Hey there,
Well for starters - CCA will likely always be more volatile than the big three since it is a much smaller company. That said, the same factors that have led to weakness in the Big 3 are the same that are pressuring CCA. As a high capex company, rising rates are a headwind for the company as it becomes more expensive to borrow. It'll also make it more difficult for the company to enter the Canadian wireless market.
That said, the company also posted disappointing quarterly results in mid-January which caused the most recent downturn. RGUs (subscribers) came in below expectations and Fiscal 2023 revenue and adjusted EBITDA guidance was adjusted downwards. Whenever we see downward revision to guidance by companies, a drop in share price usually follows - especially in this very volatile environment. Not to mention, several analysts revised their target price lower as a result adding further pressure.
It seems like there is decent strength in Canadian Broadband and weakness in American Broadband and the company does remain interested in entering the wireless market but as mentioned above, rates make it is likely rates are making it difficult.
Today, the company is trading at nearly a 40% discount to historical averages. However, it is important to note that the expectation is for negative growth in Fiscal 2023 which is likely one of the main reasons why the company is trading at such a discount.
Now, I say all this with the following caveat - I think the recent downtrend is a little overdone. It also has an RSI below 30, a sign that the company is oversold and that perhaps, a short-term rebound is in the cards. All in all, valuations do look quite attractive here, but negative growth in 2023 and low-to-mid single digit growth in Fiscal 2024 (estimates) isn't too much to get excited about.
Mat