ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RCI - CA7751092007 - Common Stock
36.66 USD
+0.17 (+0.47%)
36.54 USD
-0.12 (-0.33%)
We assign a fundamental rating of 4 out of 10 to RCI. RCI was compared to 22 industry peers in the Wireless Telecommunication Services industry. While RCI has a great profitability rating, there are quite some concerns on its financial health. RCI has a valuation in line with the averages, 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.
- RCI had positive earnings in each of the past 5 years.
- RCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RCI has a Return On Assets of 7.53%. This is amongst the best in the industry. RCI outperforms 90.91% of its industry peers.
- The Return On Equity of RCI (39.83%) is better than 95.45% of its industry peers.
- With a Return On Invested Capital value of 4.32%, RCI perfoms like the industry average, outperforming 54.55% of the companies in the same 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 6.55%.
| 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 has a better Profit Margin (32.11%) than 100.00% of its industry peers.
- RCI's Profit Margin has declined in the last couple of years.
- RCI's Operating Margin of 23.36% is amongst the best of the industry. RCI outperforms 90.91% 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's Gross Margin of 45.97% is on the low side compared to the rest of the industry. RCI is outperformed by 63.64% of its industry peers.
- RCI's Gross Margin has improved in the last couple of years.
| 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
- RCI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, RCI has more shares outstanding
- RCI has more shares outstanding than it did 5 years ago.
- RCI has a worse debt/assets ratio than last year.
2.2 Solvency
- RCI has an Altman-Z score of 0.81. This is a bad value and indicates that RCI is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.81, RCI is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- The Debt to FCF ratio of RCI is 26.81, which is on the high side as it means it would take RCI, 26.81 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of RCI (26.81) is worse than 72.73% of its industry peers.
- RCI has a Debt/Equity ratio of 2.52. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.52, RCI is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 26.81 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.71
WACC6.04%
2.3 Liquidity
- A Current Ratio of 0.62 indicates that RCI may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.62, RCI is doing worse than 81.82% of the companies in the same industry.
- A Quick Ratio of 0.59 indicates that RCI may have some problems paying its short term obligations.
- With a Quick ratio value of 0.59, RCI is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.20% 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 2.75% in the last year.
- The Revenue has been growing slightly by 6.45% on average over the past years.
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 will show a small growth in Earnings Per Share. The EPS will grow by 1.45% on average per year.
- The Revenue is expected to grow by 3.61% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 10.13, which indicates a very decent valuation of RCI.
- RCI's Price/Earnings ratio is rather cheap when compared to the industry. RCI is cheaper than 90.91% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, RCI is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.99 indicates a reasonable valuation of RCI.
- 81.82% of the companies in the same industry are more expensive than RCI, based on the Price/Forward Earnings ratio.
- RCI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
- 63.64% of the companies in the same industry are more expensive than RCI, based on the Enterprise Value to EBITDA ratio.
- 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 | 16.19 | ||
| EV/EBITDA | 6.87 |
4.3 Compensation for Growth
- The decent profitability rating of RCI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.52
EPS Next 2Y0%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.91%, RCI has a reasonable but not impressive dividend return.
- RCI's Dividend Yield is comparable with the industry average which is at 3.98.
- Compared to an average S&P500 Dividend Yield of 1.82, RCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
- The dividend of RCI decreases each year by -7.00%.
- RCI has been paying a dividend for at least 10 years, so it has 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
- 12.21% of the earnings are spent on dividend by RCI. This is a low number and sustainable payout ratio.
DP12.21%
EPS Next 2Y0%
EPS Next 3Y1.45%
ROGERS COMMUNICATIONS INC-B / RCI FAQ
What is the fundamental rating for RCI stock?
ChartMill assigns a fundamental rating of 4 / 10 to RCI.
What is the valuation status for RCI stock?
ChartMill assigns a valuation rating of 6 / 10 to ROGERS COMMUNICATIONS INC-B (RCI). This can be considered as Fairly Valued.
What is the profitability of RCI stock?
ROGERS COMMUNICATIONS INC-B (RCI) has a profitability rating of 7 / 10.
Can you provide the financial health for RCI stock?
The financial health rating of ROGERS COMMUNICATIONS INC-B (RCI) is 0 / 10.
Is the dividend of ROGERS COMMUNICATIONS INC-B sustainable?
The dividend rating of ROGERS COMMUNICATIONS INC-B (RCI) is 6 / 10 and the dividend payout ratio is 12.21%.