COGECO INC (CGO.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CGO • CA19238T1003
66.48 CAD
-0.66 (-0.98%)
Last: Jan 29, 2026, 07:00 PM
Taking everything into account, CGO scores 4 out of 10 in our fundamental rating. CGO was compared to 30 industry peers in the Diversified Telecommunication Services industry. While CGO is still in line with the averages on profitability rating, there are concerns on its financial health. CGO has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year CGO was profitable.
- 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
- The Return On Assets of CGO (0.84%) is worse than 83.33% of its industry peers.
- CGO's Return On Equity of 9.39% is on the low side compared to the rest of the industry. CGO is outperformed by 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.
- CGO had an Average Return On Invested Capital over the past 3 years of 6.93%. This 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.
- CGO's Profit Margin has declined in the last couple of years.
- The Operating Margin of CGO (24.42%) is better than 90.00% of its industry peers.
- CGO's Operating Margin has declined in the last couple of years.
- CGO's Gross Margin of 65.75% is on the low side compared to the rest of the industry. CGO is outperformed by 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 | 24.42% | ||
| 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
- 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.
- CGO has less shares outstanding than it did 5 years ago.
- CGO has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.64, we must say that CGO is in the distress zone and has some risk of bankruptcy.
- CGO's Altman-Z score of 0.64 is fine compared to the rest of the industry. CGO outperforms 80.00% of its industry peers.
- CGO has a debt to FCF ratio of 10.04. This is a negative value and a sign of low solvency as CGO would need 10.04 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 10.04, CGO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- A Debt/Equity ratio of 5.12 is on the high side and indicates that CGO has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 5.12, CGO is doing worse than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.12 | ||
| Debt/FCF | 10.04 | ||
| Altman-Z | 0.64 |
ROIC/WACC1.13
WACC5.75%
2.3 Liquidity
- CGO has a Current Ratio of 0.44. This is a bad value and indicates that CGO is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.44, CGO is doing worse than 86.67% of the companies in the same industry.
- CGO has a Quick Ratio of 0.44. This is a bad value and indicates that CGO is not financially healthy enough and could expect problems in meeting its short term obligations.
- CGO's Quick ratio of 0.44 is on the low side compared to the rest of the industry. CGO is outperformed by 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
- The earnings per share for CGO have decreased by -7.59% in the last year.
- CGO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.95% yearly.
- The Revenue has decreased by -2.74% in the past year.
- CGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.94% yearly.
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.
- Based on estimates for the next years, CGO will show a decrease in Revenue. The Revenue will decrease by -2.52% on average per year.
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
- 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.
- 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
- The Price/Earnings ratio is 7.69, which indicates a rather cheap valuation of CGO.
- 60.00% of the companies in the same industry are cheaper than CGO, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of CGO to the average of the S&P500 Index (28.30), we can say CGO is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.08 indicates a rather cheap valuation of CGO.
- Based on the Price/Forward Earnings ratio, CGO is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. CGO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 7.08 |
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.
- 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 | 1.12 | ||
| EV/EBITDA | 3.65 |
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)0.47
PEG (5Y)3.95
EPS Next 2Y3.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.55%, CGO is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.16, CGO is paying slightly less dividend.
- CGO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
5.2 History
- The dividend of CGO is nicely growing with an annual growth rate of 14.01%!
- CGO has been paying a dividend for at least 10 years, so it has 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
- CGO pays out 42.37% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of CGO is growing, but the earnings are growing slower. 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 8 / 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.