ROGERS COMMUNICATIONS INC-B (RCI-B.CA) Stock Fundamental Analysis
TSX:RCI-B - Toronto Stock Exchange - CA7751092007 - Common Stock - Currency: CAD
Taking everything into account, RCI-B scores 6 out of 10 in our fundamental rating. RCI-B was compared to 2 industry peers in the Wireless Telecommunication Services industry. RCI-B scores excellent on profitability, but there are concerns on its financial health. RCI-B scores decently on growth, while it is valued quite cheap. This could make an interesting combination. RCI-B also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RCI-B was profitable.
RCI-B had a positive operating cash flow in the past year.
RCI-B had positive earnings in each of the past 5 years.
Each year in the past 5 years RCI-B had a positive operating cash flow.
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's Return On Equity of 16.67% is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
RCI-B has a Return On Invested Capital of 5.56%. This is amongst the best in 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
RCI-B's Profit Margin of 8.42% is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
RCI-B's Profit Margin has declined in the last couple of years.
RCI-B has a better Operating Margin (24.27%) than 100.00% of its industry peers.
RCI-B's Operating Margin has been stable in the last couple of years.
RCI-B has a Gross Margin of 46.68%. This is amongst the best in the industry. RCI-B outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RCI-B is destroying value.
RCI-B has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RCI-B has been increased compared to 5 years ago.
Compared to 1 year ago, RCI-B has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of RCI-B is 30.40, which is on the high side as it means it would take RCI-B, 30.40 years of fcf income to pay off 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 | N/A |
ROIC/WACC0.98
WACC5.69%
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 has a better Current ratio (0.66) than 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.
The Quick ratio of RCI-B (0.61) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.07% 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 6.71% in the past year.
The Revenue has been growing slightly by 6.45% on average over the past years.
EPS 1Y (TTM)10.07%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%22.69%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.01%
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 5.09% 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-0.01%
EPS Next 2Y2.92%
EPS Next 3Y5.09%
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 accelerating.
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 8.11, the valuation of RCI-B can be described as very reasonable.
RCI-B's Price/Earnings ratio is rather cheap when compared to the industry. RCI-B is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, RCI-B is valued rather cheaply.
A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of RCI-B.
100.00% of the companies in the same industry are more expensive than RCI-B, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, RCI-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCI-B is valued cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCI-B indicates a rather cheap valuation: RCI-B is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.01 | ||
| EV/EBITDA | 6.79 |
4.3 Compensation for Growth
The excellent profitability rating of RCI-B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.02
EPS Next 2Y2.92%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.93%, RCI-B is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.93, RCI-B pays a better dividend. On top of this RCI-B pays more dividend than 100.00% of the companies listed in the same industry.
RCI-B's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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 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
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 2Y2.92%
EPS Next 3Y5.09%
TSX:RCI-B (3/7/2025, 7:00:00 PM)
40.81
+0.27 (+0.67%)
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 Cap21.96B
Analysts76.67
Price Target55.59 (36.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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)-6.15%
PT rev (3m)-19.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.19%
EPS NY rev (1m)-3.95%
EPS NY rev (3m)-6.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 8.11 | ||
| P/S | 1.07 | ||
| P/FCF | 14.01 | ||
| P/OCF | 3.87 | ||
| P/B | 2.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.79 |
EPS(TTM)5.03
EY12.33%
EPS(NY)5.03
Fwd EY12.32%
FCF(TTM)2.91
FCFY7.14%
OCF(TTM)10.56
OCFY25.87%
SpS38.29
BVpS19.33
TBVpS-44.11
PEG (NY)N/A
PEG (5Y)2.02
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 | N/A |
F-Score7
WACC5.69%
ROIC/WACC0.98
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)10.07%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%22.69%
EPS Next Y-0.01%
EPS Next 2Y2.92%
EPS Next 3Y5.09%
EPS Next 5YN/A
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.01%
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 Year96.85%
EBIT Next 3YN/A
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%