Cogeco Inc. SV (TSE:CGO)
TSX:CGO
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Cogeco Inc. SV
(TSX:CGO)
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Rating:62Neutral
Price Target:
C$76.00
â–²(13.16% Upside)
Action:ReiteratedDate:01/17/26
The score is anchored by a mixed financial profile: strong cash generation and telecom-like operating margins are offset by limited top-line momentum and high leverage. Valuation is a key positive (low P/E and high dividend yield), while technicals show an uptrend but are overextended. Earnings-call commentary was constructive on strategy and guidance, but near-term declines in revenue/EBITDA and weaker free cash flow keep risk elevated.
Positive Factors
Consistent cash generation
Reliable annual operating cash flow (~$1.0–$1.26B) and generally positive free cash flow provide a durable cushion for dividends, capex and debt reduction. This recurring cash generation underpins long-term financial flexibility even if growth is uneven.
Negative Factors
Elevated financial leverage
A debt-heavy capital structure materially raises refinancing and interest-rate sensitivity and constrains strategic flexibility. High leverage makes the company more exposed to macro shocks and limits room for M&A, buybacks or aggressive reinvestment until materially reduced.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Reliable annual operating cash flow (~$1.0–$1.26B) and generally positive free cash flow provide a durable cushion for dividends, capex and debt reduction. This recurring cash generation underpins long-term financial flexibility even if growth is uneven.
Read all positive factors
Cogeco Inc. SV (CGO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$647.61M
Dividend Yield5.98%
Average Volume (3M)29.29K
Price to Earnings (P/E)5.4
Beta (1Y)0.40
Revenue Growth-2.14%
EPS Growth4.40%
CountryCA
Employees4,400
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)3.00
Shares Outstanding8,040,562
10 Day Avg. Volume23,272
30 Day Avg. Volume29,291
Financial Highlights & Ratios
PEG Ratio1.88
Price to Book (P/B)0.67
Price to Sales (P/S)0.19
P/FCF Ratio1.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$75.50Price Target Upside12.42% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)10.55
Revenue Forecast (FY)C$2.92B
Cogeco Inc. SV Business Overview & Revenue Model
Company Description
Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in Canada and the United States. The company operates in two segments, Communications and Other. The Communications segment provides a range of Internet, video...
How the Company Makes Money
Cogeco Inc. generates revenue primarily through its telecommunications services. A significant portion of its income comes from subscription fees for internet, television, and telephony services offered to residential and business customers. The c...
Cogeco Inc. SV Earnings Call Summary
Earnings Call Date:Jan 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 09, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: material operational progress and strategic initiatives (U.S. subscriber turnaround, strong Canadian subscriber adds, media/digital growth, customer-complaint improvements, ratings outlook upgrades, and a maintained dividend) are offset by tangible near-term financial headwinds (notably a near -10% revenue and EBITDA decline in the U.S., consolidated revenue/EBITDA declines, lower free cash flow, and higher capital intensity). Management emphasized that actions and quantified initiatives will materially improve U.S. trends in the second half of the year and reiterated full-year guidance, but near-term quarters remain pressured.Positive Updates
U.S. Subscriber Turnaround Underway
Management reported materially improved U.S. subscriber trends for a second consecutive quarter, describing the quarter as the best U.S. customer metrics in the past 15 quarters. Ohio recorded its best quarter since acquisition with net Internet additions of +2,600, and the recent quarterly Internet decline in the U.S. narrowed to -1,100 subs (significant improvement vs. prior quarters).
Negative Updates
Significant U.S. Revenue Decline
Breezeline (U.S.) revenue declined by -9.9% in constant currency in Q1, driven by cumulative subscriber declines, smaller rate increases vs. prior year, and a competitive pricing environment.
Read all updates
Q1-2026 Updates
Positive
Negative
U.S. Subscriber Turnaround Underway
Management reported materially improved U.S. subscriber trends for a second consecutive quarter, describing the quarter as the best U.S. customer metrics in the past 15 quarters. Ohio recorded its best quarter since acquisition with net Internet additions of +2,600, and the recent quarterly Internet decline in the U.S. narrowed to -1,100 subs (significant improvement vs. prior quarters).
