(CCOI) Cogent Communications - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NASDAQ (USA) | Market Cap: 909m USD | Total Return: -58.2% in 12m
Avg Turnover: 17.9M
Qual. Beats: 0
Rev. Trend: 48.8%
Qual. Beats: 0
Warnings
Negative Equity with losses - insolvent profile
High Debt/EBITDA (18.5) with thin interest coverage (-0.4)
High Debt while negative Cash Flow
Interest Coverage Ratio -0.4 is critical
Altman Z'' -0.74 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Cogent Communications Holdings, Inc. is a multinational internet service provider specializing in high-speed connectivity and data center colocation. The company operates an extensive fiber-optic network across five continents, delivering on-net and off-net private network services to professional firms, service providers, and bandwidth-intensive organizations. Its infrastructure supports both direct building connections and last mile links through third-party carrier circuits.
As an alternative carrier, Cogent focuses on a low-cost, high-volume business model by targeting multi-tenant office buildings and carrier-neutral data centers. The sector is characterized by high fixed costs and significant barriers to entry due to the capital required for physical fiber deployment. Investors looking for deeper fundamental analysis should review the latest performance metrics on ValueRay.
Founded in 1999 and headquartered in Washington, D.C., the company serves a diverse client base ranging from small businesses to global content delivery networks. By operating its own IP backbone, Cogent maintains control over data routing efficiency, a critical factor for its media and telecommunications customers.
- Sprint Global IP network acquisition integration scales wavelength revenue
- Corporate segment demand recovers as office occupancy stabilizes
- NetCentric pricing pressure offsets volume growth in wholesale transit
- Dividend sustainability depends on free cash flow from T-Mobile agreement
| Net Income: -169.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.07 > 0.02 and ΔFCF/TA -0.27 > 1.0 |
| NWC/Revenue: 21.52% < 20% (prev 13.69%; Δ 7.83% < -1%) |
| CFO/TA -0.01 > 3% & CFO -32.1m > Net Income -169.7m |
| Net Debt (3.47b) to EBITDA (187.5m): 18.49 < 3 |
| Current Ratio: 1.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (47.8m) vs 12m ago 0.20% < -2% |
| Gross Margin: 32.41% > 18% (prev 0.40%; Δ 3.20k% > 0.5%) |
| Asset Turnover: 30.72% > 50% (prev 32.59%; Δ -1.87% > 0%) |
| Interest Coverage Ratio: -0.35 > 6 (EBITDA TTM 187.5m / Interest Expense TTM 171.4m) |
| A: 0.07 (Total Current Assets 430.3m - Total Current Liabilities 226.1m) / Total Assets 3.06b |
| B: -0.25 (Retained Earnings -749.4m / Total Assets 3.06b) |
| C: -0.02 (EBIT TTM -60.7m / Avg Total Assets 3.09b) |
| D: -0.24 (Book Value of Equity -755.7m / Total Liabilities 3.16b) |
| Altman-Z'' = -0.74 = B |
| DSRI: 1.13 (Receivables 182.4m/172.6m, Revenue 948.7m/1.02b) |
| GMI: 1.23 (GM 32.41% / 39.99%) |
| AQI: -2.06 (AQ_t -0.45 / AQ_t-1 0.22) |
| SGI: 0.93 (Revenue 948.7m / 1.02b) |
| TATA: -0.05 (NI -169.7m - CFO -32.1m) / TA 3.06b) |
| Beneish M = -4.61 (Cap -4..+1) = AAA |
As of May 27, 2026, the stock is trading at USD 19.96 with a total of 2,019,203 shares traded.
Over the past week, the price has changed by +15.91%,
over one month by -19.03%,
over three months by +7.83% and
over the past year by -58.16%.
Cogent Communications has received a consensus analysts rating of 3.75. Therefore, it is recommended to hold CCOI.
- StrongBuy: 5
- Buy: 2
- Hold: 3
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 21.3 | 6.6% |
P/E Forward = 5000.0
P/S = 1.0225
P/B = 42.5664
P/EG = 85.8913
Revenue TTM = 948.7m USD
EBIT TTM = -60.7m USD
EBITDA TTM = 187.5m USD
Long Term Debt = 1.72b USD (from longTermDebt, last quarter)
Short Term Debt = 77.6m USD (from shortTermDebt, last quarter)
Debt = 3.61b USD (from shortLongTermDebtTotal, last quarter) + Leases 946.3m
Net Debt = 3.47b USD (calculated: Debt 3.61b - CCE 140.3m)
Enterprise Value = 4.38b USD (909.4m + Debt 3.61b - CCE 140.3m)
Interest Coverage Ratio = -0.35 (Ebit TTM -60.7m / Interest Expense TTM 171.4m)
EV/FCF = -21.06x (Enterprise Value 4.38b / FCF TTM -207.8m)
FCF Yield = -4.75% (FCF TTM -207.8m / Enterprise Value 4.38b)
FCF Margin = -21.91% (FCF TTM -207.8m / Revenue TTM 948.7m)
Net Margin = -17.88% (Net Income TTM -169.7m / Revenue TTM 948.7m)
Gross Margin = 32.41% ((Revenue TTM 948.7m - Cost of Revenue TTM 641.3m) / Revenue TTM)
Gross Margin QoQ = 45.97% (prev 22.34%)
Tobins Q-Ratio = 1.43 (Enterprise Value 4.38b / Total Assets 3.06b)
Interest Expense / Debt = 4.75% (Interest Expense 171.4m / Debt 3.61b)
Taxrate = 21.0% (US default 21%)
NOPAT = -47.9m (EBIT -60.7m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.90 (Total Current Assets 430.3m / Total Current Liabilities 226.1m)
Debt / Equity = -34.64 (negative equity) (Debt 3.61b / totalStockholderEquity, last quarter -104.2m)
Debt / EBITDA = 18.49 (Net Debt 3.47b / EBITDA 187.5m)
Debt / FCF = -16.69 (negative FCF - burning cash) (Net Debt 3.47b / FCF TTM -207.8m)
Total Stockholder Equity = -40.1m (last 4 quarters mean from totalStockholderEquity)
RoA = -5.49% (Net Income -169.7m / Total Assets 3.06b)
RoE = -23.92% (Net Income TTM -169.7m / Total Stockholder Equity 709.3m)
RoCE = -2.50% (EBIT -60.7m / Capital Employed (Equity 709.3m + L.T.Debt 1.72b))
RoIC = -1.70% (negative operating profit) (NOPAT -47.9m / Invested Capital 2.83b)
WACC = 4.66% (E(909.4m)/V(4.52b) * Re(8.26%) + D(3.61b)/V(4.52b) * Rd(4.75%) * (1-Tc(0.21)))
Discount Rate = 8.26% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 46.67 | Cagr: -0.24%
[DCF] Fair Price = unknown (Cash Flow -207.8m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.76 | # QB: 0
Revenue Correlation: 48.75 | Revenue CAGR: 7.24% | SUE: -0.32 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.89 | Chg30d=-2.89% | Revisions=-20% | Analysts=3
EPS next Quarter (2026-09-30): EPS=-0.91 | Chg30d=-17.75% | Revisions=-20% | Analysts=3
EPS current Year (2026-12-31): EPS=-3.89 | Chg30d=-18.96% | Revisions=-20% | GrowthEPS=-72.9% | GrowthRev=-1.2%
EPS next Year (2027-12-31): EPS=-2.95 | Chg30d=-24.47% | Revisions=N/A | GrowthEPS=+24.2% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: -20%