Cogent Communications Holdings, Inc. Fundamental Analysis (NASDAQ: CCOI)
Cogent Communications Holdings, Inc. Fundamental Analysis (NASDAQ: CCOI)
Cogent Communications Holdings, Inc. (NASDAQ: CCOI) shows weak financial fundamentals with a PE ratio of -5.68, profit margin of -7.20%, and ROE of 1.41%. The company generates $1.2B in annual revenue with weak year-over-year growth of -5.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 799.8/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze CCOI's fundamental strength across five key dimensions:
Efficiency Score
WeakCCOI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCCOI trades at attractive valuation levels.
Growth Score
ModerateCCOI shows steady but slowing expansion.
Financial Health Score
ModerateCCOI shows balanced financial health with some risks.
Profitability Score
WeakCCOI struggles to sustain strong margins.
Key Financial Metrics
Is CCOI Expensive or Cheap?
P/E Ratio
CCOI trades at -5.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CCOI's PEG of -0.06 indicates potential undervaluation.
Price to Book
The market values Cogent Communications Holdings, Inc. at -14.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.12 times EBITDA. This is generally considered low.
How Well Does CCOI Make Money?
Net Profit Margin
For every $100 in sales, Cogent Communications Holdings, Inc. keeps $-7.20 as profit after all expenses.
Operating Margin
Core operations generate 5.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.41 in profit for every $100 of shareholder equity.
ROA
Cogent Communications Holdings, Inc. generates $-2.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cogent Communications Holdings, Inc. generates limited operating cash flow of $15.80M, signaling weaker underlying cash strength.
Free Cash Flow
Cogent Communications Holdings, Inc. generates weak or negative free cash flow of $-149.19M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.98 in free cash annually.
FCF Yield
CCOI converts -28.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-5.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
-14.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-77.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.41
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How CCOI Stacks Against Its Sector Peers
| Metric | CCOI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -5.68 | 19.12 | Better (Cheaper) |
| ROE | 140.52% | 559.00% | Weak |
| Net Margin | -7.20% | 490.00% | Weak |
| Debt/Equity | -77.23 | -0.44 (disorted) | Distorted |
| Current Ratio | 0.63 | 1.89 | Weak Liquidity |
| ROA | -2.73% | 242.00% | Weak |
CCOI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cogent Communications Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.66%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-2909.59%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-107.23%
Industry Style: Growth, Technology, Streaming
Declining