Cogeco Communications (CCA) AI Stock Analysis

• Market Cap: $2.87B
• Dividend Yield: 5.69%
• Average Volume (3M): 83.97K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.39
• Revenue Growth: -2.22%
• EPS Growth: -2.36%
• Country: CA
• Employees: 3,854
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 30,277,650
• 10 Day Avg. Volume: 75,055
• 30 Day Avg. Volume: 83,972
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $88.71
• Price Target Upside: 29.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: C$71.00 ▲(3.98% Upside)

Cogeco Communications' overall stock score is driven primarily by its financial performance and valuation. The company faces challenges in revenue growth and cash flow, but operational efficiency and an attractive valuation with a high dividend yield provide some support. Technical indicators suggest a neutral market sentiment, with potential weakness in momentum.

Positive Factors

Operational Efficiency

Stable EBIT and EBITDA margins indicate strong operational management, allowing the company to maintain efficiency despite revenue challenges.

Leverage Management

Improved leverage management enhances financial stability, reducing risk exposure and potentially lowering future interest costs.

Cash Conversion

Strong cash conversion from earnings supports liquidity and provides financial flexibility for investments and debt servicing.

Negative Factors

Revenue Growth Challenges

Declining revenue growth and margins indicate potential difficulties in market expansion and competitive positioning, affecting long-term growth prospects.

Free Cash Flow Decline

A decline in free cash flow can limit the company's ability to invest in growth initiatives and manage financial obligations effectively.

Profit Margin Decrease

Decreasing profit margins suggest cost pressures or pricing challenges, which can erode profitability and shareholder value over time.

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

Cogeco Communications demonstrates a solid financial position with strong operational margins and cash flow generation. However, challenges with declining revenue growth and high leverage may impact future financial flexibility.

Income Statement

Cogeco Communications shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate, indicating potential challenges in maintaining sales momentum. However, the company maintains a healthy EBIT and EBITDA margin, showcasing operational efficiency. The net profit margin is stable, but slightly lower than previous years, suggesting some pressure on profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which poses a risk of financial leverage. Despite this, the company has managed to maintain a reasonable return on equity, indicating effective use of shareholder funds. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a positive trend with a significant increase in free cash flow growth. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio, while improving, suggests room for further enhancement in cash flow efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.91B	2.91B	2.98B	2.98B	2.90B	2.51B
Gross Profit	1.90B	867.97M	2.49B	932.42M	2.11B	1.63B
EBITDA	1.41B	1.42B	1.36B	1.39B	1.36B	1.20B
Net Income	322.58M	322.58M	335.53M	392.27M	423.30M	401.52M
Balance Sheet
Total Assets	9.69B	9.69B	9.68B	9.77B	9.28B	7.35B
Cash, Cash Equivalents and Short-Term Investments	75.15M	75.15M	76.33M	362.92M	370.90M	365.52M
Total Debt	4.56B	4.56B	4.82B	5.04B	4.68B	3.28B
Total Liabilities	6.01B	6.01B	6.20B	6.33B	6.09B	4.55B
Stockholders Equity	3.16B	3.16B	2.98B	2.96B	2.75B	2.42B
Cash Flow
Free Cash Flow	532.36M	541.84M	516.13M	100.08M	259.55M	426.86M
Operating Cash Flow	1.14B	1.14B	1.18B	962.90M	1.24B	1.02B
Investing Cash Flow	-583.37M	-583.37M	-916.61M	-954.47M	-2.41B	-984.83M
Financing Cash Flow	-552.55M	-552.55M	-542.37M	-23.77M	981.92M	-27.41M

Cogeco Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCA, the sentiment is Positive. The current price of 68.28 is above the 20-day moving average (MA) of 66.65, above the 50-day MA of 66.09, and above the 200-day MA of 65.06, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 72.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CCA.

Cogeco Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCI.B	80 Outperform	C$27.42B	4.04	47.62%	3.94%	2.75%	342.54%
QBR.A	78 Outperform	C$11.69B	14.47	35.34%	2.70%	-0.29%	15.30%
BCE	72 Outperform	$30.79B	4.97	31.28%	7.42%	0.11%	7109.23%
CCA	66 Neutral	$2.87B	8.87	10.26%	5.69%	-2.22%	-2.36%
T	62 Neutral	C$28.82B	23.95	7.30%	9.49%	2.42%	24.37%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TGO	40 Underperform	C$32.89M	-1.23	-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.