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Cogeco Inc. SV (TSE:CGO)
TSX:CGO
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Cogeco Inc. SV
(TSX:CGO)
Rating:60Neutral
Price Target:
C$63.00
▲(4.51% Upside)
Cogeco Inc. SV (CGO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$581.27M
Dividend Yield6.12%
Average Volume (3M)31.75K
Price to Earnings (P/E)6.5
Beta (1Y)0.56
Revenue Growth-0.87%
EPS Growth9.49%
CountryCA
Employees4,400
SectorCommunication Services
Sector Strength89
IndustryTelecommunications Services
Share Statistics
EPS (TTM)2.40
Shares Outstanding8,040,562
10 Day Avg. Volume28,465
30 Day Avg. Volume31,745
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.75
Price to Sales (P/S)0.20
P/FCF Ratio1.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$63.00Price Target Upside4.51% Upside
Rating ConsensusHold
Number of Analyst Covering0
Cogeco Inc. SV Business Overview & Revenue Model
Company DescriptionCogeco Inc. is a diversified telecommunications and media company headquartered in Canada. It operates primarily through its subsidiaries, Cogeco Connexion and Atlantic Broadband, providing residential and commercial customers with high-speed Internet, video, telephony services, and business information and communications technology (ICT) services. The company is also involved in the media sector through its subsidiary, Cogeco Media, which operates radio stations across Quebec.
How the Company Makes MoneyCogeco 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 Earnings Call Summary
Earnings Call Date:Jul 15, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were significant achievements in Canadian subscriber growth, operational efficiencies, and a new wireless launch, these were tempered by challenges in U.S. markets, regulatory setbacks, and declines in certain segments. The positive aspects like strong free cash flow and debt reduction were countered by the need to revise revenue outlooks and address competitive pressures.Q3-2025 Updates
Positive Updates
Strong Canadian Internet Subscriber Growth
The company experienced strong growth in Canadian Internet subscribers, adding 9,400 new subscribers during the quarter.
OpEx and CapEx Synergies Exceeding Plan
Operational efficiencies and synergies from transformation initiatives have resulted in CapEx being below prior estimates, contributing to a strong balance sheet and the projection of $600 million in free cash flow by fiscal 2027.
Canadian Wireless Launch
Cogeco is launching a Canadian wireless service, the first major wireless launch in Canada in over 10 years, which will be exclusive to wireline customers.
Free Cash Flow Increase
Free cash flow in constant currency increased by 61.5% due to lower CapEx and restructuring costs.
Debt Reduction
Debt to adjusted EBITDA improved to 3.1x from 3.4x due to lower net debt and favorable exchange rates.
Dividend Declaration
A dividend of $0.922 per share was declared, reflecting confidence in the company's financial position.
Negative Updates
Decline in U.S. Revenue
Breezeline's U.S. revenue declined by 6.6% in constant currency due to a decline in the subscriber base and increased competition.
Challenges in Radio Advertising Market
Cogeco Media faced challenges in the radio advertising market despite a 4.4% increase in revenue from digital advertising solutions.
CRTC Regulatory Challenges
The CRTC rejected Cogeco's appeal regarding the TPIA regime, which was seen as favoring large telecom companies over regional players like Cogeco.
U.S. Subscriber Metrics Impacted
U.S. subscriber metrics were affected by increased competition and internal execution gaps, leading to a decline of 10,400 Internet subscribers during the quarter.
Lower Revenue Outlook
Due to U.S. pressures, the company lowered its revenue outlook, though this was offset by operating efficiencies.
Company Guidance
During the Q3 2025 earnings call, Cogeco Inc. and Cogeco Communications Inc. provided guidance highlighting several key metrics. The company expects to generate approximately $600 million in free cash flow by fiscal 2027, with current net debt to adjusted EBITDA standing at 3.1x. For fiscal 2025, Cogeco anticipates a low single-digit decline in revenue, primarily due to U.S. market pressures, but expects adjusted EBITDA to remain stable year-over-year. The company revised its net capital expenditures guidance downwards to between $600 million and $650 million, citing operational efficiencies. Free cash flow guidance was also raised, reflecting transformation-related CapEx synergies. Additionally, Cogeco's Canadian operations showed strong Internet subscriber growth, adding 9,400 new subscribers, while U.S. operations faced competition-driven challenges, resulting in a loss of 10,400 Internet subscribers. The company remains optimistic about improvements in U.S. customer metrics and plans to launch Canadian wireless services, initially targeting low to mid data users.Cogeco Inc. SV Financial Statement Overview
Summary
Cogeco Inc. demonstrates strong operational efficiency with healthy EBIT and EBITDA margins. However, it struggles 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, though recent declines in free cash flow require attention.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.70
Positive
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.65
Positive
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.75
Positive
| 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
Neutral
60.28
Price Trends
61.84
Negative
61.98
Negative
59.28
Positive
Market Momentum
-0.46
Negative
53.94
Neutral
88.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGO, the sentiment is Neutral. The current price of 60.28 is above the 20-day moving average (MA) of 58.73, below the 50-day MA of 61.84, and above the 200-day MA of 59.28, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 88.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CGO.
Cogeco Inc. SV Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $44.01B | 4.39 | -12.81% | 4.08% | 1.86% | -42.71% | |
60 Neutral | C$581.27M | 6.53 | 10.54% | 6.12% | -0.87% | 9.49% | |
| ― | $23.25B | 84.96 | 2.91% | 9.79% | ― | ― | |
| ― | $19.51B | 17.57 | 13.68% | 4.00% | ― | ― | |
70 Outperform | C$9.50B | 12.21 | 34.50% | 3.27% | -1.02% | 4.71% | |
| ― | $1.98B | 8.40 | 10.54% | 5.62% | ― | ― | |
| ― | $6.92B | 12.69 | 33.80% | 3.26% | ― | ― |
* Communication Services Sector Average
Performance Comparison
TSE:CGO
Cogeco Inc. SV
60.28
9.94
19.75%
BCE
BCE
24.96
-7.26
-22.53%
RCI
Rogers Communication
35.83
-2.76
-7.15%
TSE:QBR.A
Quebecor Inc Cl A MV
40.78
8.73
27.24%
CGEAF
Cogeco Communications
46.84
2.17
4.86%
QBCRF
Quebecor
30.40
6.57
27.57%
Cogeco Inc. SV Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Cogeco Inc. Reports Q3 2025 Results and Launches Canadian Wireless Service
Neutral
Jul 16, 2025
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.
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.