Cogeco Communications (TSE:CCA)
TSX:CCA
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Cogeco Communications
(TSX:CCA)
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Rating:72Outperform
Price Target:
C$81.00
▲(15.66% Upside)
Action:UpgradedDate:01/17/26
The score is driven by strong valuation (low P/E and high dividend yield) and solid underlying profitability/cash generation. It is held back by modest-to-negative revenue and free-cash-flow momentum and a leveraged balance sheet, while technicals show an uptrend but with overbought conditions that add near-term risk.
Positive Factors
High operating margins
Sustained EBIT and EBITDA margins near telecom best-in-class levels indicate strong unit economics and pricing power. High margins provide durable earnings resilience, fund reinvestment and dividends, and cushion the business through demand cycles over the next several months.
Negative Factors
Softening revenue trend
Top‑line momentum is modest-to-negative, which limits the company’s ability to expand margins through scale. Persistent revenue declines constrain reinvestment, reduce free cash flow expansion potential and make long‑term leverage reduction more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
High operating margins
Sustained EBIT and EBITDA margins near telecom best-in-class levels indicate strong unit economics and pricing power. High margins provide durable earnings resilience, fund reinvestment and dividends, and cushion the business through demand cycles over the next several months.
Read all positive factors
Cogeco Communications (CCA) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.96B
Dividend Yield5.69%
Average Volume (3M)83.97K
Price to Earnings (P/E)8.0
Beta (1Y)0.40
Revenue Growth-2.22%
EPS Growth-2.36%
CountryCA
Employees3,854
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)2.11
Shares Outstanding30,277,650
10 Day Avg. Volume75,055
30 Day Avg. Volume83,972
Financial Highlights & Ratios
PEG Ratio-3.14
Price to Book (P/B)0.86
Price to Sales (P/S)0.93
P/FCF Ratio4.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$75.80Price Target Upside8.24% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)8.74
Revenue Forecast (FY)C$2.82B
Cogeco Communications Business Overview & Revenue Model
Company Description
Cogeco Communications Inc. operates as a communications corporation in North America. It operates in two segments, Canadian Broadband Services and American Broadband Services. The company offers Internet, video, and telephony services to residenti...
How the Company Makes Money
Cogeco Communications generates revenue through multiple streams primarily centered around its telecommunications services. The main revenue sources include subscription fees from residential and business customers for high-speed internet, cable t...
Cogeco Communications Earnings Call Summary
Earnings Call Date:Jul 15, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 09, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with strong Canadian performance and strategic initiatives like the wireless launch, contrasted by revenue declines and competitive challenges in the U.S. and regulatory issues in Canada.Positive Updates
Strong Canadian Internet Subscriber Growth
Cogeco reported strong growth in Canadian Internet subscribers, adding 9,400 new subscribers during the quarter, contributing positively to customer trends.
Negative Updates
Revenue Decline in U.S. Operations
Breezeline's revenue declined by 6.6% in constant currency, with a decrease of 10,400 Internet subscribers during the quarter due to increased competition and internal execution gaps.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Canadian Internet Subscriber Growth
Cogeco reported strong growth in Canadian Internet subscribers, adding 9,400 new subscribers during the quarter, contributing positively to customer trends.
Read all positive updates
Company Guidance
During the Q3 2025 earnings call, Cogeco Inc. and Cogeco Communications Inc. provided several key metrics and insights into their performance and future outlook. The company highlighted strong Canadian Internet subscriber growth, reporting an addition of 9,400 new subscribers, and noted significant operational efficiencies leading to OpEx and CapEx synergies. They achieved a capital intensity of 17.2%, down from 22.4% the previous year, resulting in a free cash flow increase of 61.5% in constant currency. The company aims to generate approximately $600 million in free cash flow by fiscal 2027. Despite pressure in the U.S. market, Cogeco maintained its adjusted EBITDA guidance for the year, thanks to operating efficiencies. They plan to launch a wireless service exclusive to their wireline customers and are optimistic about improvements in U.S. customer metrics. Cogeco's debt was reported at 3.1x debt to adjusted EBITDA, with plans to continue lowering this ratio and raising dividends.Cogeco Communications Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
62
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.88B | 2.91B | 2.98B | 2.98B | 2.90B | 2.51B |
| Gross Profit | 1.37B | 867.97M | 2.49B | 932.42M | 2.11B | 1.63B |
| EBITDA | 1.40B | 1.42B | 1.36B | 1.39B | 1.36B | 1.20B |
| Net Income | 310.67M | 322.58M | 335.53M | 392.27M | 423.30M | 401.52M |
Balance Sheet | ||||||
| Total Assets | 9.80B | 9.69B | 9.68B | 9.77B | 9.28B | 7.35B |
| Cash, Cash Equivalents and Short-Term Investments | 65.13M | 75.15M | 76.33M | 362.92M | 370.90M | 365.52M |
| Total Debt | 4.64B | 4.56B | 4.82B | 5.04B | 4.68B | 3.28B |
| Total Liabilities | 6.04B | 6.01B | 6.20B | 6.33B | 6.09B | 4.55B |
| Stockholders Equity | 3.23B | 3.16B | 2.98B | 2.96B | 2.75B | 2.42B |
Cash Flow | ||||||
| Free Cash Flow | 489.43M | 541.84M | 516.13M | 100.08M | 259.55M | 426.86M |
| Operating Cash Flow | 1.10B | 1.14B | 1.18B | 962.90M | 1.24B | 1.02B |
| Investing Cash Flow | -605.02M | -583.37M | -916.61M | -954.47M | -2.41B | -984.83M |
| Financing Cash Flow | -511.54M | -552.55M | -542.37M | -23.77M | 981.92M | -27.41M |
Cogeco Communications Technical Analysis
Negative
70.03
Price Trends
70.51
Negative
68.00
Positive
65.80
Positive
Market Momentum
0.83
Positive
42.32
Neutral
34.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCA, the sentiment is Negative. The current price of 70.03 is below the 20-day moving average (MA) of 72.82, below the 50-day MA of 70.51, and above the 200-day MA of 65.80, indicating a neutral trend. The MACD of 0.83 indicates Positive momentum. The RSI at 42.32 is Neutral, neither overbought nor oversold. The STOCH value of 34.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CCA.
Cogeco Communications Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$28.94B | 4.04 | 43.97% | 3.94% | 2.75% | 342.54% | |
72 Outperform | C$2.96B | 7.99 | 9.79% | 5.69% | -2.22% | -2.36% | |
71 Outperform | C$13.48B | 13.87 | 35.31% | 2.70% | -0.29% | 15.30% | |
64 Neutral | C$32.69B | 4.71 | 31.99% | 7.42% | 0.11% | 7109.23% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | C$27.68B | 24.88 | 7.68% | 9.49% | 2.42% | 24.37% | |
48 Neutral | C$32.76M | -1.80 | -755.68% | ― | -1.53% | 2.48% |
* Communication Services Sector Average
TSE:CCA
Cogeco Communications
70.03
3.81
5.76%
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BCE
35.06
3.75
11.97%
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45.18%
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Cogeco Communications Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Cogeco Communications Reports Q4 2025 Results with Strong Canadian Growth
Positive
Oct 30, 2025
Cogeco Communications reported its Q4 2025 financial results, highlighting strong growth in Canadian Internet subscribers and a successful wireless rollout. The company is undergoing a three-year transformation program aimed at revenue generation ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.