Cogeco Communications (CCA) AI Stock Analysis

• Market Cap: C$2.73B
• Dividend Yield: 5.71%
• Average Volume (3M): 53.45K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.37
• Revenue Growth: -0.76%
• EPS Growth: -1.21%
• Country: CA
• Employees: 3,854
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.82
• Shares Outstanding: 30,277,650
• 10 Day Avg. Volume: 61,611
• 30 Day Avg. Volume: 53,449
• PEG Ratio: -0.79
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 5.34
• 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$74.09
• Price Target Upside: 14.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: C$70.00 ▲(8.41% Upside)

Cogeco Communications' overall stock score reflects a solid financial position with strong valuation metrics and strategic initiatives. However, challenges in revenue growth and regulatory issues, particularly in the U.S. market, weigh on the score. The company's focus on operational efficiencies and cash flow improvements is a positive factor.

Positive Factors

Negative Factors

Cogeco Communications Business Overview & Revenue Model

Company Description

Cogeco Communications Inc. operates as a communications corporation in North America. It operates in two segments, Canadian Broadband Services and American Broadband Services. The company offers Internet, video, and telephony services to residential and business customers through its two-way broadband fiber networks. It provides Internet services using modems, Wi-Fi gateways, and extenders either on a rental basis or as part of the Internet service package; video services on a subscription basis; home phone services using Internet protocol (IP); local and long-distance calling services; broadband Internet services; and IP based telephony services and other network connectivity services delivered over fiber optic connection to larger businesses. The company serves the primary service units, Internet, video, and telephony service customers. It offers cable operator services under the Cogeco Connexion name in Québec and Ontario, and in the United States under the Atlantic Broadband brand. The company was formerly known as Cogeco Cable Inc. and changed its name to Cogeco Communications Inc. in January 2016. Cogeco Communications Inc. was founded in 1972 and is headquartered in Montreal, Canada. Cogeco Communications Inc. operates as a subsidiary of Cogeco Inc.

How the Company Makes Money

Cogeco Communications generates revenue through multiple streams primarily centered around its telecommunications services. The main revenue sources include subscription fees from residential and business customers for high-speed internet, cable television, and phone services. Additionally, Cogeco Media contributes to the company's earnings through advertising revenue from its radio stations and media content. Key partnerships with content providers and technology companies enhance its service offerings and customer retention. The company also benefits from economies of scale, as a larger subscriber base allows for reduced operational costs per user, ultimately contributing to its profitability.

Cogeco Communications Financial Statement Overview

Summary

Cogeco Communications demonstrates a solid financial position with strong operational margins and cash flow generation. However, challenges include declining revenue growth and high leverage, which may impact future financial flexibility.

Income Statement

Cogeco Communications shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate, indicating potential challenges in maintaining sales momentum. However, the company maintains a healthy EBIT and EBITDA margin, showcasing operational efficiency. The net profit margin is stable, but slightly lower than previous years, suggesting some pressure on profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which poses a risk of financial leverage. Despite this, the company has managed to maintain a reasonable return on equity, indicating effective use of shareholder funds. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a positive trend with a significant increase in free cash flow growth. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio, while improving, suggests room for further enhancement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.95B	2.98B	2.98B	2.90B	2.51B	2.38B
Gross Profit	1.90B	2.49B	932.42M	2.11B	1.63B	1.55B
EBITDA	1.42B	1.36B	1.39B	1.36B	1.20B	1.17B
Net Income	327.12M	335.53M	392.27M	423.30M	401.52M	375.17M
Balance Sheet
Total Assets	9.87B	9.68B	9.77B	9.28B	7.35B	6.80B
Cash, Cash Equivalents and Short-Term Investments	239.98M	76.33M	362.92M	370.90M	365.52M	366.50M
Total Debt	4.78B	4.82B	5.04B	4.68B	3.28B	3.12B
Total Liabilities	6.22B	6.20B	6.33B	6.09B	4.55B	4.16B
Stockholders Equity	3.13B	2.98B	2.96B	2.75B	2.42B	2.27B
Cash Flow
Free Cash Flow	589.76M	516.13M	100.08M	259.55M	426.86M	433.83M
Operating Cash Flow	1.19B	1.18B	962.90M	1.24B	1.02B	917.82M
Investing Cash Flow	-581.33M	-916.61M	-954.47M	-2.41B	-984.83M	-557.27M
Financing Cash Flow	-415.09M	-542.37M	-23.77M	981.92M	-27.41M	-547.10M

Cogeco Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 64.57
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCA, the sentiment is Negative. The current price of 64.57 is below the 20-day moving average (MA) of 64.83, above the 50-day MA of 64.32, and below the 200-day MA of 65.01, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 48.28 is Neutral, neither overbought nor oversold. The STOCH value of 19.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CCA.

Cogeco Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.B	79 Outperform	9.68B	12.75	32.64%	3.26%	-1.02%	4.71%
RCI.B	75 Outperform	26.39B	17.09	13.56%	4.09%	1.87%	71.51%
T	68 Neutral	33.54B	34.02	6.35%	7.48%	2.56%	21.28%
CCA	67 Neutral	C$2.73B	8.30	10.54%	5.71%	-0.76%	-1.21%
CGO	64 Neutral	587.15M	6.60	10.28%	6.05%	-0.87%	9.49%
BCE	59 Neutral	29.76B	69.98	3.33%	8.91%	-0.66%	-78.79%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Cogeco Communications Corporate Events

Cogeco Communications Reports Q3 2025 Results and Launches Canadian Wireless Service

Cogeco Communications reported its Q3 2025 financial results, highlighting robust growth in Canadian Internet customers and the launch of its wireless service in Canada, which is set to expand into 12 markets. Despite a decrease in revenue and adjusted EBITDA, the company achieved significant free cash flow and is optimistic about its wireless expansion as a strategic tool to retain and grow its customer base. The company is also addressing challenges in the U.S. market with new initiatives aimed at improving customer trends.

The most recent analyst rating on (TSE:CCA) stock is a Hold with a C$71.00 price target. To see the full list of analyst forecasts on Cogeco Communications stock, see the TSE:CCA Stock Forecast page.