CGEAF (Cogeco Communications) Financial Strength: 3 (As of May. 2026) — 25% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

CGEAF Cogeco Communications Inc CGEAF
68 GF Score
Price $42.31
GF Value $44.04
Valuation Fairly Valued
! 8 Warning Signs
View Full Analysis

What is Cogeco Communications Financial Strength?

Cogeco Communications CGEAF 68 Financial Strength is 3 as of May. 2026, which is 25% below its 10-year median of 4.00. GuruFocus rates CGEAF with a GF Score™ of 68/100 and a GF Value™ of $44.04 (Fairly Valued). The stock has 8 warning signs investors should review.

Cogeco Communications has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Cogeco Communications Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Cogeco Communications's Interest Coverage for the quarter that ended in May. 2026 was 3.06. Cogeco Communications's debt to revenue ratio for the quarter that ended in May. 2026 was 1.61. As of today, Cogeco Communications's Altman Z-Score is 0.09.


Cogeco Communications  (OTCPK:CGEAF) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Cogeco Communications has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Cogeco Communications Financial Strength Related Terms


CGEAF vs VZ, TMUS, T: Financial Strength Comparison

For the Telecom Services subindustry, Cogeco Communications's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Cogeco Communications's Financial Strength distribution charts can be found below:

* The bar in red indicates where Cogeco Communications's Financial Strength falls into.


CGEAF
68GF Score
Cogeco Communications Inc CGEAF
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cogeco Communications Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Cogeco Communications's Interest Expense for the months ended in May. 2026 was $-46 Mil. Its Operating Income for the months ended in May. 2026 was $140 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2026 was $3,061 Mil.

Cogeco Communications's Interest Coverage for the quarter that ended in May. 2026 is

Interest Coverage=-1*Operating Income (Q: May. 2026 )/Interest Expense (Q: May. 2026 )
=-1*139.791/-45.611
=3.06

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Cogeco Communications Inc interest coverage is 2.85, which is low.

2. Debt to revenue ratio. The lower, the better.

Cogeco Communications's Debt to Revenue Ratio for the quarter that ended in May. 2026 is

Debt to Revenue Ratio=Total Debt (Q: May. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(199.56 + 3061.16) / 2031.584
=1.61

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Cogeco Communications has a Z-score of 0.09, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.09 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 3 mean?
Cogeco Communications (CGEAF) has a Financial Strength of 3 as of May. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Cogeco Communications and its competitors. This is 25% below median its historical median of 4.00. Over the past decade, Cogeco Communications' Financial Strength has ranged from 3.00 to 6.00.
Is Cogeco Communications' Financial Strength too high?
Cogeco Communications' current Financial Strength of 3 is 25% below median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 6.00. Overall, Cogeco Communications has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cogeco Communications' Financial Strength compare to VZ and TMUS?
Cogeco Communications' Financial Strength of 3 can be compared against companies in the Telecommunication Services industry. Historically, Cogeco Communications' own Financial Strength has ranged from 3.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Telecommunication Services company?
A good Financial Strength depends on the Telecommunication Services industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Cogeco Communications and its competitors. Cogeco Communications's current Financial Strength is 3, which is 25% below median its own 10-year median of 4.00. 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 (CGEAF) is currently considered Fairly Valued. The stock's GF Value™ is $44.04, compared to a current price of $42.31 — trading 3.9% below its estimated fair value. The current Financial Strength is 3, which is 25% below median its 10-year median of 4.00. Cogeco Communications' overall GF Score™ is 68/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Cogeco Communications (CGEAF), the current Financial Strength is 3 as of May. 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 (CGEAF) Overvalued in 2026?

Based on GuruFocus' analysis, Cogeco Communications stock appears to be undervalued. The current stock price of $42.31 is trading 3.9% below its estimated GF Value™ of $44.04. GuruFocus considers Cogeco Communications to be Fairly Valued.

Key valuation signals for CGEAF:

  • Financial Strength: 3 (25% below median its 10-year median of 4.00)
  • GF Value™: $44.04 vs. price of $42.31 (3.9% below fair value)
  • GF Score™: 68/100 with 8 warning signs

No single metric tells the full story. See the CGEAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Cogeco Communications Business Description

Other Exchanges COG:GermanyCCA:Canada
Address 1 Place Ville Marie, Suite 3301, Montreal, QC, CAN, H3B 0B3
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.
68GF Score

Get the complete analysis for CGEAF

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$42.31
Price
$44.04
GF Value