Loading...

We've got a brand new version of Simply Wall St! Try it out

Cogeco Communications

TSX:CCA
Snowflake Description

Average dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CCA
TSX
CA$6B
Market Cap
  1. Home
  2. CA
  3. Media
Company description

Cogeco Communications Inc. operates as a communications corporation in North America. The last earnings update was 17 days ago. More info.


Add to Portfolio Compare Print
CCA Share Price and Events
7 Day Returns
5.4%
TSX:CCA
4%
CA Media
0.6%
CA Market
1 Year Returns
81.2%
TSX:CCA
21%
CA Media
7.2%
CA Market
CCA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cogeco Communications (CCA) 5.4% 5.6% 10.2% 81.2% 82.6% 79.5%
CA Media 4% 5.6% 8.7% 21% 21.3% 1.7%
CA Market 0.6% 3% 4.5% 7.2% 7.8% 8.2%
1 Year Return vs Industry and Market
  • CCA outperformed the Media industry which returned 21% over the past year.
  • CCA outperformed the Market in Canada which returned 7.2% over the past year.
Price Volatility
CCA
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Cogeco Communications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cogeco Communications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cogeco Communications.

TSX:CCA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:CCA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Media Unlevered Beta Simply Wall St/ S&P Global 0.77
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.769 (1 + (1- 26.5%) (59.57%))
1.071
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.071 * 5.96%)
8.33%

Discounted Cash Flow Calculation for TSX:CCA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cogeco Communications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:CCA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.33%)
2020 475.53 Analyst x8 438.96
2021 491.56 Analyst x7 418.87
2022 463.00 Analyst x1 364.20
2023 447.85 Est @ -3.27% 325.20
2024 440.21 Est @ -1.71% 295.08
2025 437.53 Est @ -0.61% 270.73
2026 438.21 Est @ 0.16% 250.31
2027 441.26 Est @ 0.69% 232.66
2028 445.98 Est @ 1.07% 217.07
2029 451.92 Est @ 1.33% 203.05
Present value of next 10 years cash flows CA$3,016.00
TSX:CCA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$451.92 × (1 + 1.95%) ÷ (8.33% – 1.95%)
CA$7,218.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$7,218.99 ÷ (1 + 8.33%)10
CA$3,243.59
TSX:CCA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$3,016.00 + CA$3,243.59
CA$6,259.59
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$6,259.59 / 49.21
CA$127.19
TSX:CCA Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$127.19
Current discount Discount to share price of CA$116.15
= -1 x (CA$116.15 - CA$127.19) / CA$127.19
8.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cogeco Communications is available for.
Intrinsic value
9%
Share price is CA$116.15 vs Future cash flow value of CA$127.19
Current Discount Checks
For Cogeco Communications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cogeco Communications's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Cogeco Communications's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cogeco Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cogeco Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CCA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-08-31) in CAD CA$6.89
TSX:CCA Share Price ** TSX (2019-11-15) in CAD CA$116.15
Canada Media Industry PE Ratio Median Figure of 11 Publicly-Listed Media Companies 16.34x
Canada Market PE Ratio Median Figure of 514 Publicly-Listed Companies 14.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cogeco Communications.

TSX:CCA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CCA Share Price ÷ EPS (both in CAD)

= 116.15 ÷ 6.89

16.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cogeco Communications is overvalued based on earnings compared to the CA Media industry average.
  • Cogeco Communications is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Cogeco Communications's expected growth come at a high price?
Raw Data
TSX:CCA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
0.8%per year
Canada Media Industry PEG Ratio Median Figure of 5 Publicly-Listed Media Companies 21.38x
Canada Market PEG Ratio Median Figure of 236 Publicly-Listed Companies 1.01x

*Line of best fit is calculated by linear regression .

