ROGERS COMMUNICATIONS INC-B (RCI-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RCI-B - CA7751092007 - Common Stock
50.01 CAD
-0.51 (-1.01%)
We assign a fundamental rating of 6 out of 10 to RCI-B. RCI-B was compared to 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- RCI-B had positive earnings in the past year.
- In the past year RCI-B had a positive cash flow from operations.
- Each year in the past 5 years RCI-B has been profitable.
- RCI-B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RCI-B has a better Return On Assets (7.53%) than 100.00% of its industry peers.
- RCI-B has a better Return On Equity (39.83%) than 100.00% of its industry peers.
- The Return On Invested Capital of RCI-B (4.32%) is better than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RCI-B is in line with the industry average of 4.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 39.83% | ||
| ROIC | 4.32% |
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 has a better Profit Margin (32.11%) than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of RCI-B has declined.
- Looking at the Operating Margin, with a value of 23.36%, 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 Operating Margin of RCI-B has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 45.97%, 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 Gross Margin of RCI-B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.36% | ||
| PM (TTM) | 32.11% | ||
| GM | 45.97% |
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.
- 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
- Based on the Altman-Z score of 0.81, we must say that RCI-B is in the distress zone and has some risk of bankruptcy.
- RCI-B's Altman-Z score of 0.81 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 26.81. This is a negative value and a sign of low solvency as RCI-B would need 26.81 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 26.81, RCI-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- RCI-B has a Debt/Equity ratio of 2.52. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.52, RCI-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 26.81 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.7
WACC6.14%
2.3 Liquidity
- A Current Ratio of 0.62 indicates that RCI-B may have some problems paying its short term obligations.
- RCI-B has a better Current ratio (0.62) than 100.00% of its industry peers.
- RCI-B has a Quick Ratio of 0.62. 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 0.59 is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- RCI-B shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.20%.
- Measured over the past 5 years, RCI-B shows a small growth in Earnings Per Share. The EPS has been growing by 4.02% on average per year.
- The Revenue has been growing slightly by 2.75% in the past year.
- RCI-B shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.45% yearly.
EPS 1Y (TTM)4.2%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-3.52%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.27%
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 1.45% on average per year.
- RCI-B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.61% yearly.
EPS Next Y-1.55%
EPS Next 2Y0%
EPS Next 3Y1.45%
EPS Next 5YN/A
Revenue Next Year4.7%
Revenue Next 2Y5.14%
Revenue Next 3Y3.61%
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
- A Price/Earnings ratio of 10.08 indicates a reasonable valuation of RCI-B.
- 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.
- RCI-B is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- RCI-B is valuated reasonably with a Price/Forward Earnings ratio of 9.94.
- 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 25.96, RCI-B is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCI-B indicates a rather cheap valuation: RCI-B is cheaper than 100.00% of the companies listed in the same industry.
- 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 | 16.11 | ||
| EV/EBITDA | 6.86 |
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)2.51
EPS Next 2Y0%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
- RCI-B has a Yearly Dividend Yield of 3.91%. Purely for dividend investing, there may be better candidates out there.
- RCI-B's Dividend Yield is comparable with the industry average which is at 3.91.
- Compared to an average S&P500 Dividend Yield of 1.82, RCI-B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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
- RCI-B pays out 12.21% of its income as dividend. This is a sustainable payout ratio.
DP12.21%
EPS Next 2Y0%
EPS Next 3Y1.45%
ROGERS COMMUNICATIONS INC-B / RCI-B.CA FAQ
Can you provide the ChartMill fundamental rating for ROGERS COMMUNICATIONS INC-B?
ChartMill assigns a fundamental rating of 6 / 10 to RCI-B.CA.
What is the valuation status of ROGERS COMMUNICATIONS INC-B (RCI-B.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to ROGERS COMMUNICATIONS INC-B (RCI-B.CA). This can be considered as Undervalued.
What is the profitability of RCI-B stock?
ROGERS COMMUNICATIONS INC-B (RCI-B.CA) has a profitability rating of 8 / 10.
How financially healthy is ROGERS COMMUNICATIONS INC-B?
The financial health rating of ROGERS COMMUNICATIONS INC-B (RCI-B.CA) is 4 / 10.
What is the expected EPS growth for ROGERS COMMUNICATIONS INC-B (RCI-B.CA) stock?
The Earnings per Share (EPS) of ROGERS COMMUNICATIONS INC-B (RCI-B.CA) is expected to decline by -1.55% in the next year.