Cogeco Communications, Inc. (CCA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cogeco Communications, Inc.

Cogeco, Inc.

Quebecor, Inc.

Stingray Group, Inc.

TVA Group, Inc.

Asian Television Network International Ltd.

Why is Cogeco Communications, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.54% and Operating profit at 3.46% over the last 5 years

Flat results in May 25

ROCE(HY) Lowest at 10.72%
NET SALES(Q) Lowest at CAD 730.68 MM
RAW MATERIAL COST(Y) Grown by 5.73% (YoY)

With ROE of 12.52%, it has a very attractive valuation with a 0.64 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.44%, its profits have fallen by -7.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.44% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cogeco Communications, Inc. should be less than 10%
Overall Portfolio exposure to Cables - Electricals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cables - Electricals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cogeco Communications, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cogeco Communications, Inc.

-8.04%

-0.92

23.45%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.54%

EBIT Growth (5y)

2.87%

EBIT to Interest (avg)

3.76

Debt to EBITDA (avg)

3.14

Net Debt to Equity (avg)

1.57

Sales to Capital Employed (avg)

0.38

Tax Ratio

17.89%

Dividend Payout Ratio

43.43%

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

10.75%

ROE (avg)

15.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.63

EV to EBIT

8.78

EV to EBITDA

4.41

EV to Capital Employed

0.85

EV to Sales

2.18

PEG Ratio

Dividend Yield

ROCE (Latest)

9.63%

ROE (Latest)

12.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,192.04 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 55.55%

DIVIDEND PER SHARE(HY)

Highest at CAD 24.74

DEBT-EQUITY RATIO (HY)

Lowest at 144.95 %

DEBTORS TURNOVER RATIO(HY)

Highest at 24.74%

OPERATING PROFIT MARGIN(Q)

Highest at 49.59 %

-6What is not working for the Company

ROCE(HY)

Lowest at 10.72%

NET SALES(Q)

Lowest at CAD 730.68 MM

RAW MATERIAL COST(Y)

Grown by 5.73% (YoY

EPS(Q)

Lowest at CAD 1.64

Here's what is working for Cogeco Communications, Inc.

Operating Cash Flow

Highest at CAD 1,192.04 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend per share

Highest at CAD 24.74 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 55.55% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Operating Profit Margin

Highest at 49.59 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 144.95 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 24.74%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Cogeco Communications, Inc.

Net Sales

Lowest at CAD 730.68 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

EPS

Lowest at CAD 1.64

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Raw Material Cost

Grown by 5.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales