Cogent Communications Holdings Inc (CCOI, Financial) is a renowned player in the telecommunication services industry. As of August 11, 2023, the company's stock price stands at $69.12, with a market capitalization of $3.38 billion. The stock has seen a gain of 4.77% today and a 4.86% increase over the past four weeks. According to the GF Score, Cogent Communications has a score of 84 out of 100, indicating good outperformance potential.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. These aspects include Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. Each of these components is ranked, and the ranks also have a positive correlation with the long-term performances of stocks. The GF Score ranges from 0 to 100, with 100 as the highest rank. Stocks with a higher GF Score generally generate higher returns than those with lower GF Scores.
Financial Strength of Cogent Communications
As of June 30, 2023, Cogent Communications has a Financial Strength rank of 3 out of 10. This rank measures how strong a company's financial situation is. It is based on factors such as interest coverage (0.56), debt to revenue ratio (2.67), and Altman Z score (2.31). Despite the low rank, the company's financial strength is still within a manageable range.
Profitability Rank Analysis
Cogent Communications has a Profitability Rank of 8 out of 10. This rank measures how profitable a company is and how likely the company's business will stay that way. It is based on factors such as Operating Margin (7.07%), Piotroski F-Score (5), and a consistent profitability of 10 years. This high rank indicates that the company has a strong profitability potential.
Growth Rank of Cogent Communications
The company's Growth Rank stands at 7 out of 10. This rank measures the growth of a company in terms of its revenue and profitability. The rank is calculated using criteria such as 5-year revenue growth rate (3.40%), 3-year revenue growth rate (2.30%), and 5-year EBITDA growth rate (3.20%). This suggests that Cogent Communications has a good growth potential.
GF Value Rank and Momentum Rank
Cogent Communications has a GF Value Rank of 10 out of 10 and a Momentum Rank of 8 out of 10. The high GF Value Rank indicates that the stock is undervalued, while the high Momentum Rank suggests that the stock has a strong momentum.
Comparison with Competitors
When compared to its competitors in the same industry, Cogent Communications stands out with its high GF Score. IHS Holding Ltd (IHS, Financial) has a GF Score of 19, Millicom International Cellular SA (TIGO, Financial) has a GF Score of 79, and InterDigital Inc (IDCC, Financial) has a GF Score of 81. This comparison further highlights the good outperformance potential of Cogent Communications. For more details, please visit the competitors page.
In conclusion, Cogent Communications Holdings Inc presents a promising investment opportunity with its high GF Score, strong profitability, good growth potential, and undervalued status. However, investors should also consider the company's financial strength and the performance of its competitors before making investment decisions.