TSX:CCA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.86x ÷ 0.8%

21.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cogeco Communications is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cogeco Communications's assets?
Raw Data
TSX:CCA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-08-31) in CAD CA$44.70
TSX:CCA Share Price * TSX (2019-11-15) in CAD CA$116.15
Canada Media Industry PB Ratio Median Figure of 18 Publicly-Listed Media Companies 0.71x
Canada Market PB Ratio Median Figure of 2,290 Publicly-Listed Companies 1.29x
TSX:CCA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CCA Share Price ÷ Book Value per Share (both in CAD)

= 116.15 ÷ 44.70

2.6x

* Primary Listing of Cogeco Communications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cogeco Communications is overvalued based on assets compared to the CA Media industry average.
X
Value checks
We assess Cogeco Communications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Media industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Media industry average (and greater than 0)? (1 check)
  5. Cogeco Communications has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cogeco Communications expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cogeco Communications expected to grow at an attractive rate?
  • Cogeco Communications's earnings growth is positive but not above the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Cogeco Communications's earnings growth is positive but not above the Canada market average.
  • Cogeco Communications's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CCA Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CCA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 0.8%
TSX:CCA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 1.9%
Canada Media Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Canada Media Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:CCA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CCA Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-08-31
2022-08-31 2,422 950 345 1
2021-08-31 2,436 970 352 8
2020-08-31 2,388 930 366 9
2019-11-16
TSX:CCA Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-08-31 2,332 911 340
2019-05-31 2,590 1,623 297
2019-02-28 2,570 798 267
2018-11-30 2,516 795 343
2018-08-31 2,147 686 375
2018-05-31 2,133 714 374
2018-02-28 2,131 782 383
2017-11-30 2,162 828 302
2017-08-31 2,227 957 299
2017-05-31 2,219 872 302
2017-02-28 2,194 812 -161
2016-11-30 2,185 773 -176

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cogeco Communications's earnings are expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).
  • Cogeco Communications's revenue is expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CCA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Cogeco Communications Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CCA Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-08-31
2022-08-31
2021-08-31 7.40 7.40 7.40 1.00
2020-08-31 7.49 7.65 7.32 2.00
2019-11-16
TSX:CCA Past Financials Data
Date (Data in CAD Millions) EPS *
2019-08-31 6.89
2019-05-31 6.01
2019-02-28 5.42
2018-11-30 6.95
2018-08-31 7.61
2018-05-31 7.58
2018-02-28 7.77
2017-11-30 6.14
2017-08-31 6.08
2017-05-31 6.15
2017-02-28 -3.28
2016-11-30 -3.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cogeco Communications is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Cogeco Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cogeco Communications has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cogeco Communications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cogeco Communications's growth in the last year to its industry (Media).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cogeco Communications's year on year earnings growth rate has been positive over the past 5 years.
  • Cogeco Communications's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Cogeco Communications's 1-year earnings growth is negative, it can't be compared to the CA Media industry average.
Earnings and Revenue History
Cogeco Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cogeco Communications Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CCA Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-08-31 2,331.82 339.97 19.90
2019-05-31 2,590.48 296.81 19.47
2019-02-28 2,570.21 267.39 18.82
2018-11-30 2,515.94 342.67 19.03
2018-08-31 2,147.40 375.21 18.96
2018-05-31 2,132.95 373.80 18.82
2018-02-28 2,131.03 382.81 19.28
2017-11-30 2,162.05 302.47 18.98
2017-08-31 2,226.85 299.23 18.94
2017-05-31 2,219.18 302.47 18.87
2017-02-28 2,194.28 -161.09 18.66
2016-11-30 2,184.93 -175.71 18.57
2016-08-31 2,176.15 -189.63 18.47
2016-05-31 2,152.51 -186.22 13.89
2016-02-29 2,128.68 265.28 9.30
2015-11-30 2,086.63 262.15 4.59
2015-08-31 2,043.32 257.75 9.88
2015-05-31 2,013.05 243.61 9.88
2015-02-28 1,993.07 214.98 9.88
2014-11-30 1,969.61 216.45 10.04
2014-08-31 1,947.59 209.44 9.67
2014-05-31 1,927.82 189.46 9.67
2014-02-28 1,895.87 201.83 9.67
2013-11-30 1,839.54 192.48 12.50
2013-08-31 1,692.47 184.90 9.57
2013-05-31 1,546.85 186.73 9.57
2013-02-28 1,402.12 192.01 9.57
2012-11-30 1,290.19 172.06 8.92

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cogeco Communications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cogeco Communications used its assets more efficiently than the CA Media industry average last year based on Return on Assets.
  • Cogeco Communications's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cogeco Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Media industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cogeco Communications has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cogeco Communications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cogeco Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cogeco Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cogeco Communications's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cogeco Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cogeco Communications Company Filings, last reported 2 months ago.

TSX:CCA Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-08-31 2,559.48 3,404.86 556.50
2019-05-31 2,542.29 3,461.98 447.74
2019-02-28 2,434.24 3,856.24 59.39
2018-11-30 2,401.21 3,980.79 70.89
2018-08-31 2,333.61 3,864.16 84.73
2018-05-31 2,246.21 3,865.78 62.82
2018-02-28 2,193.49 4,031.46 207.65
2017-11-30 1,657.79 2,639.96 156.24
2017-08-31 1,599.27 2,580.43 265.19
2017-05-31 1,560.09 2,729.89 102.07
2017-02-28 1,500.47 2,761.36 45.84
2016-11-30 1,438.99 2,920.84 43.54
2016-08-31 1,379.92 2,904.93 62.29
2016-05-31 1,440.88 3,038.86 54.76
2016-02-29 1,852.67 3,149.80 30.72
2015-11-30 1,804.10 3,210.93 37.67
2015-08-31 1,758.97 3,280.02 163.17
2015-05-31 1,677.81 2,930.21 73.31
2015-02-28 1,629.90 2,962.38 17.92
2014-11-30 1,556.43 2,865.01 16.29
2014-08-31 1,508.26 2,717.71 63.83
2014-05-31 1,456.73 2,829.49 30.53
2014-02-28 1,439.79 2,977.78 54.77
2013-11-30 1,381.64 2,955.43 26.53
2013-08-31 1,342.94 2,905.43 39.58
2013-05-31 1,316.50 2,984.26 37.89
2013-02-28 1,288.73 2,986.68 36.68
2012-11-30 1,215.83 2,285.17 9.28
  • Cogeco Communications's level of debt (133%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (180.2% vs 133% today).
  • Debt is well covered by operating cash flow (26.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess Cogeco Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cogeco Communications has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Cogeco Communications's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2%
Current annual income from Cogeco Communications dividends. Estimated to be 2.15% next year.
If you bought CA$2,000 of Cogeco Communications shares you are expected to receive CA$40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cogeco Communications's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2%).
  • Cogeco Communications's dividend is below the markets top 25% of dividend payers in Canada (5.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:CCA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Canada Media Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CCA Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-08-31
2022-08-31 2.81 1.00
2021-08-31 2.55 1.00
2020-08-31 2.32 2.00
2019-11-16
TSX:CCA Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-10-30 2.320 2.062
2019-07-10 2.100 1.979
2019-04-09 2.100 2.283
2019-01-10 2.100 2.649
2018-10-31 2.100 3.231
2018-07-11 1.900 2.831
2018-04-12 1.900 2.800
2018-01-11 1.900 2.583
2017-11-02 1.900 2.149
2017-07-13 1.720 1.906
2017-04-06 1.720 2.195
2017-01-11 1.720 2.413
2016-11-02 1.720 2.668
2016-07-06 1.560 2.463
2016-04-13 1.560 2.348
2015-10-29 1.560 2.402
2015-10-28 1.560 2.280
2015-07-14 1.400 2.088
2015-04-08 1.400 2.047
2015-01-13 1.400 1.921
2014-10-31 1.400 2.089
2014-07-09 1.200 1.993
2014-04-09 1.200 1.967
2014-01-13 1.200 2.247
2013-10-30 1.200 2.474
2013-07-11 1.040 2.114
2013-04-15 1.040 2.334
2013-01-14 1.040 2.393
2012-11-05 1.000 2.596
2012-11-01 1.000 2.649
2012-04-12 1.000 2.453
2012-04-11 1.000 1.954
2011-10-27 1.000 1.998
2011-07-07 0.800 1.712
2011-04-08 0.680 1.524
2011-01-13 0.680 1.587
2010-10-27 0.680 1.691
2010-07-08 0.560 1.559
2010-04-08 0.560 1.621
2010-01-13 0.560 1.379
2009-10-29 0.560 1.665
2009-07-10 0.480 1.661
2009-04-09 0.480 1.665
2009-01-14 0.480 1.463

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Cogeco Communications's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Cogeco Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cogeco Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cogeco Communications has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Cogeco Communications's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Philippe Jetté
COMPENSATION CA$832,851
AGE 54
TENURE AS CEO 1.2 years
CEO Bio

