the last couple of years the Gross Margin of CGO has remained more or less at the same level.
| 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.
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
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.
CGO has a Altman-Z score of 0.62. This is amongst the best in the industry. CGO outperforms 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.
With a Debt to FCF ratio value of 17.08, CGO is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
CGO has a Debt/Equity ratio of 5.62. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 5.62, CGO is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
| 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.
With a Current ratio value of 0.48, CGO is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.48 indicates that CGO may have some problems paying its short term obligations.
CGO has a worse Quick ratio (0.48) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.36% over the past year.
The Earnings Per Share has been decreasing by -1.94% on average over the past years.
The Revenue has been growing slightly by 0.06% in the past 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
Based on estimates for the next years, CGO will show a small growth in Earnings Per Share. The EPS will grow by 6.49% on average per year.
The Revenue is expected to decrease by -0.82% on average over the next years.
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.
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 7.22, which indicates a rather cheap valuation of CGO.
63.33% of the companies in the same industry are cheaper than CGO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.32. CGO is valued rather cheaply when compared to this.
CGO is valuated cheaply with a Price/Forward Earnings ratio of 6.72.
CGO's Price/Forward Earnings ratio is in line with the industry average.
CGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 6.72 |
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.
Based on the Price/Free Cash Flow ratio, CGO is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.69 | ||
| EV/EBITDA | 3.81 |
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)0.63
PEG (5Y)N/A
EPS Next 2Y6.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.62%, CGO is a good candidate for dividend investing.
CGO's Dividend Yield is slightly below the industry average, which is at 6.43.
Compared to an average S&P500 Dividend Yield of 2.40, CGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
5.2 History
On average, the dividend of CGO grows each year by 11.58%, which is quite nice.
CGO has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CGO decreased 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 Owners26.82%
Inst Owner ChangeN/A
Ins Owners2.06%
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 | 5.62% |
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)0%
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%