Cogent Communications Holdings, Inc.

Consumer Discretionary
Telecommunications Equipment
www.cogentco.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.61B
PE -13
Debt $1.46B
Cash $227.92M
EV $3.84B
FCF -$203.64M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	-$204.07M
EBIT	-$197.61M
ROE	-92%
ROA	-6%
FCF	-$203.64M
Equity	$222.85M
Growth Stability	-16%
PE	-12.81
PEG	-0.54
PB	11.73
P/FCF	-12.84
P/S	2.52
Price/Cash	0.09
Debt/Equity	6.53
Debt/FCF	-7.15
Net Margins	-20%
Gross Margins	38%
Op. Margins	-19%
Earnings CAGR	7%
Sales Growth YoY	-7%
Sales Growth QoQ	-2%
Sales CAGR	4%
FCF CAGR	1%
Equity CAGR	7%
Earnings Stability	-0.28
Earnings Growth YoY	-122%
Earnings Growth QoQ	-31%

Earnings CAGR 5Y	24%
Sales CAGR 5Y	19%
FCF CAGR 5Y	0%
Equity CAGR 5Y	-3%
Earnings CAGR 3Y	23%
Sales CAGR 3Y	23%
Equity CAGR 3Y	-29%
Market Cap	$2.61B
Revenue	$1.04B
Dividend Yield	7%
Payout Ratio	-93%
Assets	$3.17B
Total Debt	$1.46B
Cash	$227.92M
Shares Outstanding	47.63M
EV	3.84B
Earnings Score	6%
Moat Score	3%
Safety Score	22%
Final Score	10%
Working Capital	228.77M
Current Ratio	1.9
Gross Profit	$394.27M
Shares Growth 3y	1%
Equity Growth QoQ	-31%
Equity Growth YoY	-63%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

Cogent carries over one fifth of the world's Internet traffic over its network and is an Internet service provider for businesses. Cogent's corporate customers are in high-rise office buildings, and the firm provides them with two types of connections: dedicated Internet access, which connects them to the Internet, and virtual private networking, which offers an internal network for employees in different locations. Cogent's corporate customers are exclusively in North America and account for over half of the firm's revenue. Cogent's netcentric customers include Internet service providers and content providers, to which Cogent provides Internet transit. They hand traffic to Cogent in data centers and rely on Cogent to deliver it.

SEC Filings

Direct access to Cogent Communications Holdings, Inc. (CCOI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Cogent Communications Holdings, Inc. compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Cogent Communications Holdings, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 7%

Stability -28%

loading chart...

Cogent Communications Holdings, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Cogent Communications Holdings, Inc..

Years

Calculation mode

= -$2.2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$204M	-$206M	-$209M	-$212M	-$215M	-$218M	-$221M	-$224M	-$227M	-$230M	-$233M	-$2.3B
DCF		-$188M	-$173M	-$159M	-$147M	-$135M	-$125M	-$115M	-$106M	-$98M	-$90M	-$899M
Value	-$2.2B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	09/2015	12/2016	12/2017	05/2018	12/2018	12/2019	05/2020	12/2020	12/2021	12/2022	06/2023	12/2023	12/2024	TTM
Net Margins	-	3%	1%	-	6%	-	-	1%	8%	-	-	135%	-20%	-20%
ROA	-	9%	11%	-	12%	-	-	11%	12%	-	-	38%	-6%	-6%
ROE	-	-28%	-6%	-	-19%	-	-	-2%	-13%	-	-	209%	-92%	-92%

Bad Net Margins (-19.7%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	09/2015	12/2016	12/2017	05/2018	12/2018	12/2019	05/2020	12/2020	12/2021	12/2022	06/2023	12/2023	12/2024	TTM
Debt over FCF	-	9.08	8.72	-	7.69	-	-	10.45	8.95	-	-	-8.46	-7.15	-7.15
Debt over Equity	-	-10.7	-5.61	-	-4.33	-	-	-3.01	-2.41	-	-	1.56	6.53	6.53
Growth Stability	-	-	-	-	100%	-	-	22%	100%	-	-	100%	-16%	-16%

Good Debt/FCF ratio (-7.15)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Bad Debt/Equity ratio (6.53)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (-16%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	09/2015	12/2016	12/2017	05/2018	12/2018	12/2019	05/2020	12/2020	12/2021	12/2022	06/2023	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-	9%	-	-	-	-	-	4%	-	-	-	10%	19%
Earnings YoY growth	-	-	-61%	-	-	-	-	-	675%	-	-	-	-116%	24%
Equity YoY growth	-	-	93%	-	-	-	-	-	27%	-	-	-	-63%	-3%
FCF YoY growth	-	-	5%	-	-	-	-	-	19%	-	-	-	81%	0%