Cogeco, Inc. (CGO) 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.

Stingray Group, Inc.

Quebecor, Inc.

Cogeco Communications, Inc.

Cogeco, Inc.

Asian Television Network International Ltd.

Why is Cogeco, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.88% and Operating profit at 0.60% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -0.10%, its profits have fallen by -11%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.10% 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 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, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cogeco, Inc.

-0.1%

0.74

23.41%

S&P/TSX 60

28.13%

2.33

12.07%

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)

0.60%

EBIT to Interest (avg)

3.15

Debt to EBITDA (avg)

3.21

Net Debt to Equity (avg)

5.94

Sales to Capital Employed (avg)

0.54

Tax Ratio

15.98%

Dividend Payout Ratio

41.24%

Pledged Shares

Institutional Holding

1.46%

ROCE (avg)

14.32%

ROE (avg)

51.63%

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

0.57

EV to EBIT

7.00

EV to EBITDA

3.56

EV to Capital Employed

0.93

EV to Sales

1.73

PEG Ratio

Dividend Yield

ROCE (Latest)

13.29%

ROE (Latest)

41.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

20What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 16.67

RAW MATERIAL COST(Y)

Fallen by -9.61% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 49.3 %

PRE-TAX PROFIT(Q)

Highest at CAD 138.46 MM

NET PROFIT(Q)

Highest at CAD 1,843.52 MM

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 933.71 MM

ROCE(HY)

Lowest at -51.24%

CASH AND EQV(HY)

Lowest at CAD 132.16 MM

DEBT-EQUITY RATIO (HY)

Highest at 945.58 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.67 times

EPS(Q)

Lowest at CAD -42.84

Here's what is working for Cogeco, Inc.

Net Profit

At CAD 1,843.52 MM has Grown at 5,798.37%

over average net sales of the previous four periods of CAD 31.25 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Dividend per share

Highest at CAD 16.67 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Profit Margin

Highest at 49.3 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 138.46 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 1,843.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Raw Material Cost

Fallen by -9.61% (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, Inc.

Operating Cash Flow

Lowest at CAD 933.71 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

EPS

Lowest at CAD -42.84

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Cash and Eqv

Lowest at CAD 132.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 945.58 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 16.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio