COGECO COMMUNICATIONS INC (CCA.CA) Stock Fundamental Analysis
TSX:CCA - Toronto Stock Exchange - CA19239C1068 - Common Stock - Currency: CAD
Taking everything into account, CCA scores 5 out of 10 in our fundamental rating. 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 is valued correctly, but it does not seem to be growing. Finally CCA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CCA was profitable.
CCA had a positive operating cash flow in the past year.
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.
Looking at the Return On Equity, with a value of 10.31%, CCA belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
CCA's Return On Invested Capital of 6.65% is amongst the best of the industry. CCA outperforms 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 5.52%.
| 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
Looking at the Profit Margin, with a value of 11.03%, CCA belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
In the last couple of years the Profit Margin of CCA has declined.
Looking at the Operating Margin, with a value of 25.21%, CCA belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CCA has remained more or less at the same level.
CCA's Gross Margin of 74.75% is amongst the best of the industry. CCA outperforms 96.67% of its industry peers.
CCA's Gross Margin has been stable in the last couple of years.
| 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
CCA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CCA has been reduced compared to 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 1.03, we must say that CCA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CCA (1.03) is better than 93.33% of its industry peers.
The Debt to FCF ratio of CCA is 18.25, which is on the high side as it means it would take CCA, 18.25 years of fcf income to pay off all of its debts.
CCA has a worse Debt to FCF ratio (18.25) than 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.
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 | 18.25 | ||
| Altman-Z | 1.03 |
ROIC/WACC1.17
WACC5.68%
2.3 Liquidity
CCA has a Current 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'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.
A Quick Ratio of 0.46 indicates that CCA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.46, CCA is doing worse than 90.00% of the companies in the same industry.
| 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.
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)-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 7.73% on average over the next years.
Based on estimates for the next years, CCA will show a small growth in Revenue. The Revenue will grow by 0.40% on average per year.
EPS Next Y4.31%
EPS Next 2Y2.79%
EPS Next 3Y3.88%
EPS Next 5Y7.73%
Revenue Next Year-0.66%
Revenue Next 2Y-0.4%
Revenue Next 3Y-0.21%
Revenue Next 5Y0.4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 8.34, 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 28.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.83 indicates a rather cheap valuation of CCA.
66.67% of the companies in the same industry are cheaper than CCA, based on the Price/Forward Earnings ratio.
CCA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
CCA's Enterprise Value to EBITDA 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.
Based on the Price/Free Cash Flow ratio, CCA is valued more expensive than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.72 | ||
| EV/EBITDA | 5.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CCA may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)N/A
EPS Next 2Y2.79%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.61%, CCA is a good candidate for dividend investing.
CCA's Dividend Yield is slightly below the industry average, which is at 11.62.
CCA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
5.2 History
On average, the dividend of CCA grows each year by 9.83%, which is quite nice.
CCA has paid a dividend for at least 10 years, which is a reliable track record.
CCA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.83%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
CCA pays out 45.45% of its income as dividend. 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 (4/24/2025, 7:00:00 PM)
64.66
+0.29 (+0.45%)
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 Cap2.97B
Analysts75.71
Price Target79.71 (23.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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)-1.39%
EPS NQ rev (1m)-5.58%
EPS NQ rev (3m)-7.96%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 7.83 | ||
| P/S | 1 | ||
| P/FCF | 10.72 | ||
| P/OCF | 2.64 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.4 |
EPS(TTM)7.75
EY11.99%
EPS(NY)8.26
Fwd EY12.78%
FCF(TTM)6.03
FCFY9.33%
OCF(TTM)24.48
OCFY37.85%
SpS64.61
BVpS69.12
TBVpS-65.96
PEG (NY)1.94
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 | 1.03 |
F-Score5
WACC5.68%
ROIC/WACC1.17
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 5Y7.73%
Revenue 1Y (TTM)0.21%
Revenue growth 3Y5.84%
Revenue growth 5Y5%
Sales Q2Q%0.26%
Revenue Next Year-0.66%
Revenue Next 2Y-0.4%
Revenue Next 3Y-0.21%
Revenue Next 5Y0.4%
EBIT growth 1Y-3.4%
EBIT growth 3Y3.41%
EBIT growth 5Y4.15%
EBIT Next Year71.54%
EBIT Next 3Y20.42%
EBIT Next 5Y11.4%
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%