ROGERS COMMUNICATION - A (RCI-A.CA) Stock Fundamental Analysis
Canada - TSX:RCI-A - CA7751091017 - Common Stock
50.53 CAD
-0.27 (-0.53%)
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
RCI-A had positive earnings in the past year.
In the past year RCI-A had a positive cash flow from operations.
Each year in the past 5 years RCI-A has been profitable.
In the past 5 years RCI-A always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.97%, RCI-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
RCI-A's Return On Equity of 13.56% is in line compared to the rest of the industry. RCI-A outperforms 50.00% of its industry peers.
RCI-A has a Return On Invested Capital (4.88%) which is in line with its industry peers.
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 4.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 13.56% | ||
| ROIC | 4.88% |
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 7.31%, 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.
Looking at the Operating Margin, with a value of 24.10%, RCI-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
RCI-A's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 46.60%, RCI-A is in line with its industry, 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 | 24.1% | ||
| PM (TTM) | 7.31% | ||
| GM | 46.6% |
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
RCI-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RCI-A has been increased compared to 1 year ago.
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 1.02. This is a bad value and indicates that RCI-A is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, RCI-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of RCI-A is 22.37, which is on the high side as it means it would take RCI-A, 22.37 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 22.37, RCI-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 3.91 is on the high side and indicates that RCI-A has dependencies on debt financing.
The Debt to Equity ratio of RCI-A (3.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.91 | ||
| Debt/FCF | 22.37 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.84
WACC5.82%
2.3 Liquidity
A Current Ratio of 1.70 indicates that RCI-A should not have too much problems paying its short term obligations.
RCI-A has a Current ratio (1.70) which is comparable to the rest of the industry.
A Quick Ratio of 1.64 indicates that RCI-A should not have too much problems paying its short term obligations.
RCI-A has a Quick ratio (1.64) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.64 |
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 8.68%, which is quite good.
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 1.87%.
The Revenue has been growing slightly by 6.45% on average over the past years.
EPS 1Y (TTM)8.68%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-1.72%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%2.42%
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 1.05% on average per year.
Based on estimates for the next years, RCI-A will show a small growth in Revenue. The Revenue will grow by 3.40% on average per year.
EPS Next Y-3.56%
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
EPS Next 5YN/A
Revenue Next Year4.29%
Revenue Next 2Y4.95%
Revenue Next 3Y3.4%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 10.09, 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 (27.27), we can say RCI-A is valued rather cheaply.
RCI-A is valuated reasonably with a Price/Forward Earnings ratio of 10.08.
The rest of the industry has a similar Price/Forward Earnings ratio as RCI-A.
RCI-A's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
RCI-A's Enterprise Value to EBITDA is on the same level as 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 | 13.45 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.51
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
5. Dividend
5.1 Amount
RCI-A has a Yearly Dividend Yield of 4.02%, which is a nice return.
RCI-A's Dividend Yield is rather good when compared to the industry average which is at 4.02. 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 | 4.02% |
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 48.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP48.65%
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
TSX:RCI-A (9/15/2025, 7:00:00 PM)
50.53
-0.27 (-0.53%)
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 Cap27.30B
Analysts76.8
Price Target58.02 (14.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend1.39
Dividend Growth(5Y)-7%
DP48.65%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.16%
Min EPS beat(2)-4.97%
Max EPS beat(2)0.65%
EPS beat(4)3
Avg EPS beat(4)0.32%
Min EPS beat(4)-4.97%
Max EPS beat(4)4.6%
EPS beat(8)5
Avg EPS beat(8)1.76%
EPS beat(12)7
Avg EPS beat(12)0.72%
EPS beat(16)8
Avg EPS beat(16)0.52%
Revenue beat(2)0
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-3%
Max Revenue beat(2)-2.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.54%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.4%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)1
Avg Revenue beat(12)-2.95%
Revenue beat(16)1
Avg Revenue beat(16)-2.77%
PT rev (1m)0.23%
PT rev (3m)2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.31%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 10.08 | ||
| P/S | 1.31 | ||
| P/FCF | 13.45 | ||
| P/OCF | 4.61 | ||
| P/B | 2.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.58 |
EPS(TTM)5.01
EY9.91%
EPS(NY)5.01
Fwd EY9.92%
FCF(TTM)3.76
FCFY7.44%
OCF(TTM)10.96
OCFY21.69%
SpS38.51
BVpS20.77
TBVpS-41.91
PEG (NY)N/A
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 13.56% | ||
| ROCE | 7.28% | ||
| ROIC | 4.88% | ||
| ROICexc | 5.42% | ||
| ROICexgc | 11.61% | ||
| OM | 24.1% | ||
| PM (TTM) | 7.31% | ||
| GM | 46.6% | ||
| FCFM | 9.76% |
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 Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.91 | ||
| Debt/FCF | 22.37 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 81.81% | ||
| Cap/Sales | 18.7% | ||
| Interest Coverage | 2.45 | ||
| Cash Conversion | 60.61% | ||
| Profit Quality | 133.47% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 1.02 |
F-Score7
WACC5.82%
ROIC/WACC0.84
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)8.68%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-1.72%
EPS Next Y-3.56%
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
EPS Next 5YN/A
Revenue 1Y (TTM)1.87%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%2.42%
Revenue Next Year4.29%
Revenue Next 2Y4.95%
Revenue Next 3Y3.4%
Revenue Next 5YN/A
EBIT growth 1Y7.53%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year90.66%
EBIT Next 3Y25.43%
EBIT Next 5YN/A
FCF growth 1Y164.32%
FCF growth 3Y5.91%
FCF growth 5Y-1.13%
OCF growth 1Y33.06%
OCF growth 3Y10.93%
OCF growth 5Y4.65%