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TSX

Cogeco Communications Inc.

CCA.TOCommunication ServicesTelecommunications Services
Current Price
$69.00
Today's Change
+0.73%
Market Cap
$2.91B
Volume
171.02K

💡 Quick Take

Cogeco Communications Inc. operates as a telecommunications provider in North America, offering broadband services in both Canada and the U.S. Key strengths include a solid gross margin of 50.9% and an EBITDA margin of 49.8%, indicating efficient operations. However, concerns arise from a low ROE of 2.9% and a current ratio of 0.40, suggesting liquidity issues. The high margins paired with a relatively low market cap of $2.91B may indicate undervaluation, but the significant debt-to-equity ratio of 1.44 raises red flags about financial stability.

Based on 26 data points⚠️Not financial advice

📊 Key Metrics

52 Week High$74.39
52 Week Low$60.75
Avg Volume128.32K
Beta0.65
Shares Outstanding42.10M

🔥 Valuation

Market Cap$2.91B
Enterprise Value$8.01B
P/E Ratio9.44
EV/EBITDAN/A
Dividend Yield5.49%

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🚩 Red Flags

🟠

Margin Compression

Gross profit margin declined from 65.5% to 52.7% year-over-year, suggesting pricing pressure or rising input costs are squeezing profitability.

🟠

High Debt Load

Debt of $4.6B is 71.2x the company's cash position of $65.1M.

🌟 Opportunities

💪

Strong gross margin of 52.7% reflects healthy unit economics.

🚀

Excellent operating cash flow margin of 37.8% indicates high-quality earnings.

🚀

Operating cash flow of $1089.1M exceeds net income by 246%, indicating high-quality earnings with strong cash conversion.

💪

Strong free cash flow margin of 37.8% provides substantial resources for dividends, buybacks, or reinvestment.

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