The company has accumulated a total debt of 4.68 billion, with a debt to equity ratio (D/E) of 1.18. This is approximately average when compared to similar companies. Macroaxis provides an unbiased investment recommendation on Cogeco Communications, which should be used to supplement the current analysts and expert consensus on Cogeco Communications. Our trade advice engine assesses the company's growth potential exclusively from the perspective of an investor's current risk tolerance and investment horizon.
Further analysis
Cogeco Communications (CCS) presents an interesting investment opportunity from a valuation perspective. The company has a robust EBITDA of
1.39B and a healthy net income applicable to common shares of 423.3M, which is a positive sign for potential investors. The company's current valuation stands at
8.17B, with a market capitalization of
3.1B, indicating a significant potential for growth. Moreover, the price to earnings ratio of 12.08X and price to book ratio of 1.26X suggests that the stock is reasonably priced. The company's return on equity is 0.14, indicating that it has been effectively managing its assets to generate profits. However, investors should also consider the company's total debt of
4.68B and a debt to equity ratio of 1.18%, which could pose a risk in the long term.
We determine the current worth of Cogeco Communications using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cogeco Communications based exclusively on its
fundamental and basic
technical indicators. By analyzing Cogeco Communications's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Cogeco Communications's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cogeco Communications. We calculate exposure to Cogeco Communications's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Cogeco Communications's related companies.
Cogeco Communications Investment Alerts
Cogeco investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Cogeco Communications performance across your portfolios.Please check all
investment alerts for Cogeco
Cogeco Communications Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Cogeco value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cogeco Communications competition to find
correlations between indicators driving the intrinsic value of Cogeco.
Cogeco Communications Gross Profit
Cogeco Communications Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cogeco Communications previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Cogeco Communications Gross Profit growth over the last 10 years. Please check Cogeco Communications'
gross profit and other
fundamental indicators for more details.
Breaking down Cogeco Communications Indicators
Cogeco Communications reported the revenue of 2.9
B. Net Income was 453.76
M with profit before overhead, payroll, taxes, and interest of 1.42
B.
Margins Breakdown
Cogeco profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Cogeco Communications itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Cogeco Communications profit margins.
| Operating Margin | 21.46 |
| EBITDA Margin | 38.37 |
| Profit Margin | 11.56 |
Cogeco Communications Net Income Per Employee is very stable at the moment. Cogeco Communications Earnings Before Interest Taxes and Depreciation Amortization EBITDA is very stable at the moment. Additionally, Cogeco Communications Revenue Per Employee is increasing over the last 8 years. The recent value of Cogeco Communications Revenue Per Employee is 531,272. Cogeco Communications Net Income Per Employee is very stable at the moment. Cogeco Communications Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.
Additionally, Cogeco Communications Revenue Per Employee is increasing over the last 8 years. Cogeco Communications, a notable player in the Telecom Services industry, is demonstrating promising growth potential. The company's substantial net income from continuing operations, standing at a hefty **$453.8M**, is a testament to its robust
financial performance. Coupled with a trailing PE of 7.67 and a price to earnings ratio of 12.08X, the company's earnings per share (EPS) of 9.08 is impressive. Despite a negative net working capital of $459.1M and a current ratio of 1.29X, Cogeco Communications has managed to maintain a healthy operating margin of 0.27%. The company's total debt stands at a significant **$4.68B**, with long-term debt accounting for $4.3B of this. Despite this, the company's cash flow from operations is robust at $1.24B, and the firm holds an enterprise value of $8.2B. However, the probability of bankruptcy stands at a concerning 41.81%, indicating potential risk. Overall, with a five-year return of 2.32% and a beta of 0.49, Cogeco Communications appears to be a solid, albeit slightly risky, investment opportunity. .
Will price continue to roll up in August 2023?
Cogeco Communications stock has recently exhibited a market risk-adjusted performance of 1.12, indicating a potential decrease in volatility. Generally, a reduction in volatility suggests a more stable and less risky investment climate, which may lead to a bullish trend in the stock price. Therefore, given the
current market conditions, it's reasonable to anticipate that Cogeco Communications stock might maintain its upward momentum into August 2023, barring any unexpected market disruptions. However, investors should stay vigilant and monitor the market for any potential shifts. Cogeco Communications exhibits relatively low volatility, with a skewness of -0.24 and a kurtosis of 0.48. Nonetheless, we recommend that all investors independently research Cogeco Communications to ensure that all available information aligns with their expectations about its upside potential and anticipated future returns. Understanding varying
market volatility trends often assists investors in timing the market. The correct use of volatility indicators allows traders to gauge Cogeco Communications' stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility associated with bear markets can directly affect
Cogeco Communications' stock price, causing stress for investors as they watch the value of their shares decline.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Cogeco Communications appears to be a promising investment opportunity. The Naive Expected Forecast Value stands at
71.26, suggesting a potential for growth. The Analyst Overall Consensus is a 'Strong Buy', with two analysts giving it a 'Strong Buy' rating. This is further supported by the Possible Upside Price of
72.69, indicating a potential for price appreciation. However, investors should be cautious as the Valuation Real Value is currently at 38.69, which is significantly lower than the Valuation Market Value of 69.79. This discrepancy could indicate that the stock is overvalued. Nonetheless, the Analyst Highest Estimated Target Price is a staggering
20.2M, which is a strong indicator of the stock's potential. Therefore, while there may be some risks, Cogeco Communications could offer substantial returns for investors. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Cogeco Communications. Please refer to our
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