ROGERS COMMUNICATION - A (RCI-A.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:RCI-A • CA7751091017
52.5 CAD
+1.61 (+3.16%)
Last: Jan 29, 2026, 07:00 PM
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 is valued correctly, but it does not seem to be growing. Finally RCI-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year RCI-A was profitable.
- RCI-A had a positive operating cash flow in the past year.
- RCI-A had positive earnings in each of the past 5 years.
- In the past 5 years RCI-A always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 7.53%, RCI-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- RCI-A has a Return On Equity (39.83%) which is in line with its industry peers.
- RCI-A has a Return On Invested Capital (4.32%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for RCI-A is in line with the industry average of 4.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 39.83% | ||
| ROIC | 4.32% |
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
- With a Profit Margin value of 32.11%, RCI-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of RCI-A has declined.
- The Operating Margin of RCI-A (23.36%) 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.
- With a Gross Margin value of 45.97%, RCI-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- RCI-A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.36% | ||
| PM (TTM) | 32.11% | ||
| GM | 45.97% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RCI-A is destroying value.
- Compared to 1 year ago, RCI-A has more shares outstanding
- RCI-A has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, RCI-A has a worse debt to assets ratio.
2.2 Solvency
- RCI-A has an Altman-Z score of 0.82. This is a bad value and indicates that RCI-A is not financially healthy and even has some risk of bankruptcy.
- RCI-A's Altman-Z score of 0.82 is amongst the best of the industry. RCI-A outperforms 100.00% of its industry peers.
- The Debt to FCF ratio of RCI-A is 26.81, which is on the high side as it means it would take RCI-A, 26.81 years of fcf income to pay off all of its debts.
- RCI-A has a Debt to FCF ratio (26.81) which is comparable to the rest of the industry.
- RCI-A has a Debt/Equity ratio of 2.52. This is a high value indicating a heavy dependency on external financing.
- RCI-A has a Debt to Equity ratio of 2.52. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 26.81 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.7
WACC6.16%
2.3 Liquidity
- A Current Ratio of 0.62 indicates that RCI-A may have some problems paying its short term obligations.
- RCI-A has a Current ratio of 0.62. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
- A Quick Ratio of 0.59 indicates that RCI-A may have some problems paying its short term obligations.
- The Quick ratio of RCI-A (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- RCI-A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.20%.
- Measured over the past 5 years, RCI-A shows a small growth in Earnings Per Share. The EPS has been growing by 4.02% on average per year.
- RCI-A shows a small growth in Revenue. In the last year, the Revenue has grown by 2.75%.
- 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)4.2%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-3.52%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.27%
3.2 Future
- The Earnings Per Share is expected to grow by 1.45% on average over the next years.
- RCI-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.61% yearly.
EPS Next Y-1.55%
EPS Next 2Y0%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue Next Year4.7%
Revenue Next 2Y5.14%
Revenue Next 3Y3.61%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- RCI-A is valuated reasonably with a Price/Earnings ratio of 10.58.
- The rest of the industry has a similar Price/Earnings ratio as RCI-A.
- The average S&P500 Price/Earnings ratio is at 28.39. RCI-A is valued rather cheaply when compared to this.
- RCI-A is valuated reasonably with a Price/Forward Earnings ratio of 10.44.
- 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 25.72. RCI-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCI-A is on the same level as its industry peers.
- RCI-A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.91 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.63
EPS Next 2Y0%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.91%, RCI-A has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.91, RCI-A pays a better dividend. On top of this RCI-A pays more dividend than 100.00% of the companies listed in the same industry.
- RCI-A's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
- RCI-A pays out 12.21% of its income as dividend. This is a sustainable payout ratio.
DP12.21%
EPS Next 2Y0%
EPS Next 3Y1.45%
ROGERS COMMUNICATION - A / RCI-A.CA FAQ
What is the ChartMill fundamental rating of ROGERS COMMUNICATION - A (RCI-A.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to RCI-A.CA.
Can you provide the valuation status for ROGERS COMMUNICATION - A?
ChartMill assigns a valuation rating of 4 / 10 to ROGERS COMMUNICATION - A (RCI-A.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for ROGERS COMMUNICATION - A?
ROGERS COMMUNICATION - A (RCI-A.CA) has a profitability rating of 5 / 10.
Can you provide the financial health for RCI-A stock?
The financial health rating of ROGERS COMMUNICATION - A (RCI-A.CA) is 2 / 10.
Can you provide the dividend sustainability for RCI-A stock?
The dividend rating of ROGERS COMMUNICATION - A (RCI-A.CA) is 7 / 10 and the dividend payout ratio is 12.21%.