Cogeco Inc. SV (CGO) AI Stock Analysis

• Market Cap: C$631.02M
• Dividend Yield: 5.98%
• Average Volume (3M): 29.29K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.39
• Revenue Growth: -2.14%
• EPS Growth: 4.40%
• Country: CA
• Employees: 4,400
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 8,040,562
• 10 Day Avg. Volume: 23,272
• 30 Day Avg. Volume: 29,291
• PEG Ratio: 1.88
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 1.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: C$68.00 ▲(5.79% Upside)

The score is driven by stable operating profitability and cash flow but meaningfully capped by very high leverage and weak/declining recent revenue. Technicals are supportive (price above key moving averages with positive momentum), and valuation is compelling (low P/E and high yield), while earnings-call guidance remains mixed due to expected near-term revenue/EBITDA declines and U.S. pressures.

Positive Factors

Strong Free Cash Flow

The significant increase in free cash flow indicates strong cash generation capabilities, providing the company with financial flexibility for future investments and debt reduction.

Canadian Wireless Launch

The launch of a new wireless service in Canada represents a strategic expansion into a new market, potentially increasing revenue streams and enhancing competitive positioning.

Operational Efficiencies

Achieving operational efficiencies and exceeding CapEx synergy targets strengthens the company's financial health and supports sustainable long-term growth.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Decline in U.S. Revenue

The decline in U.S. revenue highlights challenges in maintaining market share amidst competition, impacting overall revenue growth and profitability.

CRTC Regulatory Challenges

Regulatory setbacks could hinder Cogeco's competitive positioning and market access, affecting long-term strategic goals and industry dynamics.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.01B	3.01B	3.07B	3.08B	3.00B	2.60B
Gross Profit	2.46B	3.01B	904.15M	928.87M	897.14M	1.23B
EBITDA	1.42B	1.42B	1.37B	1.32B	1.37B	1.22B
Net Income	84.97M	84.97M	96.75M	70.63M	457.75M	439.01M
Balance Sheet
Total Assets	9.79B	9.79B	9.77B	9.87B	9.47B	7.54B
Cash, Cash Equivalents and Short-Term Investments	75.58M	75.58M	77.75M	334.59M	251.15M	368.43M
Total Debt	4.71B	4.71B	4.98B	5.11B	4.75B	3.33B
Total Liabilities	6.19B	6.19B	6.39B	6.43B	6.20B	4.64B
Stockholders Equity	862.95M	862.95M	810.44M	925.86M	919.84M	816.66M
Cash Flow
Free Cash Flow	515.17M	515.17M	521.15M	101.98M	274.75M	436.05M
Operating Cash Flow	1.13B	1.13B	1.19B	968.21M	1.26B	1.03B
Investing Cash Flow	-586.48M	-586.48M	-848.34M	-957.88M	-2.41B	-986.24M
Financing Cash Flow	-539.26M	-539.26M	-620.09M	-32.84M	970.90M	-73.41M

Cogeco Inc. SV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 64.28 is above the 20-day moving average (MA) of 63.58, above the 50-day MA of 62.50, and above the 200-day MA of 61.05, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 67.32 is Neutral, neither overbought nor oversold. The STOCH value of 90.07 is Negative, 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
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%
QBR.B	75 Outperform	C$11.69B	14.38	34.72%	2.69%	-0.29%	15.30%
BCE	72 Outperform	$30.79B	4.97	31.28%	7.42%	0.11%	7109.23%
CCA	66 Neutral	C$2.87B	8.87	10.26%	5.69%	-2.22%	-2.36%
CGO	62 Neutral	C$631.02M	7.32	10.16%	5.98%	-2.14%	4.40%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Cogeco Inc. SV Corporate Events

Cogeco Inc. Reports Q4 2025 Results Amidst Transformation Efforts

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 generation and cost efficiencies, with a 7% increase in quarterly dividends. Despite a challenging market, Cogeco Media achieved revenue growth through digital advertising. However, the company’s overall revenue and adjusted EBITDA saw declines due to competitive pricing and a shift towards internet-only services, impacting both Canadian and American telecommunications segments.

The most recent analyst rating on (TSE:CGO) stock is a Hold with a C$65.00 price target. To see the full list of analyst forecasts on Cogeco Inc. SV stock, see the TSE:CGO Stock Forecast page.