ROGERS COMMUNICATION - A (RCI-A.CA) Stock Fundamental Analysis
TSX:RCI-A - Toronto Stock Exchange - CA7751091017 - Common Stock - Currency: CAD
Overall RCI-A gets a fundamental rating of 4 out of 10. We evaluated RCI-A against 2 industry peers in the Wireless Telecommunication Services industry. There are concerns on the financial health of RCI-A while its profitability can be described as average. RCI-A has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RCI-A was profitable.
In the past year RCI-A had a positive cash flow from operations.
In the past 5 years RCI-A has always been profitable.
RCI-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RCI-A has a Return On Assets (2.43%) which is comparable to the rest of the industry.
RCI-A's Return On Equity of 16.67% is in line compared to the rest of the industry. RCI-A outperforms 50.00% of its industry peers.
The Return On Invested Capital of RCI-A (5.56%) is comparable to the rest of the industry.
RCI-A had an Average Return On Invested Capital over the past 3 years of 5.27%. This is in line with the industry average of 5.56%.
The last Return On Invested Capital (5.56%) for RCI-A is above the 3 year average (5.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 16.67% | ||
| ROIC | 5.56% |
ROA(3y)2.22%
ROA(5y)2.9%
ROE(3y)13.82%
ROE(5y)14.57%
ROIC(3y)5.27%
ROIC(5y)5.77%
1.3 Margins
Looking at the Profit Margin, with a value of 8.42%, RCI-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RCI-A has declined.
RCI-A has a Operating Margin (24.27%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RCI-A has remained more or less at the same level.
RCI-A has a Gross Margin (46.68%) which is in line with its industry peers.
RCI-A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.27% | ||
| PM (TTM) | 8.42% | ||
| GM | 46.68% |
OM growth 3Y2.52%
OM growth 5Y-0.35%
PM growth 3Y-7.49%
PM growth 5Y-9.09%
GM growth 3Y5.13%
GM growth 5Y2.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RCI-A is destroying value.
RCI-A has more shares outstanding than it did 1 year ago.
RCI-A has more shares outstanding than it did 5 years ago.
RCI-A has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of RCI-A is 30.40, which is on the high side as it means it would take RCI-A, 30.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RCI-A (30.40) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.17 is on the high side and indicates that RCI-A has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.17, RCI-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 30.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.95
WACC5.85%
2.3 Liquidity
A Current Ratio of 0.66 indicates that RCI-A may have some problems paying its short term obligations.
The Current ratio of RCI-A (0.66) is comparable to the rest of the industry.
RCI-A has a Quick Ratio of 0.66. This is a bad value and indicates that RCI-A is not financially healthy enough and could expect problems in meeting its short term obligations.
RCI-A has a Quick ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.07% over the past year.
RCI-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.02% yearly.
Looking at the last year, RCI-A shows a small growth in Revenue. The Revenue has grown by 6.71% in the last year.
RCI-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.45% yearly.
EPS 1Y (TTM)10.07%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%22.69%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.01%
3.2 Future
RCI-A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.09% yearly.
RCI-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.05% yearly.
EPS Next Y-0.01%
EPS Next 2Y2.92%
EPS Next 3Y5.09%
EPS Next 5YN/A
Revenue Next Year1.85%
Revenue Next 2Y2.01%
Revenue Next 3Y2.05%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.10, the valuation of RCI-A can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RCI-A is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RCI-A to the average of the S&P500 Index (29.35), we can say RCI-A is valued rather cheaply.
A Price/Forward Earnings ratio of 9.10 indicates a reasonable valuation of RCI-A.
RCI-A's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. RCI-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.1 | ||
| Fwd PE | 9.1 |
4.2 Price Multiples
RCI-A's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RCI-A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.71 | ||
| EV/EBITDA | 7.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.26
EPS Next 2Y2.92%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.93%, RCI-A is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.93, RCI-A has a dividend in line with its industry peers.
RCI-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
5.2 History
The dividend of RCI-A decreases each year by -7.00%.
RCI-A has paid a dividend for at least 10 years, which is a reliable track record.
