# Cogeco Communications Inc. (CCA.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Communication Services / Diversified Telecommunication Services. Price C$60.48, market value C$2.5 billion.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Cogeco Communications Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.4×**. The shares trade at 1.4× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 14.5%** (5-yr avg 12.9%). Free cash flow equals 14.5% of the market value, in line with its five-year average of 12.9%. Above 5% is generally attractive.

## Profitability
- **Operating margin: 26.1%**. 26.1% of revenue is left after running the business, an exceptional level.
- **Net margin: 11.1%**. 11.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.2%**. 10.2% on shareholders' equity is solid.
- **Return on invested capital: 8.0%**. Return on all capital, debt included, is 8.0%.
- **Return on assets: -11.5%**. Each dollar of assets produces -11.5% of profit.

## Growth
- **Revenue growth (1 yr): -2.2%** (3-yr 0.1%/yr, 5-yr 4.1%/yr). Revenue fell 2.2% over the last year, against 4.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -2.9%** (3-yr -5.8%/yr, 5-yr -0.2%/yr). Earnings per share fell 2.9%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 27.8%/yr**. Free cash flow has compounded at 27.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.44**. Debt is 1.44 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: net cash**. Cogeco Communications Inc. holds more cash than debt.
- **Interest coverage: 2.9×**. Operating profit covers interest 2.9×, thin but manageable.
- **Current ratio: 0.47** (quick 0.47). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.22**. A Z-score of 1.22 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 6.53%** (C$3.88 per share, trailing). Cogeco Communications Inc. yields 6.53%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 48%** (44% of free cash flow). 48% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 22**. 22 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 9.5%/yr** (1-yr 7.7%). The dividend has grown 9.5% a year over five years.
- **Shareholder yield: 6.9%**. Dividends plus net buybacks return 6.9% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (11 analysts). 11 analysts cover Cogeco Communications Inc.; the consensus is buy, with an average price target of C$71.18 (+18% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -1.0%** (YTD -4.7%, 3-mo -4.9%). The shares are down 1.0% over twelve months including dividends.
- **From 52-week high: -21.9%** (3.5% above the low). Trading 22% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 0.31** (volatility 24%). Beta of 0.31 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CCA.TO · Page: https://foliofundamentals.com/stocks/cca.to

Not investment advice.