Latest news with #Cogeco
Globe and Mail
14 hours ago
- Business
- Globe and Mail
Ottawa must stop the CRTC's misguided, dogmatic internet decision
Frédéric Perron is the president and chief executive officer of Cogeco. We will one day look back at 2025 and marvel at how Canadians from coast to coast, and their governments, came together to confront a new economic reality by doing everything possible to accelerate economic growth, increase productivity and remove regulatory barriers to investment and innovation. All Canadians, that is, except for the CRTC. On Friday, June 20, the CRTC tripled down on a decision that would let the Big Three telecommunications firms resell services through the internet networks of their rivals. That will lead to less competition and investment in the broadband infrastructure we need to thrive as a country. The wholesale framework was intended to benefit smaller players who lack the infrastructure they need to compete effectively. It was meant to allow them to access – and sell their services through – the infrastructure of bigger rivals. That framework was not intended for the reverse – for Telus, Rogers and Bell to not only resell each other's networks but those of their much smaller competitors as well. Under this policy, the Big Three can use regulation, which is normally designed to curb the dominance of big players, to get even bigger. Despite overwhelming evidence that continuing this flawed policy will hurt investment and competition – and broad opposition from competitors across the country – the CRTC is sticking to it. The CRTC's approach directly threatens crucial investments, hurts competition and undermines long-term affordability for Canadians. As telecommunications are now fundamental to all major national projects – from housing to AI – this decision undermines the very foundations of Prime Minister Mark Carney's agenda and Canada's economic future. Local and regional internet providers, unions, consumer groups, competition experts and others have all called upon the CRTC to exclude the Big Three from leveraging regulation to access other providers' networks. The regulator's decision ignores all those voices. Why are Canada's largest telecom companies selling stakes in their core infrastructure? It is now time for the cabinet and Industry Minister Mélanie Joly to step in and overturn the CRTC decision to save real, long-term competition in this vital arena. The Big Three already control all but a small fraction of the Canadian telecom market. The CRTC's flawed policy gives them a regulatory tool to further expand their market dominance, allowing them to ride on the networks of smaller, regional competitors at subsidized rates. This will translate into less choice and fewer affordable services. Regional telecommunication providers such as Cogeco play a key role in bringing competition and reliable connectivity to thousands of communities across the country. Our future growth – and the future of internet competition in Canada – is being challenged by this misguided CRTC decision. This will have significant, adverse consequences for Canadian consumers and communities: reduced network investment, compromised rural connectivity, fewer jobs in regional communities and, ultimately, less choice and higher prices. Canadians have elected a government focused on strengthening Canada's economy and ensuring Canadians have the tools they need to preserve their economic sovereignty and expand opportunity. It's time for Ottawa to intervene to maintain the conditions for sustainable competition and for Canada to win.
Cision Canada
18-06-2025
- Business
- Cision Canada
Cogeco and Cogeco Communications Schedule the Release of their Financial Results for the Third Quarter of Fiscal 2025 and Related Conference Call Français
MONTRÉAL, June 18, 2025 /CNW/ - Cogeco Inc. (TSX: CGO) and Cogeco Communications Inc. (TSX: CCA) (collectively "Cogeco") plan to release their financial results for the third quarter of fiscal 2025, which ended May 31, 2025, on Tuesday, July 15, 2025, after market closing. The companies will hold a conference call on Wednesday, July 16, 2025 at 8:00 a.m. (Eastern Daylight Time) to discuss their financial and operating results. A live audio webcast of the analyst call will be available on both the Investor Relations and the Events and Presentations pages of Cogeco's website. Financial analysts will be able to access the live conference call and ask questions. Media representatives may attend as listeners only. A recording of the conference call will be available on Cogeco's website for a three-month period. Please use the following dial-in number to access the conference call 10 minutes before the start of the conference: Local - Toronto: 1 289 514-5100 Toll Free - North America: 1 800 717-1738 To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc. SOURCE Cogeco Inc.
Yahoo
18-05-2025
- Business
- Yahoo
Cogeco - An ultra-cheap Income Stock
The following stats of Cogeco Inc. (TSX:CGO) a Telecom company in Quebec, Canada and operating in both Canada and the US, caught my attention. PE: 3.59 Dividend yield: 6.5% FCF Yield: 52.9% PB: 0.61 These ratios suggest that the company is very cheap. Cogeco Inc. is a Canadian telecommunications and media company that operates in Canada and the United States via its subsidiary Cogeco Communications (TSX:CCA) which also has its own stock listing. Cogeco Communications provides a variety of services to residential and business customers, including: - Internet Services: Cogeco offers high-speed internet access through its hybrid fibre coaxial cable network, ensuring reliable and fast connections for activities like streaming, gaming, and remote work - Television Services: The company provides cable TV with high-definition channels, on-demand options, and customizable packages. - Phone Services: Cogeco delivers landline and mobile telephony services with features such as voicemail, call forwarding, and conference calling. - Wireless Services: In the U.S., Cogeco also offers wireless services under the Breezeline brand. It also plans to offer wireless service in Canada. It should be noted though that Cogeco Communications Inc. has a much larger market cap of C$2.7 Billion than that of the parent (C$561 million). Cogeco has a 80% controlling interest in Cogeco Communication and owns 28% of the equity. This means that Cogeco Inc. stock is selling at about 36% discount to Cogeco Communication's stock. Cogeco also owns Cogeco Media which is active in Radio broadcasting in the province of Quebec, Canada. Cogeco Inc. is controlled primarily by the Audet family through their holding company, Gestion Audem Inc., which holds 79.78% of the voting rights in Cogeco Inc. Cogeco Inc. is a publicly traded company listed on the Toronto Stock Exchange (TSX: CGO), but its multiple voting shares ensure that effective control remains with Gestion Audem Inc. Cogeco operates under different brands depending on the region: Cogeco Connexion in Canada (Ontario and Quebec). Breezeline in the United States (serving 13 states). The company generates revenue primarily through subscription-based services, advertising, equipment sales, installation fees, and business solutions. It also invests in innovative technologies to maintain its competitive edge in the telecommunications industry. Growth Rates per share are good over 10 year and 5 year periods. These are excellent numbers when seen the context of a generally low-growth and mature industry. Growth Rates (Per Share) Fiscal Period 10-Year 5-Year 1-Year Revenue 6.50% 11.60% 44.10% EPS without NRI 6.80% 14.80% 28.50% EBIT 8.80% 10.50% 39.60% EBITDA 8.90% 10.00% 54.70% Free Cash Flow -0.90% -12.80% 68.60% Dividends 14.00% 14.90% 12.10% Book Value 9.50% 11.50% 9.00% Cogeco Inc. (TSX: CGO) is executing a three-year strategic transformation (20242027) focused on increasing agility, efficiency, and growth. The company is streamlining operations by merging its U.S. and Canadian telecom teams into a unified North American structure, enhancing cross-border collaboration and creating centralized hubs for digital innovation and advanced analytics. A key growth driver is its planned entry into the Canadian wireless market in 2025 through the MVNO framework, complementing ongoing U.S. wireless expansion in regions like Ohio, where it aims to scale sales and optimize high-margin offerings. MVNO stands for Mobile Virtual Network Operator. It is a company that provides mobile phone services but does not own the wireless infrastructure that it uses. It plans to bundle wireless service with its wireline service. Cogeco is prioritizing digital transformation, modernizing networks, digitizing customer interactions, and leveraging analytics to improve decision-making while advancing rural connectivity projects. Financially, the company targets $100M+ in annual synergies through cost efficiencies and operational streamlining, alongside disciplined capital allocation to support EBITDA margin expansion and sustainable free cash flow. Customer-centric initiatives remain central, with a focus on boosting internet subscriber growth in Canada (via Cogeco and Oxio brands), improving U.S. retention, and enhancing service delivery. Despite near-term capital expenditures, By balancing innovation, market expansion, and shareholder returns, Cogeco aims to solidify its position as a small but nimble competitor in North America's evolving telecom sector. Cogeco does carry a large debt load (Debt/Equity is 6.04). Telecom is a capital intensive business especially now as it rolls out Fiber to the Premises (FTTP). It is also progressing its wireless service selectively in its service area in the US and soon Canada. However management is predicting that capital expenditure will decline in the near future and this will increase free cash flow. Debt/EBITDA is fair at 3.72. Cogeco plans to bring this to 3.0. Interest coverage (operating income/ interest expense) is 2.76. Given stable operating cash flow this debt is not alarming. Cogeco Inc. holds debt, and its subsidiary, Cogeco Communications Inc. (CCA), also has its own debt. While the debt of Cogeco Communications Inc. is non-recourse to Cogeco Inc., Cogeco Inc. includes CCA's debt in its leverage calculations. Cogeco raised its quarterly dividend by 8.0% to $0.922/share, signaling confidence in cash flow stability. Cogeco has been paying dividend since 1989 with no dividend reduction in the last 19 years. The company has a forward dividend yield of 6.69%. The company's recent payout ratio was only 0.23, so it has good capacity to expand its dividend. 5 year dividend growth rate is 14.9%. Cogeco's dividend metrics compares well against it North American peers. Ticker Current Price Company Earnings Yield % Dividend Yield % Dividend Yield % (10y Median) Dividend Payout Ratio Continuous Dividend Start Year 5-Year Dividend Growth Rate (Per Share) TSX:CGO 64.57 Cogeco Inc 13.65 5.61 2.29 0.23 1989 14.9 TSX:QBR.B 37.65 Quebecor Inc 8.74 3.52 1.8 0.4 2004 23.1 TSX:RCI.B 35.71 Rogers Communications Inc 9.05 5.6 3.34 0.4 2003 0 TSX:BCE 30.11 BCE Inc 1.39 13.25 5.39 1.46 1989 4.8 TSX:T 22.07 TELUS Corp 3.58 7.17 4.44 1.92 1999 6.8 TSX:CCA 68.37 Cogeco Communications Inc 11.17 5.29 2.42 0.39 2004 10.2 T 27.72 AT&T Inc 5.88 4 7.31 0.5 1985 -14.7 VZ 43.99 Verizon Communications Inc 9.55 6.13 4.72 0.58 1985 2 The chart below illustrates Cogeco's share price in Canadian dollars over the past five years, compared to the median justified price ratios derived from historical price multiples (PE Ratio, PS Ratio, PB Ratio, and Price-to-Free-Cash-Flow). The chart clearly demonstrates a significant discount in Cogeco's share price relative to recent multiples. TSX:CGO Data by GuruFocus Warning! GuruFocus has detected 6 Warning Signs with TSX:CGO. The following table compares selected metrics for Cogeco (and its subsidiary Cogeco Communications) with its Canadian peers and a couple of US telecom companies. Cogeco has lower PE and EV/EBITDA compared to this set. Note also the higher 5-year EBITDA growth rate. Ticker Company Current Price Market Cap EV-to-EBITDA EV-to-EBITDA(10y Median) PE Ratio without NRI 5-Year EBITDA GrowthRate (Per Share) TSX:CGO Cogeco Inc 64.57 438.85 6.02 5.82 4.2 10 TSX:CCA Cogeco Communications Inc 68.37 2,060.86 5.97 7.01 7.49 8.2 TSX:QBR.B Quebecor Inc 37.65 6,279.58 7.15 7.66 11.23 7 TSX:RCI.B Rogers Communications Inc 35.71 14,092.67 7.23 9.25 7.1 7.9 TSX:BCE BCE Inc 30.11 19,867.66 8.67 9.13 11.03 -2.8 TSX:T TELUS Corp 22.07 23,920.03 9.31 9.09 26.78 0 T AT&T Inc 27.72 199,462.09 7.83 6.57 12.49 -1.8 VZ Verizon Communications Inc 43.99 185,473.05 7.33 7.94 9.5 -0.4 Gurufocus DCF Calculator (below) also indicates a large margin of safety even after using a conservative growth rate of 3% and a discount rate of 10%. Owner Earnings is a cash flow concept introduced by Warren Buffett (Trades, Portfolio) in his 1986 Berkshire Hathaway company letter to shareholders. At this time that companies were not required to produce a cash flow statement nor were stock based compensation such a big concern. Buffet's formulations of owners earnings removes non-cash distortions from earnings to focuses the investors attention on how much cash they are getting as partial owners of the company at the end of the period. Buffet explained Owners Earnings as follows: Owner Earnings = (a) Net Income plus (b) depreciation, depletion, amortization, and other non-cash charges minus (c) average annual maintenance capital expenditures. Owners Earnings is similar to free cash flow, but I think a superior metric because it starts from net earnings, so takes stock-based compensation as well as maintenance capex into account. Unlike Free Cash Flow, owner's earnings includes stock based compensation and maintenance capex which can be a significant expense for some companies. The following table summarizes Cogeco's owner earnings over the last 10 years. Note the owner yield is the reciprocal of price to owner earnings. Another way to think about this is that investors can payback an investment in Cogeco stock in less than 4 years of owner earnings. Cogeco Inc Now 2024-08 2023-08 2022-08 2021-08 2020-08 2019-08 2018-08 2017-08 2016-08 2015-08 Price-to-Owner-Earnings 3.96 2.81 17.72 2.4 3.81 4.46 5.31 15.38 3.58 4.14 3.84 Owner Yield 25.25% 35.59% 5.64% 41.67% 26.25% 22.42% 18.83% 6.50% 27.93% 24.15% 26.04% Warren Buffett (Trades, Portfolio)'s equity bond method is a mental model for valuing stocks by comparing them to bonds, focusing on the stock's earnings yield as if it were a bond's yield. The approach involves treating a stock as if it pays out its earnings as a coupon, with the earnings yield calculated by dividing earnings per share (EPS) by the share price. For example, if a company has an EPS of $5 and a share price of $100, the earnings yield is 5%. Investors then compare this yield to the yield on a risk-free government bond, such as a US Treasury. If the stock's earnings yield is higher, and the company is of high quality with good growth prospects, the stock may be undervalued or a better investment than the bond. Unlike bonds, which pay a fixed coupon, a stock's earnings can grow over time, meaning the yield on your original investment can increase as the company's earnings grow, compounding your returns. Buffett uses this method to identify companies that can compound returns over many years, focusing on high-quality businesses with durable competitive advantages and the ability to reinvest earnings at high rates of return. However, the equity bond method is not a standalone tool; Buffett also considers other factors such as return on equity, debt levels, and the company's competitive moat. In summary, the equity bond method reframes stock investing as buying a bond with a variable, potentially growing yield. By comparing a stock's earnings yield to bond yields and factoring in the company's growth prospects, investors can make more rational, businesslike decisions about where to allocate capital for the best long-term returns. While I am not confident that Cogeco has an economic moat which would attract an investor like Buffet it does have an enormous earnings yield which has been in place for a while. Earning yield is the reciprocal of the PE Ratio expressed as a percentage. Cogeco's PE Ratio (without NRI, or Non-recurring items) is 3.53. This works out to an earnings yield of 28.3%. Cogeco's Shiller PE is 7.13. (Shiller PE also known as E10 is a concept invented by Prof. Robert Shiller. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.) Converting Shiller PE to Shiller Earnings yield we get 14.02%. Both these earnings yield are far above the 10 years US Treasury bond yield which is currently at 4.5% and the analogous Canada 10 year bond yield is 3.46%. This would indicate an healthy margin of safety. Cogeco's 10-year median Return on Equity (ROE%) is quite good at about 17%. All in all, while it does not appear that Cogeco has an economic moat The company's financial stability and regional strength are positives, but they do not translate into the kind of durable, structural advantages that would protect it from competition over the long term. Investors should view Cogeco as a solid, income-generating telecom stock, but not as a moat-protected business. It is a capital intensive business subject to high competition. Cogeco appears to be a solid low growth income stock which pays a large and reliable dividend of 6.24%. It is also buying back stock with 3 year buyback ratio of 15.9. The company is family controlled and seem to have good stewardship. Earnings per share grew by over 28% over the past year and 6.8% CAGR over the past 10 years. Debt is high but the company is working to bring it down. It is Trading at good value compared to peers and industry. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Hamilton Spectator
05-05-2025
- Business
- Hamilton Spectator
Kearney mayor says her community among those ‘snookered' as high-speed internet project delayed, again
Few things are as irritating as trying to access the internet, only to be greeted with a spinning loading circle. For most of us, the annoyance is only occasional, but for residents of Kearney, the experience is all too common. It comes as no surprise, then, that the region was excited upon learning in 2023 the province was planning on bringing high-speed internet to the community. Nearly two years later, they're still waiting. 'I'm sure there have been delays for all kinds of good reasons,' said Kearney Mayor Cheryl Philip. 'But it's just ridiculous. We're in a technological world now … and Northern Ontario and rural Ontario are just snookered when it comes to reliable internet.' The project is part of the broader, nearly $4-billion Ontario Connects initiative, which aims to bring high-speed internet to every community in Ontario by the end of 2025. The initiative partnered with eight internet providers to upgrade infrastructure. For Kearney, that provider is Cogeco Connexion, which received about $74.3 million in provincial and federal funds to upgrade internet service for an estimated 13,856 homes and businesses in Ontario, including 950 premises in Kearney. Philip first learned of the project in August 2023 at an Association of Ontario Municipalities conference. She asked for the project deadline and was told March 2024 — a date which would later be pushed to March 2025, she said. In April, she sent a letter to Parry Sound—Muskoka MPP Graydon Smith and was told the revised date was June 29. A map of Ontario Connects projects also shows that date. A June 29 deadline wasn't explicitly corroborated by Laurise Roy-Tremblay, a communications adviser for Cogeco. Instead, she said the two separate projects in Kearney are still in the permitting phase and construction would likely begin sometime this summer. 'We have a project underway … to bring Fibre-to-the-Home services to approximately 950 underserviced premises in Kearney, as well as neighbouring lake communities like Clear Lake, Bay Lake and Clam Lake,' Roy-Tremblay wrote in an emailed statement. 'Through the … Accelerated High Speed Internet Program (AHSIP), we're further extending our network to more rural parts of Kearney, including the areas around Sand Lake and Grass Lake. Our goal for both of these initiatives is to begin getting residents online before the end of 2025.' Not everyone will be connected at the same time. 'As portions of the work are completed, they will be brought online while construction progresses in other areas with the goal of beginning customer onboarding by the end of 2025,' Roy-Tremblay wrote. But waiting has real impacts on the community, from business development to basic municipal functions. 'We're trying to stream council meetings, and our internet goes down all the time,' Philip said. 'We've had to pass a motion in our bylaws allowing us to continue even if the internet goes down.' 'Businesses would be far happier to come somewhere they know has the services needed to operate,' she added. While much of Kearney is on the June 29 timeline, outlying areas like Sand Lake have an expected December 2025 completion date and are part of a different contract with the province. 'I feel we deserve better,' Philip said. 'With the kind of technology we have, no one should be without high-speed internet. It should be affordable, and it shouldn't be this difficult to get.' Jesse Cole is a freelance reporter writing with Metroland. This Almaguin News article was written under the Local Journalism Initiative. The Local Journalism Initiative is funded by the Government of Canada.
Yahoo
06-04-2025
- Business
- Yahoo
Cogeco (TSE:CGO) shareholders have endured a 8.6% loss from investing in the stock five years ago
The main aim of stock picking is to find the market-beating stocks. But in any portfolio, there will be mixed results between individual stocks. So we wouldn't blame long term Cogeco Inc. (TSE:CGO) shareholders for doubting their decision to hold, with the stock down 27% over a half decade. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the unfortunate half decade during which the share price slipped, Cogeco actually saw its earnings per share (EPS) improve by 18% per year. So it doesn't seem like EPS is a great guide to understanding how the market is valuing the stock. Alternatively, growth expectations may have been unreasonable in the past. Due to the lack of correlation between the EPS growth and the falling share price, it's worth taking a look at other metrics to try to understand the share price movement. We note that the dividend has remained healthy, so that wouldn't really explain the share price drop. While it's not completely obvious why the share price is down, a closer look at the company's history might help explain it. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). We know that Cogeco has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think Cogeco will earn in the future (free profit forecasts) . When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Cogeco, it has a TSR of -8.6% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. We're pleased to report that Cogeco shareholders have received a total shareholder return of 16% over one year. And that does include the dividend. There's no doubt those recent returns are much better than the TSR loss of 1.7% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Cogeco that you should be aware of before investing here. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