Read all positive updates
Company Guidance
Management said it is maintaining its fiscal 2026 guidance for Cogeco Communications and Cogeco Inc., and expects consolidated Q2 revenue and adjusted EBITDA (constant currency) to decline in the low- to mid-single digits year‑over‑year while remaining on track for full‑year CapEx guidance; they expect U.S. financials to materially improve in H2 as customer trends and quantified cost/revenue initiatives take hold (aiming toward a neutral year‑over‑year U.S. EBITDA exit), with financial expense and acquisition/integration and restructuring costs similar to Q1 and depreciation slightly lower than Q1. Key metrics referenced: Q1 consolidated revenue -4.9% and adjusted EBITDA -3.7% (constant currency), U.S. revenue -9.9% and adjusted EBITDA -9.1%, Canada adjusted EBITDA +2%, free cash flow -15.9% (constant currency), diluted EPS -12.2%, CapEx intensity 22.2% (vs 20.4% a year ago) and on track for full‑year CapEx guidance, net debt/EBITDA 3.2x (targeting low‑3x), and a quarterly dividend of $0.987 (+7% YoY).Cogeco Inc. SV Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
34
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.98B | 3.01B | 3.07B | 3.08B | 3.00B | 2.60B |
| Gross Profit | 1.91B | 862.44M | 904.15M | 928.87M | 897.14M | 1.23B |
| EBITDA | 1.40B | 1.42B | 1.37B | 1.32B | 1.37B | 1.22B |
| Net Income | 83.37M | 84.97M | 96.75M | 70.63M | 457.75M | 439.01M |
Balance Sheet | ||||||
| Total Assets | 9.90B | 9.79B | 9.77B | 9.87B | 9.47B | 7.54B |
| Cash, Cash Equivalents and Short-Term Investments | 65.38M | 75.58M | 77.75M | 334.59M | 251.15M | 368.43M |
| Total Debt | 4.80B | 4.71B | 4.98B | 5.11B | 4.75B | 3.33B |
| Total Liabilities | 6.23B | 6.19B | 6.39B | 6.43B | 6.20B | 4.64B |
| Stockholders Equity | 887.95M | 862.95M | 810.44M | 925.86M | 919.84M | 816.66M |
Cash Flow | ||||||
| Free Cash Flow | 480.82M | 515.17M | 521.15M | 101.98M | 274.75M | 436.05M |
| Operating Cash Flow | 1.09B | 1.13B | 1.19B | 968.21M | 1.26B | 1.03B |
| Investing Cash Flow | -606.53M | -586.48M | -848.34M | -957.88M | -2.41B | -986.24M |
| Financing Cash Flow | -508.42M | -539.26M | -620.09M | -32.84M | 970.90M | -73.41M |
Cogeco Inc. SV Technical Analysis
Negative
67.16
Price Trends
71.24
Negative
67.27
Negative
63.36
Positive
Market Momentum
-0.92
Positive
36.51
Neutral
8.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGO, the sentiment is Negative. The current price of 67.16 is below the 20-day moving average (MA) of 71.64, below the 50-day MA of 71.24, and above the 200-day MA of 63.36, indicating a neutral trend. The MACD of -0.92 indicates Positive momentum. The RSI at 36.51 is Neutral, neither overbought nor oversold. The STOCH value of 8.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CGO.
Cogeco Inc. SV Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$13.10B | 13.87 | 35.31% | 2.69% | -0.29% | 15.30% | |
72 Outperform | C$2.92B | 7.99 | 9.79% | 5.69% | -2.22% | -2.36% | |
71 Outperform | C$13.10B | 13.87 | 35.31% | 2.70% | -0.29% | 15.30% | |
69 Neutral | C$25.93B | 4.04 | 43.97% | 3.94% | 2.75% | 342.54% | |
64 Neutral | C$31.49B | 4.71 | 31.99% | 7.42% | 0.11% | 7109.23% | |
62 Neutral | C$647.61M | 5.38 | 9.61% | 5.98% | -2.14% | 4.40% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
TSE:CGO
Cogeco Inc. SV
67.16
10.86
19.29%
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33.77
5.55
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10.34%
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23.34
67.32%
Cogeco Inc. SV Corporate Events
Business Operations and StrategyFinancial Disclosures
Cogeco Posts Soft Q1 Revenue but Signals U.S. Turnaround and Network Push
Positive
Jan 15, 2026
Cogeco Inc. reported first-quarter 2026 results broadly in line with expectations, showing a 3.8% year-on-year revenue decline to $735.6 million and a 2.5% drop in adjusted EBITDA, largely due to weaker performance in its U.S. telecommunications b...
Business Operations and StrategyDividendsFinancial Disclosures
Cogeco Inc. Reports Q4 2025 Results Amidst Transformation Efforts
Neutral
Oct 30, 2025
Cogeco Inc. reported its fourth-quarter financial results for 2025, highlighting significant growth in Canadian internet subscribers and a successful wireless rollout. The company is undergoing a three-year transformation program aimed at revenue ...
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.