(CCA) Cogeco Communications - Ratings and Ratios

Cogeco Communications Inc. (TO:CCA) is a leading telecommunications provider operating in Canada and the United States, serving both residential and business customers. The company is divided into two main segments: Canadian Telecommunications and American Telecommunications. It delivers a comprehensive suite of services, including high-speed Internet, video, wireless, and wireline phone solutions, leveraging its advanced broadband fiber networks. The company also offers specialized business solutions such as dedicated fiber, SIP trunking, PRI trunking, hosted PBX, and managed business Wi-Fi. These services are supported by a robust infrastructure that includes fiber-to-the-home (FTTH) networks, hybrid fiber-coaxial (HFC) systems, and point-to-point fiber connections, ensuring high-speed and reliable connectivity.

Under the Cogeco Connexion brand in Québec and Ontario, and Breezeline in the U.S., the company provides cable television, Internet, and telephony services. It also offers value-added features such as managed Wi-Fi, email solutions, and Internet security suites with automatic updates to protect customer devices. The company supports self-installation options for its services, offering rental devices to simplify the setup process for users. Cogeco Communications Inc. was founded in 1957 and is headquartered in Montreal, Canada, operating as a subsidiary of Cogeco Inc. The company rebranded from Cogeco Cable Inc. to Cogeco Communications Inc. in 2016 to reflect its expanded service offerings beyond traditional cable services.

From a financial perspective, Cogeco Communications Inc. has a market capitalization of 2,796.60M CAD, with a price-to-earnings (P/E) ratio of 8.57 and a forward P/E of 8.37, indicating a modest valuation relative to its earnings. The price-to-book (P/B) ratio of 0.87 suggests that the stock may be undervalued compared to its book value. The company also demonstrates a return on equity (RoE) of 10.31%, reflecting its ability to generate profits from shareholder equity. The price-to-sales (P/S) ratio of 0.94 further highlights its reasonable valuation relative to revenue.

Technically, the stock has shown stability, with a 20-day average volume of 73,062 shares. The last price of 65.33 is slightly above the 20-day simple moving average (SMA) of 65.25 but below the 50-day SMA of 65.51 and the 200-day SMA of 64.51. The average true range (ATR) of 1.83 indicates moderate volatility, suggesting that price movements are not excessively erratic.