Cogeco Inc. SV (CGO) AI Stock Analysis

• Market Cap: C$592.74M
• Dividend Yield: 6%
• Average Volume (3M): 27.38K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.57
• Revenue Growth: -0.87%
• EPS Growth: 9.49%
• Country: CA
• Employees: 4,400
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 2.40
• Shares Outstanding: 8,040,562
• 10 Day Avg. Volume: 23,053
• 30 Day Avg. Volume: 27,381
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$65.00
• Price Target Upside: 5.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: C$65.00 ▲(5.74% Upside)

Cogeco Inc. SV's overall stock score reflects a balance of strong operational efficiency and cash flow generation against challenges such as declining revenue growth and high leverage. The technical indicators suggest short-term bullish momentum, and the stock's valuation appears attractive with a low P/E ratio and high dividend yield. However, mixed results from the earnings call, particularly challenges in the U.S. market, weigh on the overall score.

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, and telephony services through its two-way broadband fiber networks primarily to residential customers, as well as to small and medium sized businesses under the Cogeco Connexion name in Quebec and Ontario; and Atlantic Broadband brand in the United States. The Other segment owns and operates 23 radio stations with complementary radio formats and coverage serving a range of audiences primarily across the province of Québec; and Cogeco News, a news agency. It serves primary service units, Internet, video, and telephony service customers. The company was incorporated in 1957 and is headquartered in Montreal, Canada.

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 company's subsidiary, Atlantic Broadband, extends its market presence in the United States, contributing to its revenue streams by providing similar services. Additionally, Cogeco Media contributes to revenue through advertising sales across its network of radio stations. Partnerships with content providers, technology vendors, and infrastructure developers play a crucial role in supporting and expanding its service offerings, thereby enhancing its earning potential.

Cogeco Inc. SV Financial Statement Overview

Summary

Cogeco Inc. SV shows strong operational efficiency and cash flow generation, but faces challenges with declining revenue growth and high leverage. The company needs to address its debt levels to mitigate financial risks while maintaining its profitability and cash flow strengths.

Income Statement

Cogeco Inc. SV's income statement shows a decline in revenue growth with a negative growth rate of -0.61% TTM, indicating potential challenges in maintaining sales momentum. The gross profit margin is relatively strong at 63.95% TTM, suggesting efficient cost management. However, the net profit margin is low at 2.88% TTM, reflecting limited profitability. The EBIT and EBITDA margins are healthy at 23.01% and 46.98% TTM, respectively, indicating solid operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 5.78 TTM, indicating significant leverage and potential financial risk. The return on equity is modest at 10.40% TTM, showing moderate efficiency in generating returns on shareholders' equity. The equity ratio is low, suggesting a heavy reliance on debt financing, which could pose risks if market conditions change.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 113.53% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 1.36 TTM, reflecting good cash conversion from earnings. The free cash flow to net income ratio is 0.49 TTM, suggesting a reasonable level of free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.05B	3.07B	3.08B	3.00B	2.60B	2.48B
Gross Profit	1.95B	904.15M	928.87M	897.14M	1.23B	1.17B
EBITDA	1.43B	1.37B	1.32B	1.37B	1.22B	1.18B
Net Income	87.73M	96.75M	70.63M	457.75M	439.01M	401.83M
Balance Sheet
Total Assets	9.97B	9.77B	9.87B	9.47B	7.54B	7.02B
Cash, Cash Equivalents and Short-Term Investments	240.94M	77.75M	334.59M	251.15M	368.43M	406.11M
Total Debt	4.94B	4.98B	5.11B	4.75B	3.33B	3.23B
Total Liabilities	6.41B	6.39B	6.43B	6.20B	4.64B	4.32B
Stockholders Equity	853.78M	810.44M	925.86M	919.84M	816.66M	761.50M
Cash Flow
Free Cash Flow	580.71M	521.15M	101.98M	274.75M	436.05M	454.39M
Operating Cash Flow	1.19B	1.19B	968.21M	1.26B	1.03B	941.63M
Investing Cash Flow	-511.98M	-848.34M	-957.88M	-2.41B	-986.24M	-560.50M
Financing Cash Flow	-479.13M	-620.09M	-32.84M	970.90M	-73.41M	-530.95M

Cogeco Inc. SV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.47
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGO, the sentiment is Positive. The current price of 61.47 is above the 20-day moving average (MA) of 61.19, above the 50-day MA of 60.14, and above the 200-day MA of 59.55, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 54.56 is Neutral, neither overbought nor oversold. The STOCH value of 35.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CGO.

Cogeco Inc. SV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.B	79 Outperform	9.74B	12.82	32.64%	3.20%	-1.02%	4.71%
RCI.B	71 Outperform	26.94B	17.26	13.56%	4.02%	1.87%	71.51%
QBR.A	71 Outperform	9.74B	12.70	32.64%	3.21%	-1.02%	4.71%
CCA	67 Neutral	2.74B	8.26	10.46%	5.70%	-0.76%	-1.21%
CGO	62 Neutral	C$592.74M	6.58	10.54%	6.00%	-0.87%	9.49%
BCE	59 Neutral	30.04B	70.44	3.33%	8.91%	-0.66%	-78.79%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Cogeco Inc. SV Corporate Events

Cogeco Inc. Reports Q3 2025 Results and Launches Canadian Wireless Service

Cogeco Inc. reported its Q3 2025 financial results, highlighting strong growth in Canadian Internet subscribers and the launch of its wireless service in Canada. Despite a decrease in overall revenue, the company achieved significant free cash flow and aims to expand its wireless service to 12 Canadian markets, enhancing its North American customer base. The company is also addressing challenges in the U.S. market and experiencing growth in digital advertising within its media segment.

The most recent analyst rating on (TSE:CGO) stock is a Hold with a C$67.00 price target. To see the full list of analyst forecasts on Cogeco Inc. SV stock, see the TSE:CGO Stock Forecast page.