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Cogeco

TSX:CGO
Snowflake Description

Adequate balance sheet and fair value.

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

Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in Canada and the United States. The last earnings update was 17 days ago. More info.


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CGO Share Price and Events
7 Day Returns
4.9%
TSX:CGO
4%
CA Media
0.6%
CA Market
1 Year Returns
71.2%
TSX:CGO
21%
CA Media
7.2%
CA Market
CGO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cogeco (CGO) 4.9% 6.3% 9.8% 71.2% 98.8% 77%
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
  • CGO outperformed the Media industry which returned 21% over the past year.
  • CGO outperformed the Market in Canada which returned 7.2% over the past year.
Price Volatility
CGO
Industry
5yr Volatility vs Market

Value

 Is Cogeco 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 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.

TSX:CGO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.6%
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:CGO
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%) (205.75%))
1.624
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.62
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.624 * 5.96%)
11.63%

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

The calculations below outline how an intrinsic value for Cogeco 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:CGO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 11.63%)
2020 486.90 Analyst x1 436.18
2021 531.30 Analyst x1 426.37
2022 564.26 Est @ 6.2% 405.65
2023 592.06 Est @ 4.93% 381.30
2024 615.94 Est @ 4.03% 355.35
2025 636.93 Est @ 3.41% 329.18
2026 655.84 Est @ 2.97% 303.65
2027 673.30 Est @ 2.66% 279.26
2028 689.78 Est @ 2.45% 256.29
2029 705.63 Est @ 2.3% 234.87
Present value of next 10 years cash flows CA$3,408.00
TSX:CGO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$705.63 × (1 + 1.95%) ÷ (11.63% – 1.95%)
CA$7,430.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$7,430.29 ÷ (1 + 11.63%)10
CA$2,473.17
TSX:CGO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$3,408.00 + CA$2,473.17
CA$5,881.17
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$5,881.17 / 15.99
CA$367.91
TSX:CGO Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$367.91
Current discount Discount to share price of CA$105.26
= -1 x (CA$105.26 - CA$367.91) / CA$367.91
71.4%

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

Current Discount
Amount off the current price Cogeco is available for.
Intrinsic value
>50%
Share price is CA$105.26 vs Future cash flow value of CA$367.91
Current Discount Checks
For Cogeco to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cogeco's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Cogeco's share price is below the future cash flow value, and 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's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cogeco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CGO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-08-31) in CAD CA$4.20
TSX:CGO Share Price ** TSX (2019-11-15) in CAD CA$105.26
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.

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

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

= 105.26 ÷ 4.20

25.08x

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

  • Cogeco is overvalued based on earnings compared to the CA Media industry average.
  • Cogeco is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Cogeco's expected growth come at a high price?
Raw Data
TSX:CGO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
35.1%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:CGO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.08x ÷ 35.1%

0.71x

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

  • Cogeco is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Cogeco's assets?
Raw Data
TSX:CGO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-08-31) in CAD CA$47.22
TSX:CGO Share Price * TSX (2019-11-15) in CAD CA$105.26
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:CGO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 105.26 ÷ 47.22

2.23x

* Primary Listing of Cogeco.

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

  • Cogeco is overvalued based on assets compared to the CA Media industry average.
X
Value checks
We assess Cogeco'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 has a total score of 3/6, 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 expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

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
35.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cogeco expected to grow at an attractive rate?
  • Cogeco's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Cogeco's earnings growth is expected to exceed the Canada market average.
  • Cogeco's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CGO Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CGO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 35.1%
TSX:CGO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 2.2%
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:CGO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CGO Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-08-31 2,554 151 1
2020-08-31 2,512 135 1
2019-11-16
TSX:CGO Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-08-31 2,444 932 68
2019-05-31 2,702 1,648 39
2019-02-28 2,683 825 92
2018-11-30 2,629 821 124
2018-08-31 2,262 704 151
2018-05-31 2,248 730 147
2018-02-28 2,249 795 146
2017-11-30 2,281 845 110
2017-08-31 2,348 977 109
2017-05-31 2,341 891 116
2017-02-28 2,316 834 -31
2016-11-30 2,308 792 -24

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cogeco's earnings are expected to grow significantly at over 20% yearly.
  • Cogeco's revenue is expected to grow by 2.2% 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:CGO 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 1 Analyst Estimates (S&P Global) See Below

