Cogeco is a Canadian cable company providing cable TV, internet and voice over IP (VOIP) services to domestic and small business customers in Ontario and Quebec. They also provide enterprise services – data centre, managed information technology (IT) and connectivity services – for medium and large enterprises and public sector customers.
Cogeco acquired Atlantic Broadband in 2012 and Peer 1 Network Enterprises in 2013.
- The P/E Ratio is 11.83, which is a little lower than the average historical P/E of 12.38, and the Graham Number is $49.93
- The Dividend Yield is only 2.52%, which is low, but the coverage is 335% which supports a future dividend raise
- Forecast Growth Rate is good at 11.60%, compared with 14.45% historically
- The Gordon Return (Dividend + Growth) is 14.12%, which is high
- The Margin of Safety at current prices is -8%. This is low but I think the price is fair given the growth prospects.
I believe that the stock is fairly priced here.
- Buy LB.TO @ $48.25