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Cogeco Inc. SV (TSE:CGO)
:CGO
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Cogeco Inc. SV
(TSX:CGO)
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Select Model
Rating:64Neutral
Price Target:
C$65.00
▲(5.37% Upside)
Cogeco Inc. SV's overall stock score reflects strong valuation and technical indicators, offset by financial performance challenges. The company's low P/E ratio and high dividend yield suggest potential undervaluation, while technical indicators show neutral to slightly positive momentum. However, high leverage and declining revenue growth pose risks that need to be addressed.
Cogeco Inc. SV (CGO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$565.36M
Dividend Yield6.29%
Average Volume (3M)24.43K
Price to Earnings (P/E)6.6
Beta (1Y)0.52
Revenue Growth-2.14%
EPS Growth4.40%
CountryCA
Employees4,400
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)2.12
Shares Outstanding8,040,562
10 Day Avg. Volume33,376
30 Day Avg. Volume24,426
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Cogeco Inc. SV Business Overview & Revenue Model
Company DescriptionCogeco 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 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:Oct 29, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jan 08, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook. While there are strong growth indicators in the Canadian Internet and wireless segments along with strategic expansions, the company faces revenue and EBITDA challenges, particularly in the U.S. market. Dividend increases and positive customer trends provide optimism, but persistent pressures in the U.S. could temper overall performance.Q4-2025 Updates
Positive Updates
Canadian Internet Customer Growth
Cogeco Communications reported its best Canadian Internet customer growth in 13 years, driven by market share gains in its legacy footprint and ongoing network expansion.
Improved U.S. Subscriber Trends
The company achieved its first customer growth in Ohio in four years, with improved subscriber metrics in the U.S. despite past challenges.
Wireless Deployment Ahead of Plan
The Canadian wireless service launch is ahead of schedule, with positive early sales results leading to a reduction in introductory offers.
Dividend Increase
Cogeco increased its dividend by 7%, reflecting strong anticipated free cash flow in fiscal '26 and '27.
Growth in Digital Advertising
Cogeco Media saw an 8.5% increase in revenue, driven by digital advertising growth and continued listener engagement.
Negative Updates
U.S. Revenue Decline
Breezeline's revenue declined by 9.2% in constant currency due to subscriber base decline and competitive pricing pressures.
Decreased Adjusted EBITDA
Adjusted EBITDA declined by 3.3% on a consolidated level, impacted by revenue pressure in the U.S. and increased operational investments.
Canadian Revenue Decline
Revenue in Canada declined by 1.5% in the fourth quarter, driven by lower revenue per customer from fewer video and wireline phone service subscribers.
Free Cash Flow Decrease in Q4
Free cash flow in constant currency decreased by 27.4% in the fourth quarter, although it was up by 7.9% for the full year.
Company Guidance
During the Q4 2025 earnings call for Cogeco Inc. and Cogeco Communications Inc., the company outlined its strategy and performance metrics, including a 110 basis point year-on-year improvement in adjusted EBITDA margin and a $38 million increase in free cash flow in constant currency. Capital expenditures (CapEx) for network expansion were highlighted, with 35,000 cable doors upgraded to fiber and 50,000 new homes passed in North America. The company anticipates further growth in free cash flow, targeting $600 million by fiscal 2027. For fiscal 2026, Cogeco projects a revenue decrease of 1% to 3% and an adjusted EBITDA decline of 0% to 2%, attributed to increased investments in sales, marketing, and Canadian wireless operations. Despite a 5.3% decline in constant currency revenue at the consolidated level, driven by a 9.2% drop in U.S. revenue, the company plans to grow its Canadian wireless business and improve its U.S. subscriber metrics. Furthermore, Cogeco increased its dividend by 7% and expects continued dividend growth supported by robust free cash flow projections.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.55
Neutral
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.45
Neutral
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.65
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
Negative
61.69
Price Trends
60.50
Negative
61.49
Negative
60.03
Negative
Market Momentum
-0.48
Positive
42.89
Neutral
24.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGO, the sentiment is Negative. The current price of 61.69 is above the 20-day moving average (MA) of 60.18, above the 50-day MA of 60.50, and above the 200-day MA of 60.03, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CGO.
Cogeco Inc. SV Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $29.77B | 4.39 | 47.62% | 3.64% | 2.75% | 342.54% | |
| ― | $10.15B | 13.30 | 33.80% | 3.07% | -1.02% | 4.71% | |
| ― | C$9.90B | 13.10 | 34.50% | 3.00% | -1.02% | 4.71% | |
| ― | $2.79B | 8.57 | 10.26% | 5.78% | -2.22% | -2.36% | |
| ― | C$565.36M | 6.56 | 10.16% | 6.29% | -2.14% | 4.40% | |
| ― | $29.90B | 70.31 | 2.91% | 8.95% | -0.66% | -78.79% | |
| ― | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
TSE:CGO
Cogeco Inc. SV
60.36
2.14
3.68%
TSE:BCE
BCE
32.06
-4.64
-12.65%
TSE:RCI.B
Rogers Communication
54.89
5.62
11.40%
TSE:QBR.A
Quebecor Inc Cl A MV
45.25
11.30
33.28%
TSE:CCA
Cogeco Communications
65.85
-1.02
-1.53%
TSE:QBR.B
Quebecor
44.68
10.54
30.87%
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.