Thank you for the interesting write up. What do you think about Cogeco? It's trading at a lower EV/EBITDA ratio as well, especially considering the holding setup $CCA.TO / $CGO.TO.
Thank you for the interesting write up. What do you think about Cogeco? It's trading at a lower EV/EBITDA ratio as well, especially considering the holding setup $CCA.TO / $CGO.TO.
I loosely follow it. It's cheap, but management isn't as committed to shareholder value, and the canadian assets deserve a lower multiple than us asses.
Thank you for the reply. You are probably right about management/owner family. Why do you think the CA assets deserve a lower multiple? EBITDA margins around 48% (higher in mature CA markets) look quite good and about half the revenue is US based. Although capex/rev at 20% could be improved.
IтАЩve been looking at Cogeco inc and comm for sometimes and especially inc has consistent and predictable fcf and rather cheap/attractive p/fcf. I would like to think the family actually cares about shareholder value as they are major shareholders, own like 60% and were approached by Rogers and Altice for their shares amd Cogeco assets. They also predicted 2-5 consistent revenue growth with costs decreasing. We can easily take a peek at their assets and a little read would show that they are prized jewels desired by big dogs and have a much higher value than the mkt cap altogether hence a rather easy choice especially when the price keeps tumbling offering better m.o.s. Lemme know how you feelтАж
Thank you for the interesting write up. What do you think about Cogeco? It's trading at a lower EV/EBITDA ratio as well, especially considering the holding setup $CCA.TO / $CGO.TO.
I loosely follow it. It's cheap, but management isn't as committed to shareholder value, and the canadian assets deserve a lower multiple than us asses.
Thank you for the reply. You are probably right about management/owner family. Why do you think the CA assets deserve a lower multiple? EBITDA margins around 48% (higher in mature CA markets) look quite good and about half the revenue is US based. Although capex/rev at 20% could be improved.
Got interested in Cogeco reading this blog post: https://www.biremecapital.com/blog/cogeco-undervalued-canadian-cable-co
IтАЩve been looking at Cogeco inc and comm for sometimes and especially inc has consistent and predictable fcf and rather cheap/attractive p/fcf. I would like to think the family actually cares about shareholder value as they are major shareholders, own like 60% and were approached by Rogers and Altice for their shares amd Cogeco assets. They also predicted 2-5 consistent revenue growth with costs decreasing. We can easily take a peek at their assets and a little read would show that they are prized jewels desired by big dogs and have a much higher value than the mkt cap altogether hence a rather easy choice especially when the price keeps tumbling offering better m.o.s. Lemme know how you feelтАж