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

TSX:CGO Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-08-31 8.81 8.81 8.81 1.00
2020-08-31 8.74 8.74 8.74 1.00
2019-11-16
TSX:CGO Past Financials Data
Date (Data in CAD Millions) EPS *
2019-08-31 4.20
2019-05-31 2.40
2019-02-28 5.65
2018-11-30 7.58
2018-08-31 9.21
2018-05-31 8.95
2018-02-28 8.89
2017-11-30 6.62
2017-08-31 6.56
2017-05-31 6.99
2017-02-28 -1.87
2016-11-30 -1.42

*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.
  • Unable to establish if Cogeco will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Cogeco'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 has a total score of 3/6, 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 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'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's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Cogeco's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Cogeco's 1-year earnings growth is negative, it can't be compared to the CA Media industry average.
Earnings and Revenue History
Cogeco'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 Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CGO 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 2,444.06 67.78
2019-05-31 2,701.97 38.93
2019-02-28 2,683.23 92.02
2018-11-30 2,628.80 123.68
2018-08-31 2,262.03 150.82
2018-05-31 2,248.27 146.91
2018-02-28 2,249.05 146.44
2017-11-30 2,281.32 109.60
2017-08-31 2,347.68 108.99
2017-05-31 2,341.20 116.47
2017-02-28 2,315.56 -31.25
2016-11-30 2,307.59 -23.78 -0.05
2016-08-31 2,307.40 -29.35
2016-05-31 2,289.45 -33.74 -0.31
2016-02-29 2,273.23 106.51
2015-11-30 2,231.68 88.05 -0.06
2015-08-31 2,187.16 89.63
2015-05-31 2,157.60 79.99 0.31
2015-02-28 2,135.88 68.88
2014-11-30 2,117.45 71.40 0.10
2014-08-31 2,096.04 67.68
2014-05-31 2,076.23 65.78
2014-02-28 2,044.60 71.50
2013-11-30 1,984.62 68.79
2013-08-31 1,834.26 64.26
2013-05-31 1,686.23 64.28
2013-02-28 1,539.83 66.40
2012-11-30 1,426.94 24.76

*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 has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cogeco used its assets less efficiently than the CA Media industry average last year based on Return on Assets.
  • Cogeco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cogeco'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 has a total score of 1/6, 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'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's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cogeco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cogeco's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cogeco'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 Company Filings, last reported 2 months ago.

TSX:CGO Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-08-31 2,623.88 3,462.02 559.39
2019-05-31 2,607.81 3,524.85 448.42
2019-02-28 2,515.88 3,903.32 60.16
2018-11-30 2,480.60 4,032.86 71.54
2018-08-31 2,411.69 3,901.09 86.35
2018-05-31 2,325.19 3,907.53 63.56
2018-02-28 2,266.05 4,077.69 208.27
2017-11-30 1,725.11 2,690.25 156.75
2017-08-31 1,671.42 2,615.16 266.28
2017-05-31 1,635.31 2,814.13 146.66
2017-02-28 1,573.50 2,805.43 52.32
2016-11-30 1,512.14 2,964.69 47.06
2016-08-31 1,444.17 2,948.72 68.34
2016-05-31 1,508.28 3,122.67 91.95
2016-02-29 1,913.20 3,231.11 62.48
2015-11-30 1,851.61 3,320.19 41.48
2015-08-31 1,800.72 3,378.75 164.19
2015-05-31 1,716.63 3,033.48 74.72
2015-02-28 1,663.59 3,067.84 17.92
2014-11-30 1,594.27 2,971.73 16.55
2014-08-31 1,539.09 2,820.29 63.83
2014-05-31 1,489.65 2,933.77 30.53
2014-02-28 1,471.44 3,082.77 54.77
2013-11-30 1,414.39 3,066.10 26.53
2013-08-31 1,368.22 3,015.12 43.79
2013-05-31 1,342.88 3,100.18 39.64
2013-02-28 1,309.26 3,108.82 42.27
2012-11-30 1,236.06 2,424.92 9.28
  • Cogeco's level of debt (131.9%) 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 (183.3% vs 131.9% today).
  • Debt is well covered by operating cash flow (26.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.6x coverage).
X
Financial health checks
We assess Cogeco'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 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'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
1.81%
Current annual income from Cogeco dividends.
If you bought CA$2,000 of Cogeco shares you are expected to receive CA$36 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's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2%).
  • Cogeco'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:CGO 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 1 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:CGO Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-08-31
2020-08-31
2019-11-16
TSX:CGO Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-10-30 1.900 1.866
2019-07-10 1.720 1.807
2019-04-09 1.720 2.063
2019-01-10 1.720 2.406
2018-10-31 1.720 2.844
2018-07-11 1.560 2.534
2018-04-12 1.560 2.459
2018-01-10 1.560 2.143
2017-11-02 1.560 1.723
2017-04-06 1.360 1.853
2017-01-11 1.360 2.221
2016-11-02 1.360 2.517
2016-07-06 1.180 2.320
2016-04-13 1.180 2.173
2015-10-29 1.180 2.205
2015-10-28 1.180 2.107
2015-07-15 1.020 1.880
2015-04-08 1.020 1.884
2015-01-13 1.020 1.711
2014-10-31 1.020 1.715
2014-07-09 0.880 1.601
2014-04-09 0.880 1.558
2014-01-13 0.880 1.718
2013-07-10 0.760 1.612
2013-04-15 0.760 1.831
2013-01-14 0.760 1.876
2012-07-12 0.720 2.136
2012-04-12 0.720 1.573
2012-04-11 0.720 1.371
2011-10-27 0.720 1.478
2011-07-07 0.560 1.307
2011-04-08 0.480 1.143
2011-01-13 0.480 1.196
2010-10-27 0.480 1.335
2010-07-08 0.400 1.299
2010-01-13 0.400 1.309
2009-10-29 0.400 1.500
2009-07-10 0.320 1.411
2009-04-09 0.320 1.415
2009-01-14 0.320 1.331

