ScoreWhy is Cogeco, Inc. ?
1
High Management Efficiency with a high ROCE of 14.80%
2
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 14.80%
3
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
4
Flat results in Feb 26
- OPERATING CASH FLOW(Y) Lowest at CAD 1,011.48 MM
- CASH AND EQV(HY) Lowest at CAD 120.12 MM
- DEBTORS TURNOVER RATIO(HY) Lowest at 15.12 times
5
With ROE of 41.38%, it has a very attractive valuation with a 0.71 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -2.23%, its profits have fallen by -11%
6
Majority shareholders : FIIs
7
Below par performance in long term as well as near term
- Along with generating -2.23% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Cogeco, 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, Inc. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Cogeco, Inc.
-2.23%
1.11
24.98%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.88%
EBIT Growth (5y)
0.60%
EBIT to Interest (avg)
3.70
Debt to EBITDA (avg)
3.17
Net Debt to Equity (avg)
5.94
Sales to Capital Employed (avg)
0.53
Tax Ratio
18.02%
Dividend Payout Ratio
41.24%
Pledged Shares
0
Institutional Holding
1.47%
ROCE (avg)
14.80%
ROE (avg)
51.63%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
2
Industry P/E
Price to Book Value
0.71
EV to EBIT
7.18
EV to EBITDA
3.66
EV to Capital Employed
0.95
EV to Sales
1.77
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
13.29%
ROE (Latest)
41.38%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 49.28%
DEBT-EQUITY RATIO
(HY)
Lowest at 525.75 %
DIVIDEND PER SHARE(HY)
Highest at CAD 15.12
RAW MATERIAL COST(Y)
Fallen by -2.58% (YoY
-10What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CAD 1,011.48 MM
CASH AND EQV(HY)
Lowest at CAD 120.12 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 15.12 times
NET SALES(Q)
Lowest at CAD 713.03 MM
OPERATING PROFIT(Q)
Lowest at CAD 337.06 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 47.27 %
PRE-TAX PROFIT(Q)
Lowest at CAD 107.18 MM
NET PROFIT(Q)
Lowest at CAD 23.43 MM
Here's what is working for Cogeco, Inc.
Debt-Equity Ratio
Lowest at 525.75 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at CAD 15.12 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Dividend Payout Ratio
Highest at 49.28% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -2.58% (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 1,011.48 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)
Net Sales
Lowest at CAD 713.03 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CAD MM)
Operating Profit
Lowest at CAD 337.06 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CAD MM)
Operating Profit Margin
Lowest at 47.27 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CAD 107.18 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CAD MM)
Net Profit
Lowest at CAD 23.43 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
Net Profit
At CAD 23.43 MM has Fallen at -25.89%
over average net sales of the previous four periods of CAD 31.61 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
Cash and Eqv
Lowest at CAD 120.12 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 15.12 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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