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Fundamental analysis: Cogent Communications Holdings, Inc. (CCOI)

Awarener score: 6.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Superb) and growth (Lacking), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

  • Business has been slightly shrinking. It's been similar to peer companies.
  • Cogent Communications Holdings, Inc. business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 7.8

  • CCOI profit margins -on goods and services sold- are usually excellent. They stand somewhat better than rival companies.
  • Business profit on sales tends to be excellent. It's great when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain a slight improvement compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still well ranked against similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain encouraging in relation to rivals.
  • Total net profit tends to be sufficient when confronted to sales. Company stands similar to comparable firms.

Growth score: 4.7

  • Cogent Communications Holdings, Inc. profit -on goods and services sold- has been growing at a low pace. It's been rather normal in relation to competitors.
  • In recent years, earnings -on operations- have been growing at a very low step, which has been somewhat worse than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares almost average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a slow tempo. It turns to be close to average when compared to similar stocks.
  • In past years, growth on profits -before income taxes- was almost stagnant. It was mediocre against rivals.
  • In the previous years, growth on total net profit has been average, and below average when measured against peer companies.
  • Earnings per share have grown at a normal rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 2.0

  • CCOI had to pay too much income taxes in relation to profits made in the past years. It's been worse than most peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.5

  • Cogent Communications Holdings, Inc. usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
  • Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
  • Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 5.4

  • CCOI usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands encouraging in relation to rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is weak when measured against industry peers.
  • In the past twelve months it paid excellent dividends, considering the current stock price. It came slightly better than competitors.
  • Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved in good shape compared to similar firms.
  • The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks mediocre against comparable companies.
  • The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.9

  • Cogent Communications Holdings, Inc. has not disclosed intangibles assets, so we could not reach a meaningful conclusion on this metric. It happens to be a not known variable when measured with peer companies.
  • The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be excellent in relation to similar firms.
  • Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains bottom tier against rival firms.
  • Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks more than average in relation to rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's excellent in relation to peer firms.
  • For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is better than most similar enterprises.
  • Usually, sales are on a month credit. It still ranks encouraging in relation to peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes close to one month from the purchase to charging customers. It happens to be somewhat better than peers.
  • On average pays suppliers after a month and a half from the purchase. It ranks below average when measured against industry peers.
  • The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's a slight improvement compared to similar companies.
  • Usual business earnings are mostly consumed by net interest expenses. Creditors may be earning money by assuming risks, but stockholders not so much. Profitability must increase, lest the firm risks only working for creditors' benefit. It stands mediocre against rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
  • Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
  • Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 3.9

  • Cogent Communications Holdings, Inc. profits are really small compared to market valuation, market valuation doesn't rely on current earnings. It happens to be substantially worse when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some free funds in relation to the stock price, which stands somewhat better than similar companies.
  • The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still encouraging in relation to industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks slightly better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks substantially worse when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
  • There's no accounting equity, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains bottom tier against peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be almost average when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 5.7


CCOI logos

Company at a glance: Cogent Communications Holdings, Inc. (CCOI)

Sector, industry: Communication Services, Telecom Services

Market Cap: 3.38 billions

Revenues TTM: 0.59 billions

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Asia, South America, Australia, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, Web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers. It also provides Internet access and private network services to customers that are not located in buildings directly connected to its network; and on-net services to customers located in buildings that are physically connected to its network. In addition, the company offers off-net services to corporate customers using other carriers' circuits to provide the last mile portion of the link from the customers' premises to the network. Further, it operates data centers that allow its customers to collocate their equipment and access the network. The company operates 54 data centers and provides facilities to 3,035 buildings and on-net services to 1,817 to multi-tenant office buildings. It serves primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations. Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.

Awarener score: 6.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Superb) and growth (Lacking), and the company's inclination to return cash to the stockholders (Very good).