ROGERS COMMUNICATION - A (RCI-A.CA) Stock Fundamental Analysis
TSX:RCI-A - Toronto Stock Exchange - CA7751091017 - Common Stock - Currency: CAD
Taking everything into account, RCI-A scores 4 out of 10 in our fundamental rating. RCI-A was compared to 2 industry peers in the Wireless Telecommunication Services industry. RCI-A has a medium profitability rating, but doesn't score so well on its financial health evaluation. RCI-A has a decent growth rate and is not valued too expensively. Finally RCI-A also has an excellent dividend rating.
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.
RCI-A had positive earnings in each of the past 5 years.
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 (2.40%) which is comparable to the rest of the industry.
RCI-A has a Return On Equity (16.54%) which is in line with its industry peers.
RCI-A has a Return On Invested Capital (5.29%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RCI-A is in line with the industry average of 5.29%.
The 3 year average ROIC (5.27%) for RCI-A is below the current ROIC(5.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 16.54% | ||
| ROIC | 5.29% |
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
RCI-A's Profit Margin of 8.50% is in line compared to the rest of the industry. RCI-A outperforms 50.00% of its industry peers.
RCI-A's Profit Margin has declined in the last couple of years.
The Operating Margin of RCI-A (24.30%) is comparable to the rest of the industry.
RCI-A's Operating Margin has been stable in the last couple of years.
RCI-A has a Gross Margin (46.70%) which is in line with its industry peers.
In the last couple of years the Gross Margin of RCI-A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.3% | ||
| PM (TTM) | 8.5% | ||
| GM | 46.7% |
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
Compared to 5 years ago, RCI-A has more shares outstanding
RCI-A has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that RCI-A is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RCI-A (0.95) is better than 100.00% of its industry peers.
The Debt to FCF ratio of RCI-A is 28.17, which is on the high side as it means it would take RCI-A, 28.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RCI-A (28.17) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.37 is on the high side and indicates that RCI-A has dependencies on debt financing.
The Debt to Equity ratio of RCI-A (4.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | 28.17 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.89
WACC5.91%
2.3 Liquidity
RCI-A has a Current Ratio of 1.00. 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.
Looking at the Current ratio, with a value of 1.00, RCI-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
RCI-A has a Quick Ratio of 1.00. 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.
Looking at the Quick ratio, with a value of 0.94, RCI-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
RCI-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.53%, which is quite good.
The Earnings Per Share has been growing slightly by 4.02% on average over the past years.
The Revenue has been growing slightly by 1.50% in the past 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)12.53%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%0%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%1.53%
3.2 Future
Based on estimates for the next years, RCI-A will show a small growth in Earnings Per Share. The EPS will grow by 4.00% on average per year.
The Revenue is expected to grow by 1.76% on average over the next years.
EPS Next Y-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue Next Year1.34%
Revenue Next 2Y1.8%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 9.28, the valuation of RCI-A can be described as very reasonable.
RCI-A's Price/Earnings ratio is in line with the industry average.
RCI-A is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.01, the valuation of RCI-A can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCI-A is on the same level as its industry peers.
RCI-A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
RCI-A's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCI-A is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.34 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.31
EPS Next 2Y1.52%
EPS Next 3Y4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.56%, RCI-A is a good candidate for dividend investing.
RCI-A's Dividend Yield is rather good when compared to the industry average which is at 4.78. RCI-A pays more dividend than 100.00% of the companies in the same industry.
RCI-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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 41.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.75%
EPS Next 2Y1.52%
EPS Next 3Y4%
TSX:RCI-A (7/4/2025, 7:00:00 PM)
46.7
+0.34 (+0.73%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.32%
Inst Owner ChangeN/A
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap25.13B
Analysts76.67
Price Target57.46 (23.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend1.39
Dividend Growth(5Y)-7%
DP41.75%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.19%
Min EPS beat(2)-4.97%
Max EPS beat(2)4.6%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-4.97%
Max EPS beat(4)4.6%
EPS beat(8)4
Avg EPS beat(8)0.05%
EPS beat(12)6
Avg EPS beat(12)0.53%
EPS beat(16)7
Avg EPS beat(16)0.27%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-3%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.84%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.4%
Revenue beat(8)1
Avg Revenue beat(8)-2.86%
Revenue beat(12)1
Avg Revenue beat(12)-2.86%
Revenue beat(16)1
Avg Revenue beat(16)-2.79%
PT rev (1m)-3.16%
PT rev (3m)-5.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 9.01 | ||
| P/S | 1.22 | ||
| P/FCF | 14.34 | ||
| P/OCF | 4.34 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.15 |
EPS(TTM)5.03
EY10.77%
EPS(NY)5.18
Fwd EY11.1%
FCF(TTM)3.26
FCFY6.97%
OCF(TTM)10.77
OCFY23.07%
SpS38.43
BVpS19.75
TBVpS-43.45
PEG (NY)N/A
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 16.54% | ||
| ROCE | 7.95% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.51% | ||
| ROICexgc | 12.07% | ||
| OM | 24.3% | ||
| PM (TTM) | 8.5% | ||
| GM | 46.7% | ||
| FCFM | 8.47% |
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-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | 28.17 | ||
| Debt/EBITDA | 4.78 | ||
| Cap/Depr | 86.06% | ||
| Cap/Sales | 19.56% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 59.61% | ||
| Profit Quality | 99.66% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 0.95 |
F-Score6
WACC5.91%
ROIC/WACC0.89
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)12.53%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%0%
EPS Next Y-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue 1Y (TTM)1.5%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%1.53%
Revenue Next Year1.34%
Revenue Next 2Y1.8%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
EBIT growth 1Y11.52%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year90.66%
EBIT Next 3Y25.43%
EBIT Next 5YN/A
FCF growth 1Y132.05%
FCF growth 3Y5.91%
FCF growth 5Y-1.13%
OCF growth 1Y40.24%
OCF growth 3Y10.93%
OCF growth 5Y4.65%