Cogeco CommunicationsSTU:COG 77 Operating Margin % is 24.88% as of Feb. 2026, which is 7% below its 10-year median of 26.65. GuruFocus rates STU:COG with a GF Score™ of 77/100 and a GF Value™ of €39.17 (Fairly Valued). The stock has 6 warning signs investors should review. Among 367 Telecommunication Services companies, Cogeco Communications ranks better than 85.29% on this metric.
Cogeco Communications Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Cogeco Communications's Operating Margin % or its related term are showing as below:
STU:COG'
s Operating Margin % Range Over the Past 10 Years
Min: 22.31 Med: 26.65 Max: 27.7
Current: 25.33
STU:COG's Operating Margin % is ranked better than 85.29% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs STU:COG: 25.33
Cogeco Communications's 5-Year Average Operating Margin % Growth Rate was -1.80% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Cogeco Communications Operating Margin % Related Terms
Cogeco Communications Operating Margin % Historical Data
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The historical data trend for Cogeco Communications's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:COG vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Cogeco Communications's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cogeco Communications Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Cogeco Communications's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cogeco Communications's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Cogeco Communications's Operating Margin % for the fiscal year that ended in Aug. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cogeco Communications (STU:COG) has a Operating Margin % of 24.88% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cogeco Communications and its competitors. This is near median its historical median of 26.65. Over the past decade, Cogeco Communications' Operating Margin % has ranged from 22.31 to 27.70. According to the industry distribution chart, Cogeco Communications ranks #54 out of 367 companies in the Telecommunication Services industry, placing it in the top 14.7%.
Is Cogeco Communications' Operating Margin % too high?
Cogeco Communications' current Operating Margin % of 24.88% is near median its 10-year median of 26.65. Over the past 10 years, this metric has ranged from a low of 22.31 to a high of 27.70. The Telecommunication Services industry median Operating Margin % is 9.73. Cogeco Communications' value of 24.88% is 155.7% above this industry median. Based on the distribution chart, Cogeco Communications ranks #54 out of 367 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Cogeco Communications has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cogeco Communications' Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Cogeco Communications ranks #54 out of 367 companies for Operating Margin %. This places Cogeco Communications in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 9.73. Cogeco Communications' value of 24.88% is 155.7% above this benchmark. Historically, Cogeco Communications' own Operating Margin % has ranged from 22.31 to 27.70 over the past decade. While the company's 10-year median is 26.65 vs. the industry median of 9.73, Cogeco Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cogeco Communications's current Operating Margin % of 24.88% is 155.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Cogeco Communications and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cogeco Communications's current Operating Margin % is 24.88%, which is near median its own 10-year median of 26.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cogeco Communications stock overvalued right now?
Based on GuruFocus' analysis, Cogeco Communications (STU:COG) is currently considered Fairly Valued. The stock's GF Value™ is €39.17, compared to a current price of €39.20 — trading 0.1% above its estimated fair value. The current Operating Margin % is 24.88%, which is near median its 10-year median of 26.65 and 155.7% above the Telecommunication Services industry median of 9.73. Cogeco Communications' overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Cogeco Communications (STU:COG), the current Operating Margin % is 24.88% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cogeco Communications (STU:COG) Overvalued in 2026?
Based on GuruFocus' analysis, Cogeco Communications stock appears to be overvalued.
The current stock price of €39.20 is trading 0.1% above its estimated GF Value™ of €39.17.
GuruFocus considers Cogeco Communications to be Fairly Valued.
Key valuation signals for STU:COG:
Operating Margin %: 24.88% (near median its 10-year median of 26.65)
GF Value™: €39.17 vs. price of €39.20 (0.1% above fair value)
Industry Position: 155.7% above the Telecommunication Services median (#54 of 367)
No single metric tells the full story. See the STU:COG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cogeco Communications is a telecom service provider in Canada and the US, specifically in rural and suburban geographies. It offers wireline services such as broadband internet, TV, and landline phone services. In Canada, the firm operates under its Cogeco Connexion and Oxio brands, reaching roughly 2.1 million homes and businesses throughout Ontario and Quebec. In the US, Cogeco operates under its Breezeline brand throughout the East Coast, Pennsylvania, and Ohio, reaching 1.8 million homes and businesses. Cogeco is expanding its offerings to include consumer wireless services, operating as a mobile virtual network operator.
77GF Score
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