COGECO INC (CGO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CGO - CA19238T1003 - Common Stock
72.14 CAD
+1.02 (+1.43%)
Overall CGO gets a fundamental rating of 4 out of 10. We evaluated CGO against 30 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of CGO while its profitability can be described as average. 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.
- In the past 5 years CGO always reported a positive cash flow from operatings.
1.2 Ratios
- CGO has a Return On Assets of 0.84%. This is amonst the worse of the industry: CGO underperforms 83.33% of its industry peers.
- CGO has a Return On Equity of 9.39%. This is amonst the worse of the industry: CGO underperforms 80.00% of its industry peers.
- CGO's Return On Invested Capital of 6.50% is amongst the best of the industry. CGO outperforms 90.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CGO is in line with the industry average of 5.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 9.39% | ||
| ROIC | 6.5% |
ROA(3y)0.86%
ROA(5y)1.21%
ROE(3y)9.8%
ROE(5y)12.6%
ROIC(3y)6.93%
ROIC(5y)7.4%
1.3 Margins
- CGO has a Profit Margin of 2.80%. This is amonst the worse of the industry: CGO underperforms 83.33% of its industry peers.
- In the last couple of years the Profit Margin of CGO has declined.
- Looking at the Operating Margin, with a value of 24.42%, CGO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- CGO's Operating Margin has declined in the last couple of years.
- The Gross Margin of CGO (65.75%) is worse than 80.00% of its industry peers.
- CGO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.42% | ||
| PM (TTM) | 2.8% | ||
| GM | 65.75% |
OM growth 3Y-2.19%
OM growth 5Y-1.72%
PM growth 3Y-17.21%
PM growth 5Y-11.38%
GM growth 3Y0.78%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CGO is creating some value.
- Compared to 1 year ago, CGO has less shares outstanding
- 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 0.64. 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 (0.64) than 80.00% of its industry peers.
- The Debt to FCF ratio of CGO is 10.04, which is on the high side as it means it would take CGO, 10.04 years of fcf income to pay off all of its debts.
- CGO's Debt to FCF ratio of 10.04 is amongst the best of the industry. CGO outperforms 90.00% of its industry peers.
- A Debt/Equity ratio of 5.12 is on the high side and indicates that CGO has dependencies on debt financing.
- CGO has a Debt to Equity ratio of 5.12. This is amonst the worse of the industry: CGO underperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.12 | ||
| Debt/FCF | 10.04 | ||
| Altman-Z | 0.64 |
ROIC/WACC1.12
WACC5.82%
2.3 Liquidity
- A Current Ratio of 0.44 indicates that CGO may have some problems paying its short term obligations.
- The Current ratio of CGO (0.44) is worse than 86.67% of its industry peers.
- A Quick Ratio of 0.44 indicates that CGO may have some problems paying its short term obligations.
- With a Quick ratio value of 0.44, CGO is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
- CGO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.59%.
- The Earnings Per Share has been growing slightly by 1.95% on average over the past years.
- The Revenue has decreased by -2.74% in the past year.
- Measured over the past years, CGO shows a small growth in Revenue. The Revenue has been growing by 3.94% on average per year.
EPS 1Y (TTM)-7.59%
EPS 3Y-2.07%
EPS 5Y1.95%
EPS Q2Q%-5.5%
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y0.15%
Revenue growth 5Y3.94%
Sales Q2Q%-3.83%
3.2 Future
- CGO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.26% yearly.
- The Revenue is expected to decrease by -2.52% on average over the next years.
EPS Next Y16.36%
EPS Next 2Y3.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.27%
Revenue Next 2Y-2.52%
Revenue Next 3YN/A
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.
- 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 8.35, which indicates a very decent valuation of CGO.
- Based on the Price/Earnings ratio, CGO is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
- CGO is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 7.68, the valuation of CGO can be described as very cheap.
- CGO's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of CGO to the average of the S&P500 Index (25.98), we can say CGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 7.68 |
4.2 Price Multiples
- 100.00% of the companies in the same industry are more expensive than CGO, based on the Enterprise Value to EBITDA ratio.
- 100.00% of the companies in the same industry are more expensive than CGO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.21 | ||
| EV/EBITDA | 3.68 |
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.
PEG (NY)0.51
PEG (5Y)4.29
EPS Next 2Y3.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- CGO has a Yearly Dividend Yield of 5.55%, which is a nice return.
- CGO's Dividend Yield is slightly below the industry average, which is at 5.16.
- Compared to an average S&P500 Dividend Yield of 1.81, CGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
5.2 History
- On average, the dividend of CGO grows each year by 14.01%, 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)14.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 42.37% of the earnings are spent on dividend by CGO. This is a bit on the high side, but may be sustainable.
- CGO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.37%
EPS Next 2Y3.26%
EPS Next 3YN/A
COGECO INC / CGO.CA FAQ
What is the ChartMill fundamental rating of COGECO INC (CGO.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CGO.CA.
Can you provide the valuation status for COGECO INC?
ChartMill assigns a valuation rating of 7 / 10 to COGECO INC (CGO.CA). This can be considered as Undervalued.
Can you provide the profitability details for COGECO INC?
COGECO INC (CGO.CA) has a profitability rating of 4 / 10.
What is the financial health of COGECO INC (CGO.CA) stock?
The financial health rating of COGECO INC (CGO.CA) is 3 / 10.
What is the expected EPS growth for COGECO INC (CGO.CA) stock?
The Earnings per Share (EPS) of COGECO INC (CGO.CA) is expected to grow by 16.36% in the next year.