COGECO INC (CGO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CGO - CA19238T1003 - Common Stock
71.26 CAD
-0.88 (-1.22%)
CGO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- CGO had positive earnings in the past year.
- In the past year CGO had a positive cash flow from operations.
- 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's Return On Assets of 0.84% is on the low side compared to the rest of the industry. CGO is outperformed by 83.33% of its industry peers.
- Looking at the Return On Equity, with a value of 9.39%, CGO is doing worse than 80.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.50%, CGO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- 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 worse Profit Margin (2.80%) than 83.33% of its industry peers.
- In the last couple of years the Profit Margin of CGO has declined.
- CGO has a better Operating Margin (24.42%) 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
- 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
- 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
- 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.
- 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.
- The Debt to FCF ratio of CGO (10.04) is better than 90.00% of its industry peers.
- CGO has a Debt/Equity ratio of 5.12. This is a high value indicating a heavy dependency on external financing.
- CGO's Debt to Equity ratio of 5.12 is on the low side compared to the rest of the industry. CGO is outperformed by 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
WACC5.81%
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.
- 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 has a Quick ratio of 0.44. This is amonst the worse of the industry: CGO underperforms 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.
- The Revenue has been growing slightly by 3.94% on average over the past years.
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
- The Earnings Per Share is expected to grow by 3.26% on average over the next years.
- CGO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.52% yearly.
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.
- 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
- With a Price/Earnings ratio of 8.25, the valuation of CGO can be described as very reasonable.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, CGO is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 7.59, the valuation of CGO can be described as very cheap.
- Based on the Price/Forward Earnings ratio, CGO is valued cheaper than 86.67% of the companies in the same industry.
- CGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 7.59 |
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.
- CGO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CGO is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.2 | ||
| EV/EBITDA | 3.68 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.5
PEG (5Y)4.23
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.
- CGO's Dividend Yield is slightly below the industry average, which is at 5.16.
- 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
- 42.37% of the earnings are spent on dividend by CGO. 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 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.