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's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Cogeco'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 afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cogeco has a total score of 3/6, 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'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 and age of the Cogeco management team in years:

3.8
Average Tenure
55.5
Average Age
  • The tenure for the Cogeco management team is about average.
Management Team

Louis Audet

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

Patrice Ouimet

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

Christian Jolivet

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

Rich Shea

TITLE
CEO & President of Atlantic Broadband Inc
COMPENSATION
CA$3M
AGE
57
TENURE
4.8 yrs

Ken Smithard

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

Philippe Jetté

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

Luc Noiseux

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

Marie-Hélène Labrie

TITLE
Senior VP & Chief Public Affairs and Communications Officer
TENURE
1 yrs

Philippe Bonin

TITLE
Vice President of Corporate Development
TENURE
3.7 yrs

Diane Nyisztor

TITLE
Senior VP & Chief Human Resources Officer
AGE
52
TENURE
4.1 yrs
Board of Directors Tenure

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

1
Average Tenure
64
Average Age
  • The average tenure for the Cogeco 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

David McAusland

TITLE
Independent Director
COMPENSATION
CA$78K
AGE
65
TENURE
21.8 yrs

Louis Audet

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

Normand Legault

TITLE
Independent Director
COMPENSATION
CA$121K
AGE
64
TENURE
7.8 yrs

Mary-Ann Bell

TITLE
Independent Director
COMPENSATION
CA$130K
AGE
59
TENURE
3.8 yrs

James Cherry

TITLE
Lead Director
COMPENSATION
CA$134K
AGE
65
TENURE
0.8 yrs

Samih Elhage

TITLE
Independent Director
AGE
58
TENURE
0.8 yrs

Arun Bajaj

TITLE
Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Cogeco individual insiders have only sold shares in the past 3 months.
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 -640 CA$94.89 CA$-60,730
19. Jul 19 Sell Andrée Pinard Individual 16. Jul 19 16. Jul 19 -314 CA$94.45 CA$-29,657
19. Jul 19 Sell Christian Jolivet Individual 16. Jul 19 16. Jul 19 -765 CA$94.35 CA$-72,178
18. Jul 19 Sell Patrice Ouimet Individual 15. Jul 19 15. Jul 19 -4,000 CA$91.24 CA$-356,447
15. Jul 19 Sell Pierre Maheux Individual 15. Jul 19 15. Jul 19 -444 CA$90.64 CA$-40,244
13. May 19 Sell Nathalie Dorval Individual 28. Feb 19 28. Feb 19 -20 CA$71.90 CA$-1,438
23. Apr 19 Sell Philippe Bonin Individual 18. Apr 19 18. Apr 19 -373 CA$81.10 CA$-30,250
01. Mar 19 Sell Nathalie Dorval Individual 28. Feb 19 28. Feb 19 -400 CA$72.15 CA$-28,860
01. Mar 19 Sell Elizabeth Alves Individual 28. Feb 19 28. Feb 19 -376 CA$72.20 CA$-27,143
X
Management checks
We assess Cogeco'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 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

What Kind Of Share Price Volatility Should You Expect For Cogeco Inc. (TSE:CGO)?

(TSE:CGO), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). … What this means for you: One potential advantage of owning low beta stocks like Cogeco is that your overall portfolio won't be too sensitive to overall market movements.

