Cogeco Inc. SV (CGO) AI Stock Analysis

• Market Cap: C$647.80M
• Dividend Yield: 6.02%
• Average Volume (3M): 10.97K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.59
• Revenue Growth: -0.87%
• EPS Growth: 9.49%
• Country: CA
• Employees: 4,400
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 2.40
• Shares Outstanding: 8,040,562
• 10 Day Avg. Volume: 14,393
• 30 Day Avg. Volume: 10,971
• PEG Ratio: -1.71
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.38
• 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$74.00
• Price Target Upside: 20.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: C$67.00 ▲(9.35%Upside)

Cogeco Inc. scores 69, driven primarily by financial performance and valuation. The company's strong operational efficiency and attractive valuation are offset by high leverage, declining profitability, and challenges in the U.S. market. Technical indicators suggest bearish momentum, though the stock appears undervalued with a compelling dividend yield. The mixed earnings call highlights both strengths and market challenges, particularly in the U.S.

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 through several key streams. The primary source of income is from its telecommunications services offered by Cogeco Connexion. This includes subscription fees from cable television, internet, and telephony services provided to residential and business customers. Additional revenue comes from equipment rentals and installation services. Cogeco Media contributes to the company's earnings through advertising sales across its numerous radio stations. Significant partnerships with content providers, technology companies, and local advertisers also play an essential role in driving revenue. Strategic investments in infrastructure and technology further enhance service offerings, supporting customer retention and acquisition, which are critical factors in sustaining and growing the company's earnings.

Cogeco Inc. SV Financial Statement Overview

Summary

Cogeco Inc. SV exhibits strong operational efficiency with healthy EBIT and EBITDA margins but faces challenges with low net income margins and slowing revenue growth. The balance sheet is heavily leveraged, presenting potential risks despite stable asset management. Cash flow generation is robust, yet recent declines in free cash flow warrant attention. Overall, the company reflects a mix of strengths in operational metrics but faces risks due to high leverage and declining profitability.

Income Statement

The TTM (Trailing-Twelve-Months) gross profit margin stands at 64.35%, indicating robust profitability. However, the net profit margin is relatively low at 2.81%, reflecting challenges in translating revenue into net income. The revenue growth rate has been sluggish, with a slight decline in recent periods. EBIT and EBITDA margins are healthy, suggesting operational efficiency, but the decreasing net income signals potential concerns.

Balance Sheet

The company's debt-to-equity ratio of 6.04 indicates high leverage, which could pose financial risks. The return on equity (ROE) is modest at 9.96%, showing decent but not outstanding returns for shareholders. The equity ratio of 8.44% is low, suggesting a reliance on debt financing. Overall, the balance sheet reflects a stable but highly leveraged financial position.

Cash Flow

The operating cash flow to net income ratio of 13.00 is strong, underscoring effective cash generation relative to earnings. However, the free cash flow growth rate has been negative recently, which may impact future financial flexibility. The free cash flow to net income ratio of 3.16 reveals some room for improvement in converting earnings to free cash flow.

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

Cogeco Inc. SV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.27
• 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:CGO, the sentiment is Negative. The current price of 61.27 is below the 20-day moving average (MA) of 66.51, below the 50-day MA of 65.48, and above the 200-day MA of 59.83, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 37.31 is Neutral, neither overbought nor oversold. The STOCH value of 14.37 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CGO	69 Neutral	C$647.80M	7.28	10.54%	6.02%	-0.87%	9.49%
Sector *	55 Neutral	AU$3.56B	16.65	-1.37%	3.12%	4.07%	-17.03%
BCE	―	$22.22B	87.62	2.83%	5.36%	―	―
RCI	―	$18.20B	14.11	16.65%	4.30%	―	―
QBR.A	80 Outperform	C$9.30B	12.45	37.46%	3.41%	-1.11%	8.17%
CGEAF	―	$2.19B	9.33	10.54%	5.10%	―	―
QBCRF	―	$6.79B	12.42	37.69%	3.46%	―	―

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.