Cogent Communications Holdings Inc (CCOI, Financial) is a prominent player in the Telecommunication Services industry. As of August 11, 2023, the company's stock price stands at $68.91, marking a 4.46% gain for the day and a 4.97% increase over the past four weeks. With a market capitalization of $3.37 billion, CCOI's GF Score is 84 out of 100, indicating good outperformance potential.
Financial Strength Analysis
The Financial Strength of a company is a crucial factor in determining its long-term performance. CCOI's Financial Strength Rank is 3/10, which is relatively low. This rank is determined by several factors, including the company's debt burden, debt to revenue ratio, and Altman Z-Score. CCOI's interest coverage is 0.56, indicating a high debt burden. Its debt to revenue ratio is 2.67, and its Altman Z score is 2.31, both of which suggest a need for improvement in financial strength.
Profitability Rank Analysis
CCOI's Profitability Rank is 8/10, indicating a high level of profitability. This rank is determined by factors such as operating margin, Piotroski F-Score, trend of operating margin, consistency of profitability, and Predictability Rank. CCOI's Operating Margin is 7.07%, and its Piotroski F-Score is 5. The company has shown consistent profitability over the past 10 years and has a Predictability Rank of 3.
Growth Rank Analysis
The Growth Rank of CCOI is 7/10, suggesting a good growth potential. This rank is based on the 5-year revenue growth rate, 3-year revenue growth rate, and 5-year EBITDA growth rate. CCOI's 5-year revenue growth rate is 3.40%, and its 3-year revenue growth rate is 2.30%. The company's 5-year EBITDA growth rate is 3.20%, indicating a steady growth in its business operations.
GF Value Rank Analysis
CCOI's GF Value Rank is 10/10, the highest possible rank. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.
Momentum Rank Analysis
The Momentum Rank of CCOI is 8/10, indicating a strong momentum. This rank is determined using the standardized momentum ratio and other momentum indicators. The high Momentum Rank suggests that CCOI's stock price has a good chance of continuing its upward trend.
Competitor Analysis
CCOI's main competitors in the Telecommunication Services industry are IHS Holding Ltd (IHS, Financial), Millicom International Cellular SA (TIGO, Financial), and InterDigital Inc (IDCC, Financial). Compared to these competitors, CCOI's GF Score of 84 is significantly higher than IHS's score of 19, and slightly higher than TIGO's score of 79 and IDCC's score of 81. This suggests that CCOI has a stronger potential for outperformance in the market. More details about the competitors can be found here.
Conclusion
In conclusion, Cogent Communications Holdings Inc (CCOI, Financial) has a GF Score of 84, indicating good outperformance potential. Despite its relatively low Financial Strength Rank, the company's high Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank suggest that it could be a good investment choice. However, potential investors should also consider the company's financial strength and compare it with its competitors before making investment decisions.