Mr. Philippe Jetté, P.Eng, has been President and Chief Executive Officer of Cogeco Inc. and Cogeco Communications Inc., since September 01, 2018 respectively. He serves as Director of Cogeco Inc. since January 11, 2019. He was President of Cogeco Peer 1 Inc., subsidiary of Cogeco Communications Inc. until September 01, 2018. He served as the President of Peer 1 Dedicated Hosting Inc. He served as Chief Technology & Strategy Officer and Senior Vice President at Cogeco Inc. Mr. Jetté served as the Chief Technology & Strategy Officer of Cogeco Cable Inc. and also served as its Senior Vice President. He has spent his entire career in the wireless industry and has been with the BCE family since 1993. He joined Cogeco Communications in 2011. Mr. Jetté served as the Chief Technology Officer of Cogeco Cable Inc. He served as Vice President of Cogeco Cable Inc, from March 9, 2011 to August 16, 2013. Mr. Jetté served as Vice President of Data Solutions at Bell Mobility, Inc. He oversaw the development and execution of wireless marketing and business development strategies relating to large Canadian enterprises. Over the past two decades, Mr. Jetté has gained a wealth of experience and a strong reputation in managing and leading business units and engineering organizations, as well as in telecommunications network, product and technology development, in Canada and abroad including with Rogers, Bell Mobility and Bell Canada. With 18 years of experience as a professional engineer, he has a solid background in planning, developing and operating wireless technologies. He managed the deployment of several radio networks across Canada. Mr. Jetté acts as a Governor of the Alumni Association of École Polytechnique (Montréal). Mr. Jetté holds bachelor's degree in Electrical Engineering from Universite de Montreal's Ecole Polytechnique.

CEO Compensation
  • Philippe's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Philippe's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Cogeco Communications management team in years:

3.3
Average Tenure
  • The tenure for the Cogeco Communications management team is about average.
Management Team

Louis Audet

TITLE
Executive Chairman of the Board
COMPENSATION
CA$5M
AGE
68
TENURE
1.2 yrs

Patrice Ouimet

TITLE
CFO & Senior VP
COMPENSATION
CA$2M
TENURE
5 yrs

Christian Jolivet

TITLE
Senior VP of Corporate Affairs
COMPENSATION
CA$1M
TENURE
17.8 yrs

Ken Smithard

TITLE
President of Cogeco Connexion
COMPENSATION
CA$2M
TENURE
3.2 yrs

Philippe Jetté

TITLE
President
COMPENSATION
CA$833K
AGE
54
TENURE
1.2 yrs

Michel Blais

TITLE
Vice President of Engineering & Operations

Luc Noiseux

TITLE
Senior VP and Chief Technology & Strategy Officer
TENURE
3.3 yrs

Marie-Hélène Labrie

TITLE
Senior VP and Chief Public Affairs & Communications Officer

Liette Vigneault

TITLE
Vice President of Human Resources & Communications

Philippe Bonin

TITLE
Vice President of Corporate Development
TENURE
3.7 yrs
Board of Directors Tenure

Average tenure and age of the Cogeco Communications board of directors in years:

2.5
Average Tenure
64.5
Average Age
  • The average tenure for the Cogeco Communications board of directors is less than 3 years, this suggests a new board.
Board of Directors

