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TSX

Cogeco Inc.

CGO.TOCommunication ServicesTelecommunications Services
Current Price
$70.94
Today's Change
-0.04%
Market Cap
$673.84M
Volume
21.16K

💡 Quick Take

Cogeco Inc. operates in the communications and media sectors in Canada and the U.S., focusing on telecommunications services. Strengths include a solid gross margin of 49.2% and a decent net margin of 13.1%, indicating operational efficiency. However, concerns arise from a low current ratio of 0.44 and a high debt-to-equity ratio of 5.41, suggesting liquidity issues and significant leverage. Despite high margins, the overall financial health score of 33/100 raises questions about sustainability and growth potential.

Based on 26 data points⚠️Not financial advice

📊 Key Metrics

52 Week High$72.62
52 Week Low$53.41
Avg Volume26.76K
Beta0.54
Shares Outstanding9.50M

🔥 Valuation

Market Cap$673.84M
Enterprise Value$8.19B
P/E Ratio8.21
EV/EBITDAN/A
Dividend Yield5.84%

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🚩 Red Flags

🟠

High Debt Load

Debt of $4.8B is 73.4x the company's cash position of $65.4M.

🌟 Opportunities

🚀

Gross margin expanded by 22.3 percentage points, indicating improved pricing power or cost efficiency.

🚀

Exceptional gross margin of 69.0% indicates strong pricing power and competitive moat.

🚀

Excellent operating cash flow margin of 36.7% indicates high-quality earnings.

🚀

Operating cash flow of $1092.8M exceeds net income by 622%, indicating high-quality earnings with strong cash conversion.

💪

Strong free cash flow margin of 36.7% provides substantial resources for dividends, buybacks, or reinvestment.

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