COGECO INC (CGO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CGO - CA19238T1003 - Common Stock
68.98 CAD
-2.28 (-3.2%)
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. While CGO is still in line with the averages on profitability rating, there are concerns on its financial health. CGO is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year CGO was profitable.
- In the past year CGO had a positive cash flow from operations.
- In the past 5 years CGO has always been profitable.
- In the past 5 years CGO always reported a positive cash flow from operatings.
1.2 Ratios
- CGO has a worse Return On Assets (0.84%) than 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.
- With an excellent Return On Invested Capital value of 6.50%, CGO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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's Profit Margin of 2.80% is on the low side compared to the rest of the industry. CGO is outperformed by 83.33% of its industry peers.
- In the last couple of years the Profit Margin of CGO has declined.
- The Operating Margin of CGO (24.42%) is better than 90.00% of its industry peers.
- In the last couple of years the Operating Margin of CGO has declined.
- 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
- CGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
- 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.
- Looking at the Altman-Z score, with a value of 0.64, CGO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- 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.
- 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.
- 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
WACC5.78%
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.
- 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%.
- Measured over the past 5 years, CGO shows a small growth in Earnings Per Share. The EPS has been growing by 1.95% on average per year.
- Looking at the last year, CGO shows a decrease in Revenue. The Revenue has decreased by -2.74% in the last 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
- The Earnings Per Share is expected to grow by 3.26% on average over the next years.
- 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
- 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
- CGO is valuated cheaply with a Price/Earnings ratio of 7.98.
- CGO's Price/Earnings ratio is a bit more expensive when compared to the industry. CGO is more expensive than 63.33% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. CGO is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 7.34, which indicates a rather cheap valuation of CGO.
- Based on the Price/Forward Earnings ratio, CGO is valued cheaper than 96.67% of the companies in the same industry.
- CGO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 7.34 |
4.2 Price Multiples
- CGO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CGO is cheaper than 100.00% of the companies in the same industry.
- 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 | 1.16 | ||
| EV/EBITDA | 3.66 |
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)0.49
PEG (5Y)4.1
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.
- Compared to an average S&P500 Dividend Yield of 1.82, CGO pays a better dividend.
| 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.
- 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 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.