COGECO INC (CGO.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CGO - CA19238T1003 - Common Stock
71.12 CAD
+0.4 (+0.57%)
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. CGO has only an average score on both its financial health and profitability. CGO is cheap, but on the other hand it scores bad on growth. Finally CGO also has an excellent dividend rating.
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.
- In the past 5 years CGO has always been profitable.
- Each year in the past 5 years CGO had a positive operating cash flow.
1.2 Ratios
- CGO has a worse Return On Assets (0.87%) than 83.33% of its industry peers.
- Looking at the Return On Equity, with a value of 9.85%, CGO is doing worse than 76.67% of the companies in the same industry.
- The Return On Invested Capital of CGO (6.54%) is better than 93.33% 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 5.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.87% | ||
| ROE | 9.85% | ||
| ROIC | 6.54% |
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
- Looking at the Profit Margin, with a value of 2.82%, CGO is doing worse than 83.33% of the companies in the same industry.
- CGO's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 24.37%, CGO belongs to the best 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.
- CGO's Gross Margin of 65.69% is on the low side compared to the rest of the industry. CGO is outperformed by 80.00% of its industry peers.
- CGO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.37% | ||
| PM (TTM) | 2.82% | ||
| GM | 65.69% |
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.
- CGO has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.66, 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 0.66, CGO belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- The Debt to FCF ratio of CGO is 9.15, which is on the high side as it means it would take CGO, 9.15 years of fcf income to pay off all of its debts.
- CGO's Debt to FCF ratio of 9.15 is amongst the best of the industry. CGO outperforms 93.33% of its industry peers.
- A Debt/Equity ratio of 5.41 is on the high side and indicates that CGO has dependencies on debt financing.
- The Debt to Equity ratio of CGO (5.41) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.41 | ||
| Debt/FCF | 9.15 | ||
| Altman-Z | 0.66 |
ROIC/WACC1.14
WACC5.71%
2.3 Liquidity
- CGO has a Current Ratio of 0.49. 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 Current ratio of 0.49. This is amonst the worse of the industry: CGO underperforms 86.67% of its industry peers.
- CGO has a Quick Ratio of 0.49. 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 worse Quick ratio (0.49) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
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 -2.14% 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)-2.14%
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
- With a Price/Earnings ratio of 8.23, the valuation of CGO can be described as very reasonable.
- Based on the Price/Earnings ratio, CGO is valued a bit more expensive than 63.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, CGO is valued rather cheaply.
- CGO is valuated cheaply with a Price/Forward Earnings ratio of 7.57.
- Based on the Price/Forward Earnings ratio, CGO is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of CGO to the average of the S&P500 Index (24.32), we can say CGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 7.57 |
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 | 1.11 | ||
| EV/EBITDA | 3.58 |
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)0.5
PEG (5Y)4.23
EPS Next 2Y3.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.74%, CGO is a good candidate for dividend investing.
- CGO's Dividend Yield is rather good when compared to the industry average which is at 4.50. CGO pays more dividend than 96.67% of the companies in the same industry.
- 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 | 5.74% |
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.
- CGO has decreased its dividend recently.
Dividend Growth(5Y)14.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- CGO pays out 40.82% 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.
DP40.82%
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 4 / 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.