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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

TVA Group, Inc.

Cogeco, Inc.

Cogeco Communications, Inc.

Quebecor, Inc.

Stingray 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.

9.37%

-0.92

23.45%

S&P/TSX 60

23.72%

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)

3.57%

EBIT Growth (5y)

1.69%

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

48.12%

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

0.96

EV to EBIT

10.56

EV to EBITDA

5.31

EV to Capital Employed

0.98

EV to Sales

2.64

PEG Ratio

Dividend Yield

ROCE (Latest)

9.32%

ROE (Latest)

11.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 20.26

INTEREST COVERAGE RATIO(Q)

Highest at 555.03

DIVIDEND PAYOUT RATIO(Y)

Highest at 46.86%

RAW MATERIAL COST(Y)

Fallen by 0.07% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 141.73 %

-7What is not working for the Company

ROCE(HY)

Lowest at 9.82%

NET SALES(Q)

Lowest at CAD 707.25 MM

CASH AND EQV(HY)

Lowest at CAD 140.28 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 20.26 times

OPERATING PROFIT(Q)

Lowest at CAD 353.82 MM

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

Interest Coverage Ratio

Highest at 555.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at CAD 20.26 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Debt-Equity Ratio

Lowest at 141.73 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 46.86%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.07% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Net Sales

Lowest at CAD 707.25 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 353.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Cash and Eqv

Lowest at CAD 140.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 20.26 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio