Is it a good company at a reasonable price? Personally, I would be worried about the debt of this company. Also, I would like to see the DPR go down. It reached its highest level in 2025, but analysts expect it to start going down in 2026. If you like to own this stock, it is, of course, best to buy when it is cheap. Currently this stock is cheap.
I do not own this stock of Cogeco Communications Inc (TSX-CCA, OTC-CGEAF). This stock was on the Money Sense list when I was looking for a new stock to follow.
When I was updating my spreadsheet, I noticed that the stock is quite volatile. It hit high of around $122.00 in July of 2021 and the stock is down 40% from there. Last year it had a low of around $51.00 and a high around $74.00, an 45% difference. This year there is a low around $60.00 and a high around $73.00 for an 22% change.
If you had invested in this company in December 2015, for $1,050.09 you would have bought 17 shares at $61.77 per share. In December 2025, after 10 years you would have received $428.20 in dividends. The stock would be worth $1,129.99. Your total return would have been $1,558.19. This would be a total return of 4.55% per year with 0.74% from capital gain and 3.82% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $61.77 | $1,050.09 | 17 | 10 | $428.20 | $1,129.99 | $1,558.19 |
The current dividend yield is good with dividend growth moderate. The current dividend yield is good (5% to 6% ranges) at 5.99%. The 5 and 10 year median dividend yields are moderate (2% to 4% ranges) at 4.35% and 2.45%. The historical dividend yield is low (below 2%) at 1.86%. I have 28 years of dividend data. The dividends were low until 2011. They were then moderate until 2023. It is only from 2024 the dividend yields go in the good range. The dividend increases are moderate (8% to 14% ranges) at 9.7% per year over the past 5 years. The last dividend increase occurred in 2025 and it was for 7.1%. This is a low increase (below 8%).
The Dividend Payout Ratios (DPR) are good. The DPR for 2025 for Earnings per Share (EPS) is good at 48% with 5 year coverage at 37%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 46% with 5 year coverage at 35%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 11% with 5 year coverage at 10%. The DPR for 2025 for Free Cash Flow (FCF) is good at 29% with 5 year coverage at 30%. The company put out a FCF value for 2025 of $517.2M and Market Screener estimates agrees with this.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 48.53% | 37.41% |
| AEPS | 46.45% | 34.88% |
| CFPS | 11.08% | 10.19% |
| FCF | 29.92% | 29.69% |
Debt Ratios need improving and debt is too high. The Long Term Debt/Market Cap Ratio for 2025 is far too high at 1.61 and currently at 1.57. The Liquidity Ratio for 2025 is too low at 0.65 and 0.40 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.78 and currently at 1.73. The Debt Ratio for 2025 is good at 1.68 and 1.68 currently. The Leverage and Debt/Equity Ratios for 2025 are too high at 3.07 and fine at 1.90 and currently at 3.04 and 1.87.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 1.61 | 1.57 |
| Intang/GW | 2.13 | 2.16 |
| Liquidity | 0.65 | 0.40 |
| Liq. + CF | 1.78 | 1.73 |
| Debt Ratio | 1.61 | 1.62 |
| Leverage | 3.07 | 3.04 |
| D/E Ratio | 1.90 | 1.87 |
The Total Return per year is shown below for years of 5 to 32 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 9.71% | -3.85% | -7.58% | 3.80% |
| 2015 | 10 | 10.17% | 4.55% | 0.74% | 3.74% |
| 2010 | 15 | 13.39% | 6.83% | 3.27% | 3.52% |
| 2005 | 20 | 21.50% | 8.25% | 5.12% | 2.87% |
| 2000 | 25 | 11.55% | 4.76% | 2.69% | 1.99% |
| 1995 | 30 | 10.25% | 9.63% | 6.99% | 2.74% |
| 1993 | 32 | 7.86% | 5.71% | 2.22% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 7.90, 8.86 and 9.82. The corresponding 10 year ratios are 8.47, 10.54 and 12.83. The corresponding historical ratios are 9.17, 11.32 and 13.56. The current ratio is 7.58 based on a stock price of $65.90 and an EPS estimate for 2026 of $8.69. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Adjusted Earning per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 7.57, 8.48 and 9.40. The corresponding 10 year ratios are 8.54, 10.47 and 12.41. The corresponding historical ratios are 9.87, 12.39 and 14.02. The current ratio is 7.57 based on a stock price of $65.90 and an EPS estimate for 2026 of $8.70. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $122.64. The 10-year low, median, and high median Price/Graham Price Ratios are 0.77, 0.99 and 1.17. The current ratio is 0.54 based on a stock price of $65.90. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 1.94. The current ratio is 0.86 based on a stock price of $65.90, Book Value of $3,226M, and Book Value per Share of $76.84. The current ratio is 56% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I also have a Book Value per Share estimate for 2026 of $93.16. This implies a ratio of 0.71 with a book value of $3,911.6M and a stock price of $65.90. This ratio is 64% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 4.16. The current ratio is 2.56 based on Cash Flow estimate for 2026 of $25.73, Cash Flow of $1,080.3M and a stock price of $65.90. The current ratio is 38% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 1.86%. The current dividend yield is 5.99% based on dividends of $3.948 and a stock price of $65.90. The current dividend yield is 222% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median dividend yield of 2.45%. The current dividend yield is 5.99% based on dividends of $3.948 and a stock price of $65.90. The current dividend yield is 144% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 1.60. The current ratio is 0.98 based on a stock price of $65.90, Revenue estimate for 2026 of $2,822M, and Revenue per Share of $67.21. The current ratio is 39% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably cheap. The dividend yield tests say that the stock price is relatively cheap. This is confirmed by the P/S Ratio test. All the rest of the tests say that the stock price is relatively cheap.
When I look at analysts’ recommendations, I find Strong Buy (3), Buy (1), Hold (6) and Underperform (1). The consensus would be a Buy. The 12 month stock price consensus is $75.66 with a high of 100.00 and low of $67.00. The 12 month consensus stock price of $75.66 implies a total return of 20.80% with 14.81% from capital gains and 5.99% from dividends based on a current stock price of $65.90.
There are a few entries for this stock on Stock Chase in 2025. There are a couple of buys and a Hold. The Hold analysts is worried about the debt and feels that the company has to find a way to paying it down while growing the company. Puja Tayal on Motley Fool thinks this a good buy because she believes it has a safety net of assured dividend growth for the next two years. Christopher Liew on Motley Fool says this stock is price-friendly with income generation . The company put out a Press Release about their 2025 annual results. The company put out a Press Release about their first quarter of 2026 results.
Simply Wall Street via Yahoo Finance reviews this stock. They talk about Caisse de dépôt et placement du Québec recently moved to sell a block of Cogeco Communications Inc. subordinate voting shares, representing nearly 11% of the company’s issued and outstanding subordinate shares. They said eight fair values estimates span from $35.00 to $236.00 and this shows how widely views can differ.
Simply Wall Street via Yahoo Finance reviews this stock. I do not see any real answers to why the stock went so high in 2021 and has fallen ever since. Simply Wall Street has one warning of Interest payments are not well covered by earnings.
Cogeco Communications is a telecom service provider in Canada and the US, specifically in rural and suburban geographies. It offers wireline services such as broadband internet, TV, and landline phone services. It operates in Canada and in US throughout the East Coast, Pennsylvania, and Ohio. Its web site is here Cogeco Communications Inc.
The last stock I wrote about was about was Exco Technologies Ltd (TSX-XTC, OTC-EXCOF) ... learn more. The next stock I will write about will be Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) ... learn more on Monday, February 2, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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