RCI-A has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-7%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
RCI-A pays out 42.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.62%
EPS Next 2Y2.92%
EPS Next 3Y5.09%
TSX:RCI-A (3/7/2025, 7:00:00 PM)
45.75
-0.75 (-1.61%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.23%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner ChangeN/A
Market Cap24.62B
Analysts76.67
Price Target60.88 (33.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
Yearly Dividend1.39
Dividend Growth(5Y)-7%
DP42.62%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.81%
Min EPS beat(2)1.02%
Max EPS beat(2)4.6%
EPS beat(4)2
Avg EPS beat(4)0.2%
Min EPS beat(4)-3.01%
Max EPS beat(4)4.6%
EPS beat(8)5
Avg EPS beat(8)1.28%
EPS beat(12)7
Avg EPS beat(12)1.39%
EPS beat(16)8
Avg EPS beat(16)1.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.5%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.4%
Revenue beat(8)1
Avg Revenue beat(8)-3.15%
Revenue beat(12)1
Avg Revenue beat(12)-2.88%
Revenue beat(16)2
Avg Revenue beat(16)-2.53%
PT rev (1m)-7.21%
PT rev (3m)-17.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.19%
EPS NY rev (1m)-3.95%
EPS NY rev (3m)-6.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.1 | ||
| Fwd PE | 9.1 | ||
| P/S | 1.19 | ||
| P/FCF | 15.71 | ||
| P/OCF | 4.33 | ||
| P/B | 2.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.07 |
EPS(TTM)5.03
EY10.99%
EPS(NY)5.03
Fwd EY10.99%
FCF(TTM)2.91
FCFY6.37%
OCF(TTM)10.56
OCFY23.07%
SpS38.29
BVpS19.33
TBVpS-44.11
PEG (NY)N/A
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 16.67% | ||
| ROCE | 8.5% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 12.85% | ||
| OM | 24.27% | ||
| PM (TTM) | 8.42% | ||
| GM | 46.68% | ||
| FCFM | 7.61% |
ROA(3y)2.22%
ROA(5y)2.9%
ROE(3y)13.82%
ROE(5y)14.57%
ROIC(3y)5.27%
ROIC(5y)5.77%
ROICexc(3y)5.34%
ROICexc(5y)5.94%
ROICexgc(3y)10.73%
ROICexgc(5y)11.34%
ROCE(3y)8.05%
ROCE(5y)8.82%
ROICexcg growth 3Y1.64%
ROICexcg growth 5Y0.07%
ROICexc growth 3Y-4.65%
ROICexc growth 5Y-6.26%
OM growth 3Y2.52%
OM growth 5Y-0.35%
PM growth 3Y-7.49%
PM growth 5Y-9.09%
GM growth 3Y5.13%
GM growth 5Y2.52%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 30.4 | ||
| Debt/EBITDA | 4.48 | ||
| Cap/Depr | 87.9% | ||
| Cap/Sales | 19.96% | ||
| Interest Coverage | 2.4 | ||
| Cash Conversion | 58.68% | ||
| Profit Quality | 90.37% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | N/A |
F-Score7
WACC5.85%
ROIC/WACC0.95
Cap/Depr(3y)100.64%
Cap/Depr(5y)99.39%
Cap/Sales(3y)20.33%
Cap/Sales(5y)19.48%
Profit Quality(3y)104.95%
Profit Quality(5y)104.43%
High Growth Momentum
Growth
EPS 1Y (TTM)10.07%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%22.69%
EPS Next Y-0.01%
EPS Next 2Y2.92%
EPS Next 3Y5.09%
EPS Next 5YN/A
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.01%
Revenue Next Year1.85%
Revenue Next 2Y2.01%
Revenue Next 3Y2.05%
Revenue Next 5YN/A
EBIT growth 1Y12.13%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year96.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.18%
FCF growth 3Y5.91%
FCF growth 5Y-1.13%
OCF growth 1Y8.79%
OCF growth 3Y10.93%
OCF growth 5Y4.65%