ROGERS COMMUNICATIONS INC-B (RCI-B.CA) Stock Fundamental Analysis
TSX:RCI-B - Toronto Stock Exchange - CA7751092007 - Common Stock - Currency: CAD
RCI-B gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 2 industry peers in the Wireless Telecommunication Services industry. RCI-B has an excellent profitability rating, but there are some minor concerns on its financial health. RCI-B is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
RCI-B had positive earnings in the past year.
RCI-B had a positive operating cash flow in the past year.
In the past 5 years RCI-B has always been profitable.
In the past 5 years RCI-B always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.43%, RCI-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
RCI-B has a Return On Equity of 16.67%. This is amongst the best in the industry. RCI-B outperforms 100.00% of its industry peers.
RCI-B's Return On Invested Capital of 5.56% is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
RCI-B 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 3 year average ROIC (5.27%) for RCI-B is below the current ROIC(5.56%), indicating increased profibility in the last year.
| 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-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RCI-B has declined.
With an excellent Operating Margin value of 24.27%, RCI-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RCI-B has remained more or less at the same level.
RCI-B has a better Gross Margin (46.68%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of RCI-B has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCI-B is creating some value.
Compared to 1 year ago, RCI-B has more shares outstanding
Compared to 5 years ago, RCI-B has more shares outstanding
The debt/assets ratio for RCI-B is higher compared to a year ago.
2.2 Solvency
RCI-B has an Altman-Z score of 0.84. This is a bad value and indicates that RCI-B is not financially healthy and even has some risk of bankruptcy.
RCI-B's Altman-Z score of 0.84 is in line compared to the rest of the industry. RCI-B outperforms 50.00% of its industry peers.
RCI-B has a debt to FCF ratio of 30.40. This is a negative value and a sign of low solvency as RCI-B would need 30.40 years to pay back of all of its debts.
RCI-B has a Debt to FCF ratio of 30.40. This is amongst the best in the industry. RCI-B outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 4.17 is on the high side and indicates that RCI-B has dependencies on debt financing.
RCI-B's Debt to Equity ratio of 4.17 is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 30.4 | ||
| Altman-Z | 0.84 |
ROIC/WACC1.02
WACC5.43%
2.3 Liquidity
RCI-B has a Current Ratio of 0.66. This is a bad value and indicates that RCI-B is not financially healthy enough and could expect problems in meeting its short term obligations.
RCI-B's Current ratio of 0.66 is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
RCI-B has a Quick Ratio of 0.66. This is a bad value and indicates that RCI-B is not financially healthy enough and could expect problems in meeting its short term obligations.
RCI-B's Quick ratio of 0.61 is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
RCI-B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.71%, which is quite good.
The Earnings Per Share has been growing slightly by 4.02% on average over the past years.
Looking at the last year, RCI-B shows a small growth in Revenue. The Revenue has grown by 6.71% in the last year.
The Revenue has been growing slightly by 6.45% on average over the past years.
EPS 1Y (TTM)11.71%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-3.7%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%-2.28%
3.2 Future
Based on estimates for the next years, RCI-B will show a small growth in Earnings Per Share. The EPS will grow by 4.00% on average per year.
Based on estimates for the next years, RCI-B will show a small growth in Revenue. The Revenue will grow by 2.05% on average per year.
EPS Next Y-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue Next Year1.85%
Revenue Next 2Y2.01%
Revenue Next 3Y2.05%
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 stable.
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
A Price/Earnings ratio of 7.01 indicates a rather cheap valuation of RCI-B.
Compared to the rest of the industry, the Price/Earnings ratio of RCI-B indicates a rather cheap valuation: RCI-B is cheaper than 100.00% of the companies listed in the same industry.
RCI-B's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
With a Price/Forward Earnings ratio of 6.75, the valuation of RCI-B can be described as very cheap.
100.00% of the companies in the same industry are more expensive than RCI-B, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RCI-B to the average of the S&P500 Index (21.38), we can say RCI-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.01 | ||
| Fwd PE | 6.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCI-B is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RCI-B is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.01 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
RCI-B has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.74
EPS Next 2Y1.52%
EPS Next 3Y4%
5. Dividend
5.1 Amount
RCI-B has a Yearly Dividend Yield of 5.58%, which is a nice return.
Compared to an average industry Dividend Yield of 5.58, RCI-B has a dividend in line with its industry peers.
RCI-B's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
5.2 History
The dividend of RCI-B decreases each year by -7.00%.
RCI-B has been paying a dividend for at least 10 years, so it has a reliable track record.
RCI-B 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
42.62% of the earnings are spent on dividend by RCI-B. This is a bit on the high side, but may be sustainable.
DP42.62%
EPS Next 2Y1.52%
EPS Next 3Y4%
TSX:RCI-B (4/24/2025, 7:00:00 PM)
34.98
+0.14 (+0.4%)
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 Cap18.82B
Analysts76.67
Price Target55.52 (58.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
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)-0.13%
PT rev (3m)-15.53%
EPS NQ rev (1m)-2.37%
EPS NQ rev (3m)-14.5%
EPS NY rev (1m)-1.19%
EPS NY rev (3m)-8.02%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.01 | ||
| Fwd PE | 6.75 | ||
| P/S | 0.91 | ||
| P/FCF | 12.01 | ||
| P/OCF | 3.31 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.47 |
EPS(TTM)4.99
EY14.27%
EPS(NY)5.18
Fwd EY14.82%
FCF(TTM)2.91
FCFY8.33%
OCF(TTM)10.56
OCFY30.18%
SpS38.29
BVpS19.33
TBVpS-44.11
PEG (NY)N/A
PEG (5Y)1.74
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 | 0.84 |
F-Score7
WACC5.43%
ROIC/WACC1.02
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)11.71%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-3.7%
EPS Next Y-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%-2.28%
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 Year91.99%
EBIT Next 3Y26.14%
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%