ROGERS COMMUNICATION - A (RCI-A.CA) Stock Fundamental Analysis
Canada - TSX:RCI-A - CA7751091017 - Common Stock
52.62 CAD
+0.32 (+0.61%)
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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
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 (1.97%) which is in line with its industry peers.
RCI-A has a Return On Equity (13.56%) which is in line with its industry peers.
RCI-A has a Return On Invested Capital (4.88%) which 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 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
RCI-A has a Profit Margin of 7.31%. This is comparable 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.
RCI-A has a Operating Margin of 24.10%. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
RCI-A's Operating Margin has been stable in the last couple of years.
RCI-A has a Gross Margin of 46.60%. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
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
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.
The debt/assets ratio for RCI-A is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that RCI-A is in the distress zone and has some risk of bankruptcy.
RCI-A's Altman-Z score of 1.02 is amongst the best of the industry. RCI-A outperforms 100.00% of its industry peers.
RCI-A has a debt to FCF ratio of 22.37. This is a negative value and a sign of low solvency as RCI-A would need 22.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 22.37, RCI-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
RCI-A has a Debt/Equity ratio of 3.91. This is a high value indicating a heavy dependency on external financing.
RCI-A has a Debt to Equity ratio of 3.91. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.91 | ||
| Debt/FCF | 22.37 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.71
WACC6.88%
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.
RCI-A has a Quick Ratio of 1.64. This is a normal value and indicates that RCI-A is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RCI-A (1.64) 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
The Earnings Per Share has grown by an nice 8.68% over the past year.
The Earnings Per Share has been growing slightly by 4.02% on average over the past years.
The Revenue has been growing slightly by 1.87% in the past year.
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
RCI-A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.10% yearly.
RCI-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.34% yearly.
EPS Next Y-3.56%
EPS Next 2Y-0.19%
EPS Next 3Y1.1%
EPS Next 5YN/A
Revenue Next Year4.2%
Revenue Next 2Y4.81%
Revenue Next 3Y3.34%
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.
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
With a Price/Earnings ratio of 10.50, the valuation of RCI-A can be described as very reasonable.
RCI-A's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.31. RCI-A is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.50, which indicates a very decent valuation of RCI-A.
RCI-A's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of RCI-A to the average of the S&P500 Index (22.85), we can say RCI-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCI-A.
RCI-A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14 | ||
| EV/EBITDA | 6.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.61
EPS Next 2Y-0.19%
EPS Next 3Y1.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.94%, RCI-A has a reasonable but not impressive dividend return.
RCI-A's Dividend Yield is rather good when compared to the industry average which is at 3.94. 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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
48.65% of the earnings are spent on dividend by RCI-A. This is a bit on the high side, but may be sustainable.
DP48.65%
EPS Next 2Y-0.19%
EPS Next 3Y1.1%
TSX:RCI-A (10/16/2025, 7:00:00 PM)
52.62
+0.32 (+0.61%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.03%
Inst Owner ChangeN/A
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap28.43B
Analysts76.8
Price Target57.02 (8.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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)-1.53%
PT rev (3m)-0.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.86%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 10.5 | ||
| P/S | 1.37 | ||
| P/FCF | 14 | ||
| P/OCF | 4.8 | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)5.01
EY9.52%
EPS(NY)5.01
Fwd EY9.52%
FCF(TTM)3.76
FCFY7.14%
OCF(TTM)10.96
OCFY20.83%
SpS38.51
BVpS20.77
TBVpS-41.91
PEG (NY)N/A
PEG (5Y)2.61
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
WACC6.88%
ROIC/WACC0.71
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 3Y1.1%
EPS Next 5YN/A
Revenue 1Y (TTM)1.87%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%2.42%
Revenue Next Year4.2%
Revenue Next 2Y4.81%
Revenue Next 3Y3.34%
Revenue Next 5YN/A
EBIT growth 1Y7.53%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year91.1%
EBIT Next 3Y26.04%
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%