COGECO COMMUNICATIONS INC (CCA.CA) Stock Fundamental Analysis
TSX:CCA - Toronto Stock Exchange - CA19239C1068 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to CCA. CCA was compared to 30 industry peers in the Diversified Telecommunication Services industry. While CCA belongs to the best of the industry regarding profitability, 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
In the past year CCA was profitable.
In the past year CCA had a positive cash flow from operations.
In the past 5 years CCA has always been profitable.
CCA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CCA's Return On Assets of 3.50% is amongst the best of the industry. CCA outperforms 93.33% of its industry peers.
CCA's Return On Equity of 11.17% is amongst the best of the industry. CCA outperforms 93.33% of its industry peers.
The Return On Invested Capital of CCA (6.91%) 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 6.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 11.17% | ||
| ROIC | 6.91% |
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's Profit Margin of 11.68% is amongst the best of the industry. CCA outperforms 93.33% of its industry peers.
CCA's Profit Margin has declined in the last couple of years.
CCA's Operating Margin of 25.55% is amongst the best of the industry. CCA outperforms 96.67% 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.
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 | 25.55% | ||
| PM (TTM) | 11.68% | ||
| 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.
CCA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CCA has been reduced compared to 5 years ago.
CCA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that CCA is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.05, CCA belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
The Debt to FCF ratio of CCA is 16.96, which is on the high side as it means it would take CCA, 16.96 years of fcf income to pay off all of its debts.
CCA has a Debt to FCF ratio of 16.96. This is in the lower half of the industry: CCA underperforms 76.67% 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.
CCA has a better Debt to Equity ratio (1.48) than 96.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 16.96 | ||
| Altman-Z | 1.05 |
ROIC/WACC1.18
WACC5.86%
2.3 Liquidity
CCA has a Current Ratio of 0.37. This is a bad value and indicates that CCA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.37, CCA is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.37 indicates that CCA may have some problems paying its short term obligations.
CCA's Quick ratio of 0.37 is on the low side compared to the rest of the industry. CCA is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
CCA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.53%.
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.
CCA shows a decrease in Revenue. In the last year, the revenue decreased by -0.07%.
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)-3.53%
EPS 3Y-2.36%
EPS 5Y-1.26%
EPS Q2Q%18.41%
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y5.84%
Revenue growth 5Y5%
Sales Q2Q%-1.2%
3.2 Future
Based on estimates for the next years, CCA will show a small growth in Earnings Per Share. The EPS will grow by 4.02% on average per year.
The Revenue is expected to decrease by -0.21% on average over the next years.
EPS Next Y4.69%
EPS Next 2Y2.02%
EPS Next 3Y4.02%
EPS Next 5YN/A
Revenue Next Year-0.66%
Revenue Next 2Y-0.4%
Revenue Next 3Y-0.21%
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 7.96 indicates a rather cheap valuation of CCA.
Based on the Price/Earnings ratio, CCA is valued a bit more expensive than 70.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CCA to the average of the S&P500 Index (29.63), we can say CCA is valued rather cheaply.
A Price/Forward Earnings ratio of 8.01 indicates a reasonable valuation of CCA.
Based on the Price/Forward Earnings ratio, CCA is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CCA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 8.01 |
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 a bit more expensive than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 5.42 |
4.3 Compensation for Growth
CCA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CCA may justify a higher PE ratio.
PEG (NY)1.7
PEG (5Y)N/A
EPS Next 2Y2.02%
EPS Next 3Y4.02%
5. Dividend
5.1 Amount
CCA has a Yearly Dividend Yield of 5.67%, which is a nice return.
CCA's Dividend Yield is slightly below the industry average, which is at 10.71.
CCA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
5.2 History
On average, the dividend of CCA grows each year by 9.83%, which is quite nice.
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
42.13% of the earnings are spent on dividend by CCA. 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.
DP42.13%
EPS Next 2Y2.02%
EPS Next 3Y4.02%
TSX:CCA (2/21/2025, 7:00:00 PM)
65.17
+0.14 (+0.22%)
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 Cap3.00B
Analysts75.71
Price Target79.71 (22.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
Yearly Dividend3.35
Dividend Growth(5Y)9.83%
DP42.13%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.73%
Min EPS beat(2)0.04%
Max EPS beat(2)15.42%
EPS beat(4)3
Avg EPS beat(4)2.97%
Min EPS beat(4)-17.62%
Max EPS beat(4)15.42%
EPS beat(8)6
Avg EPS beat(8)4.9%
EPS beat(12)9
Avg EPS beat(12)4.75%
EPS beat(16)11
Avg EPS beat(16)3.37%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)-1.25%
Revenue beat(4)0
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-0.09%
Revenue beat(8)0
Avg Revenue beat(8)-1.35%
Revenue beat(12)1
Avg Revenue beat(12)-1.06%
Revenue beat(16)2
Avg Revenue beat(16)-0.98%
PT rev (1m)-1.39%
PT rev (3m)5.97%
EPS NQ rev (1m)-11.69%
EPS NQ rev (3m)-3.71%
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-2.65%
Revenue NQ rev (1m)-1.25%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 8.01 | ||
| P/S | 1.01 | ||
| P/FCF | 10.27 | ||
| P/OCF | 2.59 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.42 |
EPS(TTM)8.19
EY12.57%
EPS(NY)8.14
Fwd EY12.49%
FCF(TTM)6.34
FCFY9.73%
OCF(TTM)25.18
OCFY38.63%
SpS64.57
BVpS67.51
TBVpS-65.03
PEG (NY)1.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 11.17% | ||
| ROCE | 8.3% | ||
| ROIC | 6.91% | ||
| ROICexc | 6.97% | ||
| ROICexgc | 21.31% | ||
| OM | 25.55% | ||
| PM (TTM) | 11.68% | ||
| GM | 74.75% | ||
| FCFM | 9.83% |
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-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 16.96 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 125.39% | ||
| Cap/Sales | 29.17% | ||
| Interest Coverage | 2.87 | ||
| Cash Conversion | 79.88% | ||
| Profit Quality | 84.12% | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.05 |
F-Score6
WACC5.86%
ROIC/WACC1.18
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)-3.53%
EPS 3Y-2.36%
EPS 5Y-1.26%
EPS Q2Q%18.41%
EPS Next Y4.69%
EPS Next 2Y2.02%
EPS Next 3Y4.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y5.84%
Revenue growth 5Y5%
Sales Q2Q%-1.2%
Revenue Next Year-0.66%
Revenue Next 2Y-0.4%
Revenue Next 3Y-0.21%
Revenue Next 5YN/A
EBIT growth 1Y-3.82%
EBIT growth 3Y3.41%
EBIT growth 5Y4.15%
EBIT Next Year71.66%
EBIT Next 3Y20.74%
EBIT Next 5Y11.61%
FCF growth 1Y273.92%
FCF growth 3Y-13.64%
FCF growth 5Y-23.16%
OCF growth 1Y0.84%
OCF growth 3Y4.87%
OCF growth 5Y-6.01%