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.

Stingray Group, Inc.

Quebecor, 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 2.88% and Operating profit at 0.78% over the last 5 years

Flat results in Feb 26

OPERATING CASH FLOW(Y) Lowest at CAD 1,012.81 MM
ROCE(HY) Lowest at 9.88%
NET SALES(Q) Lowest at CAD 693.56 MM

Below par performance in long term as well as near term

Along with generating -6.62% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Cogeco Communications, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cogeco Communications, Inc.

-6.62%

-0.88

24.92%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.88%

EBIT Growth (5y)

0.78%

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

0.88

EV to EBIT

10.08

EV to EBITDA

5.14

EV to Capital Employed

0.95

EV to Sales

2.55

PEG Ratio

Dividend Yield

ROCE (Latest)

9.40%

ROE (Latest)

11.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 139.88 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 51.81%

RAW MATERIAL COST(Y)

Fallen by -3.77% (YoY

DIVIDEND PER SHARE(HY)

Highest at CAD 16.72

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 1,012.81 MM

ROCE(HY)

Lowest at 9.88%

NET SALES(Q)

Lowest at CAD 693.56 MM

CASH AND EQV(HY)

Lowest at CAD 119.63 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.72 times

OPERATING PROFIT(Q)

Lowest at CAD 337.75 MM

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

Debt-Equity Ratio

Lowest at 139.88 % and Grown

In each half year 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 per share

Highest at CAD 16.72

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 51.81%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.77% (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 693.56 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 Cash Flow

Lowest at CAD 1,012.81 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Operating Profit

Lowest at CAD 337.75 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 119.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 16.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio