COGECO INC (CGO.CA) Stock Fundamental Analysis
TSX:CGO - Toronto Stock Exchange - CA19238T1003 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to CGO. CGO was compared to 30 industry peers in the Diversified Telecommunication Services industry. CGO scores excellent on profitability, 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
CGO had positive earnings in the past year.
CGO had a positive operating cash flow in the past year.
Each year in the past 5 years CGO has been profitable.
CGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.92%, CGO belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Return On Equity of CGO (10.90%) is better than 90.00% of its industry peers.
With an excellent Return On Invested Capital value of 6.92%, CGO belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
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 6.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 10.9% | ||
| ROIC | 6.92% |
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 3.00% is amongst the best of the industry. CGO outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of CGO has declined.
CGO has a Operating Margin of 24.96%. This is amongst the best in the industry. CGO outperforms 93.33% of its industry peers.
CGO's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 65.81%, CGO is doing worse than 80.00% of the companies in the same industry.
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 | 24.96% | ||
| PM (TTM) | 3% | ||
| GM | 65.81% |
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.
The number of shares outstanding for CGO has been reduced compared to 1 year ago.
Compared to 5 years ago, CGO has less shares outstanding
Compared to 1 year ago, CGO has an improved debt to assets ratio.
2.2 Solvency
CGO has an Altman-Z score of 0.63. This is a bad value and indicates that CGO is not financially healthy and even has some risk of bankruptcy.
CGO has a better Altman-Z score (0.63) than 80.00% of its industry peers.
CGO has a debt to FCF ratio of 17.84. This is a negative value and a sign of low solvency as CGO would need 17.84 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.84, CGO is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
CGO has a Debt/Equity ratio of 5.64. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CGO (5.64) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.64 | ||
| Debt/FCF | 17.84 | ||
| Altman-Z | 0.63 |
ROIC/WACC1.27
WACC5.45%
2.3 Liquidity
A Current Ratio of 0.40 indicates that CGO may have some problems paying its short term obligations.
CGO's Current ratio of 0.40 is on the low side compared to the rest of the industry. CGO is outperformed by 86.67% of its industry peers.
A Quick Ratio of 0.40 indicates that CGO may have some problems paying its short term obligations.
CGO has a worse Quick ratio (0.40) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
CGO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.97%.
The Earnings Per Share has been decreasing by -1.94% on average over the past years.
The Revenue has decreased by -0.16% in the past year.
The Revenue has been growing slightly by 4.69% on average over the past years.
EPS 1Y (TTM)7.97%
EPS 3Y-1.75%
EPS 5Y-1.94%
EPS Q2Q%39.82%
Revenue 1Y (TTM)-0.16%
Revenue growth 3Y5.69%
Revenue growth 5Y4.69%
Sales Q2Q%-1.44%
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.
Based on estimates for the next years, CGO will show a decrease in Revenue. The Revenue will decrease by -0.82% on average per year.
EPS Next Y6.37%
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
With a Price/Earnings ratio of 6.39, the valuation of CGO can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CGO indicates a slightly more expensive valuation: CGO is more expensive than 63.33% of the companies listed in the same industry.
CGO is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.22, the valuation of CGO can be described as very cheap.
The rest of the industry has a similar Price/Forward Earnings ratio as CGO.
CGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.39 | ||
| Fwd PE | 6.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CGO is valued 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 | 1.68 | ||
| EV/EBITDA | 3.77 |
4.3 Compensation for Growth
CGO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CGO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y6.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.31%, CGO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 10.35, CGO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.33, CGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
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
35.70% of the earnings are spent on dividend by CGO. This is a low number and sustainable payout ratio.
The dividend of CGO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.7%
EPS Next 2Y6.49%
EPS Next 3YN/A
TSX:CGO (3/7/2025, 7:00:00 PM)
59.77
+1.36 (+2.33%)
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 Cap480.55M
Analysts76.67
Price Target86.7 (45.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
Yearly Dividend2.96
Dividend Growth(5Y)11.58%
DP35.7%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.1%
Min EPS beat(2)-12.43%
Max EPS beat(2)6.23%
EPS beat(4)1
Avg EPS beat(4)-13.57%
Min EPS beat(4)-30.59%
Max EPS beat(4)6.23%
EPS beat(8)3
Avg EPS beat(8)-6.82%
EPS beat(12)5
Avg EPS beat(12)-3.42%
EPS beat(16)6
Avg EPS beat(16)-3.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-1%
Revenue beat(4)1
Avg Revenue beat(4)-0.85%
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)-0.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-29.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.72%
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 | 6.39 | ||
| Fwd PE | 6.22 | ||
| P/S | 0.16 | ||
| P/FCF | 1.68 | ||
| P/OCF | 0.42 | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.77 |
EPS(TTM)9.35
EY15.64%
EPS(NY)9.61
Fwd EY16.07%
FCF(TTM)35.62
FCFY59.6%
OCF(TTM)143.89
OCFY240.74%
SpS380.94
BVpS105.03
TBVpS-655.79
PEG (NY)1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 10.9% | ||
| ROCE | 8.3% | ||
| ROIC | 6.92% | ||
| ROICexc | 6.98% | ||
| ROICexgc | 21.17% | ||
| OM | 24.96% | ||
| PM (TTM) | 3% | ||
| GM | 65.81% | ||
| FCFM | 9.35% |
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-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.64 | ||
| Debt/FCF | 17.84 | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 125.2% | ||
| Cap/Sales | 28.42% | ||
| Interest Coverage | 2.79 | ||
| Cash Conversion | 79.25% | ||
| Profit Quality | 311.27% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 0.63 |
F-Score7
WACC5.45%
ROIC/WACC1.27
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)7.97%
EPS 3Y-1.75%
EPS 5Y-1.94%
EPS Q2Q%39.82%
EPS Next Y6.37%
EPS Next 2Y6.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.16%
Revenue growth 3Y5.69%
Revenue growth 5Y4.69%
Sales Q2Q%-1.44%
Revenue Next Year-1.1%
Revenue Next 2Y-0.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.95%
EBIT growth 3Y3.01%
EBIT growth 5Y3.68%
EBIT Next Year89.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y268.49%
FCF growth 3Y-9.69%
FCF growth 5Y-23.13%
OCF growth 1Y0.17%
OCF growth 3Y4.8%
OCF growth 5Y-6.1%