Simply Wall St -

What To Know Before Buying Cogeco Inc. (TSE:CGO) For Its Dividend

While Cogeco's 1.8% dividend yield is not the highest, we think its lengthy payment history is quite interesting. … Cogeco's cash payout ratio last year was 2.5%, which is quite low and suggests that the dividend was thoroughly covered by cash flow. … Still, we'd vastly prefer to see EPS growth when researching dividend stocks.

Simply Wall St -

Only 3 Days Left To Cash In On Cogeco Inc. (TSE:CGO) Dividend

So we need to check whether the dividend payments are covered, and if earnings are growing. … TSX:CGO Historical Dividend Yield, July 19th 2019 Have Earnings And Dividends Been Growing? … It might be worth researching if the company is reinvesting in growth projects that could grow earnings and dividends in the future, but for now we're not all that optimistic on its dividend prospects.

Simply Wall St -

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

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$482.6m CA$308.0m CA$231.8m CA$193.1m CA$171.6m CA$159.2m CA$152.1m CA$148.3m CA$146.5m CA$146.1m Growth Rate Estimate Source Analyst x1 Est @ -36.17% Est @ -24.74% Est @ -16.73% Est @ -11.13% Est @ -7.21% Est @ -4.46% Est @ -2.54% Est @ -1.19% Est @ -0.25% Present Value (CA$, Millions) Discounted @ 12.48% CA$429.1 CA$243.5 CA$162.9 CA$120.6 CA$95.3 CA$78.6 CA$66.8 CA$57.9 CA$50.8 CA$45.1 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$1.4b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$146m × (1 + 1.9%) ÷ (12.5% – 1.9%) = CA$1.4b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$1.4b ÷ ( 1 + 12.5%)10 = CA$436.48m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$1.79b. … TSX:CGO Intrinsic value, July 15th 2019 The 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 -

Could Cogeco Inc.'s (TSE:CGO) Investor Composition Influence The Stock Price?

Private Company Ownership Our data indicates that Private Companies hold 12%, of the company's shares. … Private companies may also have a strategic interest in the company. … Public Company Ownership It appears to us that public companies own 37% of CGO.

Simply Wall St -

What Does Cogeco Inc.’s (TSE:CGO) 8.7% ROCE Say About The Business?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … 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: 0.087 = CA$608m ÷ (CA$7.4b - CA$404m) (Based on the trailing twelve months to February 2019.) So, Cogeco has an ROCE of 8.7%. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

Did Cogeco's (TSE:CGO) Share Price Deserve to Gain 51%?

There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During the three years of share price growth, Cogeco actually saw its earnings per share (EPS) drop 3.9% per year. … It is important to consider the total shareholder return, as well as the share price return, for any given stock.

Simply Wall St -

Should You Be Holding Cogeco Inc. (TSE:CGO)?

(TSE:CGO), there's is a well-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. … TSX:CGO Historical Dividend Yield, May 20th 2019 Next Steps: For Cogeco, I've put together three important factors you should look at: Future Outlook: What are well-informed industry analysts predicting for CGO’s future growth? … Take a look at our free research report of analyst consensus for CGO’s outlook.

Simply Wall St -

Should You Be Impressed By Cogeco Inc.'s (TSE:CGO) ROE?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … How Do You Calculate Return On Equity … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do You Like Cogeco Inc. (TSE:CGO) At This P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Looking at earnings over the last twelve months, Cogeco has a P/E ratio of 10.88. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in Canada and the United States. It operates in two segments, Communications and Other. The company provides Internet, video, and telephony services; and colocation, network connectivity, hosting, cloud, and managed services. It also owns and operates 23 radio stations; and Cogeco News, a news agency. The company provides its services under the Cogeco Connexion name in Quebec and Ontario; and Atlantic Broadband name in the United States. It serves residential and business customers. The company was founded in 1957 and is headquartered in Montreal, Canada.

Details
Name: Cogeco Inc.
CGO
Exchange: TSX
Founded: 1957
CA$1,682,637,835
15,985,539
Website: http://corpo.cogeco.com
Address: Cogeco Inc.
5, Place Ville Marie,
Suite 1700,
Montreal,
Quebec, H3B 0B3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CGO Subordinate Voting Shares The Toronto Stock Exchange CA CAD 03. Dec 1986
OTCPK CGEC.F Subordinate Voting Shares Pink Sheets LLC US USD 03. Dec 1986
BST 76E Subordinate Voting Shares Boerse-Stuttgart DE EUR 03. Dec 1986
Number of employees
Current staff
Staff numbers
4,520
Cogeco 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.