Philippe Jetté

TITLE
President
COMPENSATION
CA$833K
AGE
54
TENURE
0.8 yrs

Carole Salomon

TITLE
Independent Director
COMPENSATION
CA$132K
AGE
73
TENURE
10.8 yrs

Louis Audet

TITLE
Executive Chairman of the Board
COMPENSATION
CA$5M
AGE
68
TENURE
1.2 yrs

Patricia Curadeau-Grou

TITLE
Independent Director
COMPENSATION
CA$129K
AGE
64
TENURE
7.8 yrs

Joanne Ferstman

TITLE
Independent Director
COMPENSATION
CA$137K
AGE
51
TENURE
3.8 yrs

James Cherry

TITLE
Lead Independent Director
AGE
65
TENURE
0.8 yrs

David McAusland

TITLE
Independent Director
COMPENSATION
CA$125K
AGE
65
TENURE
20.8 yrs

Lib Gibson

TITLE
Independent Director
COMPENSATION
CA$81K
AGE
73
TENURE
4.8 yrs

Colleen Abdoulah

TITLE
Independent Director
AGE
59
TENURE
0.8 yrs

Pippa Dunn

TITLE
Independent Director
AGE
52
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Cogeco Communications individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
23. Aug 19 Sell Luc Noiseux Individual 22. Aug 19 22. Aug 19 -260 CA$106.05 CA$-27,573
05. Aug 19 Sell Christian Jolivet Individual 01. Aug 19 01. Aug 19 -742 CA$106.38 CA$-78,914
20. Jul 19 Sell Pierre Maheux Individual 15. Jul 19 15. Jul 19 -703 CA$104.75 CA$-73,639
19. Jul 19 Sell Andrée Pinard Individual 16. Jul 19 16. Jul 19 -730 CA$106.04 CA$-77,409
18. Jul 19 Sell Patrice Ouimet Individual 15. Jul 19 15. Jul 19 -3,000 CA$103.22 CA$-309,645
15. Jul 19 Sell Pierre Maheux Individual 15. Jul 19 15. Jul 19 -704 CA$104.75 CA$-73,744
23. Apr 19 Sell Philippe Bonin Individual 18. Apr 19 18. Apr 19 -156 CA$89.63 CA$-13,982
01. Mar 19 Sell Elizabeth Alves Individual 28. Feb 19 28. Feb 19 -292 CA$82.14 CA$-23,892
X
Management checks
We assess Cogeco Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cogeco Communications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Estimating The Fair Value Of Cogeco Communications Inc. (TSE:CCA)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$471.9m CA$465.0m CA$432.0m CA$433.8m CA$437.6m CA$442.8m CA$449.1m CA$456.2m CA$463.9m CA$472.1m Growth Rate Estimate Source Analyst x9 Analyst x1 Analyst x1 Est @ 0.42% Est @ 0.88% Est @ 1.2% Est @ 1.42% Est @ 1.58% Est @ 1.69% Est @ 1.77% Present Value (CA$, Millions) Discounted @ 8.35% CA$435.5 CA$396.1 CA$339.6 CA$314.7 CA$293.0 CA$273.7 CA$256.2 CA$240.2 CA$225.4 CA$211.7 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$3.0b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … TSX:CCA Intrinsic value, August 26th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Should You Be Tempted To Sell Cogeco Communications Inc. (TSE:CCA) Because Of Its P/E Ratio?

We'll look at Cogeco Communications Inc.'s (TSE:CCA) P/E ratio and reflect on what it tells us about the company's share price. … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Cogeco Communications: P/E of 17.35 = CA$104.31 ÷ CA$6.01 (Based on the year to May 2019.) Is A High P/E Ratio Good? … The Bottom Line On Cogeco Communications's P/E Ratio Cogeco Communications has a P/E of 17.3.

Simply Wall St -

Is Cogeco Communications (TSE:CCA) Using Too Much Debt?

TSX:CCA Historical Debt, August 1st 2019 A Look At Cogeco Communications's Liabilities The latest balance sheet data shows that Cogeco Communications had liabilities of CA$312.3m due within a year, and liabilities of CA$4.03b falling due after that. … Happily for any shareholders, Cogeco Communications actually produced more free cash flow than EBIT over the last three years. … Our View When it comes to the balance sheet, the standout positive for Cogeco Communications was the fact that it seems able to convert EBIT to free cash flow confidently.

Simply Wall St -

There's A Lot To Like About Cogeco Communications Inc.'s (TSE:CCA) Upcoming 0.5% Dividend

Cogeco Communications's next dividend payment will be CA$0.53 per share, and in the last 12 months, the company paid a total of CA$2.10 per share. … See our latest analysis for Cogeco Communications Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. … Earnings per share growth has been growing somewhat, and Cogeco Communications is paying out less than half its earnings and cash flow as dividends.

Simply Wall St -

Cogeco Communications Inc. (TSE:CCA) Has A ROE Of 12%

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Cogeco Communications: 12% = CA$297m ÷ CA$2.5b (Based on the trailing twelve months to May 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Cogeco Communications Have A Good Return On Equity? … How Does Debt Impact Return On Equity?

