Cogeco Communications (CCA) AI Stock Analysis

• Market Cap: $2.77B
• Dividend Yield: 5.69%
• Average Volume (3M): 83.97K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.54
• Revenue Growth: -2.22%
• EPS Growth: -2.36%
• Country: CA
• Employees: 3,854
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 2.11
• Shares Outstanding: 30,277,650
• 10 Day Avg. Volume: 75,055
• 30 Day Avg. Volume: 83,972
• PEG Ratio: -3.14
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 4.99
• Enterprise Value/Market Cap: 2.64
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 5.34
• Enterprise Value/Ebitda: 5.26
• 1Y Price Target: $73.60
• Price Target Upside: 12.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$81.00 ▲(23.42% Upside)

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.

Robust operating cash generation

Operating cash flow roughly double net income shows high earnings quality and reliable internal funding. This supports recurring capex, dividend maintenance and debt service without immediate reliance on external financing, preserving strategic flexibility.

North American footprint and segment diversification

A two‑market, two‑segment structure spreads regulatory and demand risk while enabling scale benefits. U.S. Atlantic Broadband provides geographic growth optionality versus the Canadian base, improving resilience and long‑term customer diversification.

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.

Meaningful financial leverage

Material leverage restricts financial flexibility and increases exposure to rising interest costs or operational setbacks. With elevated debt relative to equity, the firm has less headroom for aggressive buybacks or acquisitions and must prioritize deleveraging if cash flow weakens.

Thin and declining free cash flow

FCF is positive but modest versus net income and has fallen recently, leaving limited surplus for faster debt paydown or stepped-up shareholder returns. Ongoing capital intensity means incremental investment or volatility could pressure cash available for strategic moves.

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 residential and business customers through its two-way broadband fiber networks. It provides Internet services using modems, Wi-Fi gateways, and extenders either on a rental basis or as part of the Internet service package; video services on a subscription basis; home phone services using Internet protocol (IP); local and long-distance calling services; broadband Internet services; and IP based telephony services and other network connectivity services delivered over fiber optic connection to larger businesses. The company serves the primary service units, Internet, video, and telephony service customers. It offers cable operator services under the Cogeco Connexion name in Québec and Ontario, and in the United States under the Atlantic Broadband brand. The company was formerly known as Cogeco Cable Inc. and changed its name to Cogeco Communications Inc. in January 2016. Cogeco Communications Inc. was founded in 1972 and is headquartered in Montreal, Canada. Cogeco Communications Inc. operates as a subsidiary of Cogeco Inc.

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 television, and phone services. Additionally, Cogeco Media contributes to the company's earnings through advertising revenue from its radio stations and media content. Key partnerships with content providers and technology companies enhance its service offerings and customer retention. The company also benefits from economies of scale, as a larger subscriber base allows for reduced operational costs per user, ultimately contributing to its profitability.

Cogeco Communications Financial Statement Overview

Summary

Strong profitability for a telecom (TTM EBIT margin ~24%, EBITDA margin ~49%) and solid operating cash flow (~C$1.10B, ~2.0x net income). Offsetting this, revenue is slightly negative (TTM ~-1.1%), free cash flow has declined (~-8.1% TTM) and is relatively thin versus net income (~0.47x), and leverage is meaningful (debt ~C$4.6B vs equity ~C$3.2B).

Income Statement

Cogeco Communications shows solid profitability for a telecom: TTM (Trailing-Twelve-Months) operating profitability remains strong (EBIT margin ~24% and EBITDA margin ~49%) with net margin ~11%. That said, growth has turned negative, with TTM revenue down ~1.1% and the last few annual periods showing low-to-negative revenue momentum, alongside some pressure on net income versus prior years. Overall, profitability is a strength, but the current top-line trajectory is a clear headwind.

Balance Sheet

The balance sheet is stable but meaningfully leveraged. Total debt is high at roughly C$4.6B versus equity of ~C$3.2B, translating to debt at about 1.4x equity in TTM (Trailing-Twelve-Months), which is manageable for the sector but limits flexibility if operating conditions weaken. Returns on equity are positive but have cooled versus earlier years (around ~9.8% TTM), suggesting profitability is not fully offsetting the leverage risk.

Cash Flow

Cash generation is generally supportive: TTM (Trailing-Twelve-Months) operating cash flow is strong (~C$1.10B) and covers net income by about ~2.0x, indicating good earnings quality. Free cash flow is positive (~C$489M TTM) but has declined (about -8.1% growth) and represents under half of net income (~0.47x), pointing to ongoing capital intensity and less cushion for faster debt paydown or accelerated shareholder returns.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.91B	2.98B	2.98B	2.90B	2.51B
Gross Profit	867.97M	2.49B	932.42M	2.11B	1.63B
EBITDA	1.42B	1.36B	1.39B	1.36B	1.20B
Net Income	322.58M	335.53M	392.27M	423.30M	401.52M
Balance Sheet
Total Assets	9.69B	9.68B	9.77B	9.28B	7.35B
Cash, Cash Equivalents and Short-Term Investments	75.15M	76.33M	362.92M	370.90M	365.52M
Total Debt	4.56B	4.82B	5.04B	4.68B	3.28B
Total Liabilities	6.01B	6.20B	6.33B	6.09B	4.55B
Stockholders Equity	3.16B	2.98B	2.96B	2.75B	2.42B
Cash Flow
Free Cash Flow	541.84M	516.13M	100.08M	259.55M	426.86M
Operating Cash Flow	1.14B	1.18B	962.90M	1.24B	1.02B
Investing Cash Flow	-583.37M	-916.61M	-954.47M	-2.41B	-984.83M
Financing Cash Flow	-552.55M	-542.37M	-23.77M	981.92M	-27.41M

Cogeco Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.63
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 65.63 is below the 20-day moving average (MA) of 68.14, below the 50-day MA of 66.67, and above the 200-day MA of 64.50, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 41.76 is Neutral, neither overbought nor oversold. The STOCH value of 4.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CCA.

Cogeco Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.A	78 Outperform	C$11.31B	14.03	35.34%	2.70%	-0.29%	15.30%
CCA	72 Outperform	$2.77B	8.90	10.26%	5.69%	-2.22%	-2.36%
BCE	72 Outperform	C$32.82B	5.30	31.28%	7.42%	0.11%	7109.23%
RCI.B	71 Outperform	C$27.83B	4.03	40.24%	3.94%	2.75%	342.54%
T	62 Neutral	$29.47B	24.49	7.30%	9.49%	2.42%	24.37%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TGO	49 Neutral	C$38.10M	-1.47	-755.68%	―	-1.53%	2.48%

Cogeco Communications Corporate Events

Cogeco Communications Reports Q4 2025 Results with Strong Canadian Growth

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 and cost efficiencies, with the first year meeting internal targets. Despite a 5.2% decrease in revenue, Cogeco remains optimistic about future subscriber trends, particularly in the U.S., and has increased its quarterly dividend by 7.0%.

The most recent analyst rating on (TSE:CCA) stock is a Hold with a C$76.00 price target. To see the full list of analyst forecasts on Cogeco Communications stock, see the TSE:CCA Stock Forecast page.