ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
USA - NYSE:RCI - CA7751092007 - Common Stock
35.75 USD
-0.05 (-0.14%)
35.7613 USD
+0.01 (+0.03%)
RCI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. There are concerns on the financial health of RCI while its profitability can be described as average. RCI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RCI was profitable.
RCI had a positive operating cash flow in the past year.
Each year in the past 5 years RCI has been profitable.
In the past 5 years RCI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RCI (1.97%) is comparable to the rest of the industry.
RCI has a better Return On Equity (13.56%) than 72.73% of its industry peers.
RCI has a Return On Invested Capital (4.88%) which is comparable to the rest of the industry.
RCI had an Average Return On Invested Capital over the past 3 years of 5.27%. This is in line with the industry average of 6.09%.
| 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 has a better Profit Margin (7.31%) than 68.18% of its industry peers.
In the last couple of years the Profit Margin of RCI has declined.
RCI has a Operating Margin of 24.10%. This is amongst the best in the industry. RCI outperforms 86.36% of its industry peers.
In the last couple of years the Operating Margin of RCI has remained more or less at the same level.
RCI has a Gross Margin of 46.60%. This is in the lower half of the industry: RCI underperforms 63.64% of its industry peers.
RCI'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 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RCI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RCI has been increased compared to 5 years ago.
Compared to 1 year ago, RCI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that RCI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RCI (1.01) is comparable to the rest of the industry.
RCI has a debt to FCF ratio of 22.37. This is a negative value and a sign of low solvency as RCI would need 22.37 years to pay back of all of its debts.
RCI has a worse Debt to FCF ratio (22.37) than 63.64% of its industry peers.
A Debt/Equity ratio of 3.91 is on the high side and indicates that RCI has dependencies on debt financing.
The Debt to Equity ratio of RCI (3.91) is worse than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.91 | ||
| Debt/FCF | 22.37 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.86
WACC5.71%
2.3 Liquidity
A Current Ratio of 1.70 indicates that RCI should not have too much problems paying its short term obligations.
RCI has a Current ratio of 1.70. This is in the better half of the industry: RCI outperforms 68.18% of its industry peers.
A Quick Ratio of 1.64 indicates that RCI should not have too much problems paying its short term obligations.
RCI's Quick ratio of 1.64 is fine compared to the rest of the industry. RCI outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
RCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.68%, which is quite good.
RCI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.02% yearly.
RCI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.87%.
Measured over the past years, RCI shows a small growth in Revenue. The Revenue has been growing by 6.45% on average per year.
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 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 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.
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 9.82, the valuation of RCI can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RCI indicates a rather cheap valuation: RCI is cheaper than 86.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, RCI is valued rather cheaply.
RCI is valuated reasonably with a Price/Forward Earnings ratio of 9.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCI indicates a rather cheap valuation: RCI is cheaper than 86.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. RCI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCI is on the same level as its industry peers.
RCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.08 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
RCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.44
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, RCI is a good candidate for dividend investing.
RCI's Dividend Yield is comparable with the industry average which is at 5.28.
RCI'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 decreases each year by -7.00%.
RCI has paid a dividend for at least 10 years, which is a reliable track record.
RCI 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
RCI 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%
35.75
-0.05 (-0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.32%
Inst Owner Change2.5%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap19.31B
Analysts76.8
Price Target40.35 (12.87%)
Short Float %2.17%
Short Ratio6.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend1
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)-2.89%
Revenue beat(16)1
Avg Revenue beat(16)-2.73%
PT rev (1m)-0.49%
PT rev (3m)6.23%
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 | 9.82 | ||
| Fwd PE | 9.81 | ||
| P/S | 1.28 | ||
| P/FCF | 13.08 | ||
| P/OCF | 4.49 | ||
| P/B | 2.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.49 |
EPS(TTM)3.64
EY10.18%
EPS(NY)3.64
Fwd EY10.2%
FCF(TTM)2.73
FCFY7.65%
OCF(TTM)7.97
OCFY22.3%
SpS28.01
BVpS15.11
TBVpS-30.48
PEG (NY)N/A
PEG (5Y)2.44
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 | 1.01 |
F-Score7
WACC5.71%
ROIC/WACC0.86
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%