Simply Wall St -

Don’t Buy Cogeco Communications Inc. (TSE:CCA) Until You Understand Its ROCE

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Cogeco Communications: 0.086 = CA$583m ÷ (CA$7.2b - CA$386m) (Based on the trailing twelve months to February 2019.) Therefore, Cogeco Communications has an ROCE of 8.6%. … Cogeco Communications's Current Liabilities And Their Impact On Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Cogeco Communications has a low level of current liabilities, which have a minimal impact on its uninspiring ROCE.

Simply Wall St -

What Does Cogeco Communications Inc.’s (TSE:CCA) 8.6% ROCE Say About The Business?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Cogeco Communications: 0.086 = CA$583m ÷ (CA$7.2b - CA$386m) (Based on the trailing twelve months to February 2019.) So, Cogeco Communications has an ROCE of 8.6%. … Do Cogeco Communications's Current Liabilities Skew Its ROCE? … Cogeco Communications reports few current liabilities, which have a negligible impact on its unremarkable ROCE.

Simply Wall St -

Does Cogeco Communications Inc. (TSE:CCA) Have A Place In Your Dividend Portfolio?

Dividend paying stocks like Cogeco Communications Inc. … Conclusion To summarise, shareholders should always check that Cogeco Communications's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Investors Who Bought Cogeco Communications (TSE:CCA) Shares Five Years Ago Are Now Up 45%

To wit, the Cogeco Communications share price has climbed 45% in five years, easily topping the market return of 4.2% (ignoring dividends). … During five years of share price growth, Cogeco Communications achieved compound earnings per share (EPS) growth of 5.5% per year. … We note that for Cogeco Communications the TSR over the last 5 years was 64%, which is better than the share price return mentioned above.

Simply Wall St -

An Intrinsic Calculation For Cogeco Communications Inc. (TSE:CCA) Suggests It's 42% Undervalued

(TSE:CCA) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (CA$, Millions) CA$413.14 CA$446.34 CA$429.00 CA$411.00 CA$411.80 CA$414.76 CA$419.28 CA$424.92 CA$431.40 CA$438.53 Growth Rate Estimate Source Analyst x8 Analyst x8 Analyst x1 Analyst x1 Est @ 0.19% Est @ 0.72% Est @ 1.09% Est @ 1.35% Est @ 1.53% Est @ 1.65% Present Value (CA$, Millions) Discounted @ 6.72% CA$387.14 CA$391.93 CA$353.01 CA$316.91 CA$297.55 CA$280.83 CA$266.03 CA$252.64 CA$240.36 CA$228.95 Present Value of 10-year Cash Flow (PVCF)= CA$3.02b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … We discount the terminal cash flows to today's value at a cost of equity of 6.7%.

Simply Wall St -

Company Info

Description

Cogeco Communications Inc. operates as a communications corporation in North America. The company operates in two segments, Canadian Broadband Services and American Broadband Services. It offers digital video and programming services, such as digital tier packages, discretionary services, pay-per-view channels, video-on-demand services, high definition and 4K television services, and advanced video services; Internet services; and telephony services to residential customers comprising direct international calling, international long distance plans, voicemail, and other custom calling features. The company also provides a range of Internet packages; video services; telephony services; managed cloud services; and other advanced network connectivity services, such as session initiation protocol, primary rate interface trunk solutions, hosted private branch exchange solutions, and business and software efficiency services for business customers. The company was formerly known as Cogeco Cable Inc. and changed its name to Cogeco Communications Inc. in January 2016. The company was founded in 1972 and is headquartered in Montreal, Canada.

Details
Name: Cogeco Communications Inc.
CCA
Exchange: TSX
Founded: 1972
CA$5,716,109,230
49,213,166
Website: http://corpo.cogeco.com/cca/en
Address: Cogeco Communications Inc.
5 Place Ville Marie,
Suite 1700,
Montreal,
Quebec, H3B 0B3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CCA Subordinate Voting Shares The Toronto Stock Exchange CA CAD 06. Jul 1993
OTCPK CGEA.F Subordinate Voting Shares Pink Sheets LLC US USD 06. Jul 1993
DB COG Subordinate Voting Shares Deutsche Boerse AG DE EUR 06. Jul 1993
Number of employees
Current staff
Staff numbers
4,574
Cogeco Communications employees.
Industry
Cable and Satellite
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/16 23:33
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/14
Last earnings filing: 2019/10/30
Last earnings reported: 2019/08/31
Last annual earnings reported: 2019/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.