ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
NYSE:RCI - New York Stock Exchange, Inc. - CA7751092007 - Common Stock - Currency: USD
RCI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. RCI has a medium profitability rating, but doesn't score so well on its financial health evaluation. RCI has a correct valuation and a medium growth rate. RCI also has an excellent dividend rating.
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.
RCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RCI has a Return On Assets (2.40%) which is comparable to the rest of the industry.
RCI has a Return On Equity of 16.54%. This is amongst the best in the industry. RCI outperforms 85.71% of its industry peers.
RCI has a Return On Invested Capital (5.29%) 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 6.34%.
The last Return On Invested Capital (5.29%) for RCI is above the 3 year average (5.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 16.54% | ||
| ROIC | 5.29% |
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
The Profit Margin of RCI (8.50%) is better than 71.43% of its industry peers.
In the last couple of years the Profit Margin of RCI has declined.
The Operating Margin of RCI (24.30%) is better than 85.71% of its industry peers.
In the last couple of years the Operating Margin of RCI has remained more or less at the same level.
With a Gross Margin value of 46.70%, RCI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.3% | ||
| PM (TTM) | 8.5% | ||
| GM | 46.7% |
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 is destroying value.
Compared to 1 year ago, RCI has more shares outstanding
The number of shares outstanding for RCI has been increased compared to 5 years ago.
RCI has a worse debt/assets ratio than last year.
2.2 Solvency
RCI has an Altman-Z score of 0.94. This is a bad value and indicates that RCI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RCI (0.94) is comparable to the rest of the industry.
The Debt to FCF ratio of RCI is 28.17, which is on the high side as it means it would take RCI, 28.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RCI (28.17) is worse than 71.43% of its industry peers.
A Debt/Equity ratio of 4.37 is on the high side and indicates that RCI has dependencies on debt financing.
The Debt to Equity ratio of RCI (4.37) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | 28.17 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.91
WACC5.78%
2.3 Liquidity
RCI has a Current Ratio of 1.00. This is a bad value and indicates that RCI is not financially healthy enough and could expect problems in meeting its short term obligations.
RCI has a worse Current ratio (1.00) than 66.67% of its industry peers.
A Quick Ratio of 0.94 indicates that RCI may have some problems paying its short term obligations.
RCI has a worse Quick ratio (0.94) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.53% over the past year.
Measured over the past 5 years, RCI shows a small growth in Earnings Per Share. The EPS has been growing by 4.02% on average per year.
Looking at the last year, RCI shows a small growth in Revenue. The Revenue has grown by 1.50% in the last year.
The Revenue has been growing slightly by 6.45% on average over the past years.
EPS 1Y (TTM)12.53%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%0%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%1.53%
3.2 Future
The Earnings Per Share is expected to grow by 4.00% on average over the next years.
RCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
EPS Next Y-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue Next Year1.34%
Revenue Next 2Y1.8%
Revenue Next 3Y1.76%
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 8.76 indicates a reasonable valuation of RCI.
RCI's Price/Earnings ratio is rather cheap when compared to the industry. RCI is cheaper than 85.71% of the companies in the same industry.
RCI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 8.50, the valuation of RCI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCI indicates a rather cheap valuation: RCI is cheaper than 80.95% of the companies listed in the same industry.
RCI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 8.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.53 | ||
| EV/EBITDA | 7.02 |
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)2.18
EPS Next 2Y1.52%
EPS Next 3Y4%
5. Dividend
5.1 Amount
RCI has a Yearly Dividend Yield of 4.56%, which is a nice return.
RCI's Dividend Yield is a higher than the industry average which is at 5.06.
Compared to an average S&P500 Dividend Yield of 2.37, RCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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 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 pays out 41.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.75%
EPS Next 2Y1.52%
EPS Next 3Y4%
32.25
+0.4 (+1.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.32%
Inst Owner Change0%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap17.35B
Analysts76.67
Price Target38.18 (18.39%)
Short Float %2.24%
Short Ratio7.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend1.02
Dividend Growth(5Y)-7%
DP41.75%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.19%
Min EPS beat(2)-4.97%
Max EPS beat(2)4.6%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-4.97%
Max EPS beat(4)4.6%
EPS beat(8)4
Avg EPS beat(8)0.05%
EPS beat(12)6
Avg EPS beat(12)0.53%
EPS beat(16)7
Avg EPS beat(16)0.27%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-3%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.84%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.4%
Revenue beat(8)1
Avg Revenue beat(8)-2.86%
Revenue beat(12)1
Avg Revenue beat(12)-2.8%
Revenue beat(16)1
Avg Revenue beat(16)-2.74%
PT rev (1m)1.22%
PT rev (3m)-1.11%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-11.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 8.5 | ||
| P/S | 1.15 | ||
| P/FCF | 13.53 | ||
| P/OCF | 4.09 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.02 |
EPS(TTM)3.68
EY11.41%
EPS(NY)3.8
Fwd EY11.77%
FCF(TTM)2.38
FCFY7.39%
OCF(TTM)7.89
OCFY24.45%
SpS28.14
BVpS14.46
TBVpS-31.81
PEG (NY)N/A
PEG (5Y)2.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 16.54% | ||
| ROCE | 7.95% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.51% | ||
| ROICexgc | 12.07% | ||
| OM | 24.3% | ||
| PM (TTM) | 8.5% | ||
| GM | 46.7% | ||
| FCFM | 8.47% |
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-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | 28.17 | ||
| Debt/EBITDA | 4.78 | ||
| Cap/Depr | 86.06% | ||
| Cap/Sales | 19.56% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 59.61% | ||
| Profit Quality | 99.66% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 0.94 |
F-Score6
WACC5.78%
ROIC/WACC0.91
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)12.53%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%0%
EPS Next Y-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue 1Y (TTM)1.5%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%1.53%
Revenue Next Year1.34%
Revenue Next 2Y1.8%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
EBIT growth 1Y11.52%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year90.66%
EBIT Next 3Y25.43%
EBIT Next 5YN/A
FCF growth 1Y132.05%
FCF growth 3Y5.91%
FCF growth 5Y-1.13%
OCF growth 1Y40.24%
OCF growth 3Y10.93%
OCF growth 5Y4.65%