# Cogeco Inc. (CGO.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Communication Services / Diversified Telecommunication Services. Price C$56.47, market value C$535 million.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Cogeco 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.
- **PEG: 13.20**. A PEG of 13.20 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.1×**. The shares trade at 1.1× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 68.3%** (5-yr avg 56.2%). Free cash flow equals 68.3% of the market value, above its five-year average of 56.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Operating margin: 25.4%**. 25.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 2.8%**. 2.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.8%**. 9.8% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 11.3%**. Return on all capital, debt included, is 11.3%.
- **Return on assets: -3.5%**. Each dollar of assets produces -3.5% of profit.

## Growth
- **Revenue growth (1 yr): -2.1%** (3-yr 0.1%/yr, 5-yr 3.9%/yr). Revenue fell 2.1% over the last year, against 3.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 3.0%** (3-yr -32.6%/yr, 5-yr -18.9%/yr). Earnings per share rose 3.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 23.3%/yr**. Free cash flow has compounded at 23.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 5.46**. Debt is 5.46 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: net cash**. Cogeco Inc. holds more cash than debt.
- **Interest coverage: 2.8×**. Operating profit covers interest 2.8×, thin but manageable.
- **Current ratio: 0.49** (quick 0.49). 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: 0.69**. A Z-score of 0.69 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: 6.99%** (C$3.88 per share, trailing). Cogeco Inc. yields 6.99%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 41%** (10% of free cash flow). 41% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 16**. 16 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 13.8%/yr** (1-yr 7.7%). The dividend has compounded at 13.8% a year over five years, doubling roughly every 5 years at that pace.

## Price and momentum
- **Total return (1 yr): -1.7%** (YTD -7.5%, 3-mo -10.2%). The shares are down 1.7% over twelve months including dividends.
- **From 52-week high: -26.7%** (2.3% above the low). Trading 27% 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): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): 0.28** (volatility 23%). Beta of 0.28 against the S&P/TSX Composite: the shares move much less than the market.

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

Not investment advice.