ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
NYSE:RCI - New York Stock Exchange, Inc. - CA7751092007 - Common Stock
Taking everything into account, RCI scores 4 out of 10 in our fundamental rating. RCI was compared to 22 industry peers in the Wireless Telecommunication Services industry. While RCI is still in line with the averages on profitability rating, there are concerns on its financial health. RCI has a correct valuation and a medium growth rate. Finally RCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RCI had positive earnings in the past year.
In the past year RCI had a positive cash flow from operations.
RCI had positive earnings in 4 of the past 5 years.
Of the past 5 years RCI 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.16%, RCI is doing good in the industry, outperforming 61.90% of the companies in the same industry.
RCI has a Return On Equity of 13.35%. This is in the better half of the industry: RCI outperforms 76.19% of its industry peers.
The Return On Invested Capital of RCI (5.26%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RCI is in line with the industry average of 6.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 13.35% | ||
| ROIC | 5.26% |
ROA(3y)2.65%
ROA(5y)3.51%
ROE(3y)13.19%
ROE(5y)15.58%
ROIC(3y)5.47%
ROIC(5y)6.11%
1.3 Margins
Looking at the Profit Margin, with a value of 7.35%, RCI is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of RCI has declined.
With an excellent Operating Margin value of 23.46%, RCI belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of RCI has declined.
With a Gross Margin value of 46.01%, RCI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
RCI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.46% | ||
| PM (TTM) | 7.35% | ||
| GM | 46.01% |
OM growth 3Y-0.25%
OM growth 5Y-1.56%
PM growth 3Y-27.29%
PM growth 5Y-20.26%
GM growth 3Y1.83%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCI is creating some value.
There is no outstanding debt for RCI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that RCI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.89, RCI is doing worse than 66.67% of the companies in the same industry.
RCI has a debt to FCF ratio of 24.54. This is a negative value and a sign of low solvency as RCI would need 24.54 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.54, RCI is doing worse than 76.19% of the companies in the same industry.
A Debt/Equity ratio of 3.79 is on the high side and indicates that RCI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.79, RCI is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.79 | ||
| Debt/FCF | 24.54 | ||
| Altman-Z | 0.89 |
ROIC/WACC1.05
WACC4.99%
2.3 Liquidity
A Current Ratio of 0.68 indicates that RCI may have some problems paying its short term obligations.
RCI has a Current ratio of 0.68. This is amonst the worse of the industry: RCI underperforms 90.48% of its industry peers.
A Quick Ratio of 0.64 indicates that RCI may have some problems paying its short term obligations.
The Quick ratio of RCI (0.64) is worse than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.49% over the past year.
RCI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.18% yearly.
RCI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.78%.
The Revenue has been growing slightly by 5.04% on average over the past years.
EPS 1Y (TTM)6.49%
EPS 3Y10.58%
EPS 5Y1.18%
EPS Q2Q%11.81%
Revenue 1Y (TTM)12.78%
Revenue growth 3Y11.53%
Revenue growth 5Y5.04%
Sales Q2Q%-2%
3.2 Future
RCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.11% yearly.
The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y10.11%
EPS Next 2Y8.74%
EPS Next 3Y8.11%
EPS Next 5YN/A
Revenue Next Year6.27%
Revenue Next 2Y4.36%
Revenue Next 3Y3.77%
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
A Price/Earnings ratio of 8.59 indicates a reasonable valuation of RCI.
Compared to the rest of the industry, the Price/Earnings ratio of RCI indicates a rather cheap valuation: RCI is cheaper than 95.24% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RCI to the average of the S&P500 Index (28.29), we can say RCI is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.56, the valuation of RCI can be described as very cheap.
Based on the Price/Forward Earnings ratio, RCI is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. RCI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 7.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCI indicates a slightly more expensive valuation: RCI is more expensive than 61.90% of the companies listed in the same industry.
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 | 11.7 | ||
| EV/EBITDA | 6.77 |
4.3 Compensation for Growth
RCI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.85
PEG (5Y)7.29
EPS Next 2Y8.74%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.88%, RCI is a good candidate for dividend investing.
In the last 3 months the price of RCI has falen by -23.88%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.35, RCI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, RCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
5.2 History
The dividend of RCI decreases each year by -0.67%.
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)-0.67%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
49.80% of the earnings are spent on dividend by RCI. This is a bit on the high side, but may be sustainable.
DP49.8%
EPS Next 2Y8.74%
EPS Next 3Y8.11%
ROGERS COMMUNICATIONS INC-B
NYSE:RCI (1/21/2025, 8:23:21 PM)
After market: 28.3 +0.03 (+0.11%)28.27
+0.06 (+0.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners62.22%
Inst Owner Change0.32%
Ins Owners1.04%
Ins Owner ChangeN/A
Market Cap15.16B
Analysts79.17
Price Target45.73 (61.76%)
Short Float %1.53%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
Yearly Dividend1.86
Dividend Growth(5Y)-0.67%
DP49.8%
Div Incr Years0
Div Non Decr Years21
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1%
Min EPS beat(2)-3.01%
Max EPS beat(2)1.02%
EPS beat(4)2
Avg EPS beat(4)0.39%
Min EPS beat(4)-3.01%
Max EPS beat(4)5.33%
EPS beat(8)5
Avg EPS beat(8)1.65%
EPS beat(12)6
Avg EPS beat(12)0.86%
EPS beat(16)7
Avg EPS beat(16)1.02%
Revenue beat(2)0
Avg Revenue beat(2)-3.48%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-3.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-3.3%
Revenue beat(8)1
Avg Revenue beat(8)-3.21%
Revenue beat(12)1
Avg Revenue beat(12)-2.81%
Revenue beat(16)2
Avg Revenue beat(16)-2.76%
PT rev (1m)-6.8%
PT rev (3m)-11.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.91%
EPS NY rev (1m)0%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 7.56 | ||
| P/S | 1.07 | ||
| P/FCF | 11.7 | ||
| P/OCF | 3.7 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.77 |
EPS(TTM)3.29
EY11.64%
EPS(NY)3.74
Fwd EY13.23%
FCF(TTM)2.42
FCFY8.55%
OCF(TTM)7.65
OCFY27.06%
SpS26.41
BVpS14.55
TBVpS-29.69
PEG (NY)0.85
PEG (5Y)7.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 13.35% | ||
| ROCE | 8.14% | ||
| ROIC | 5.26% | ||
| ROICexc | 5.33% | ||
| ROICexgc | 12.16% | ||
| OM | 23.46% | ||
| PM (TTM) | 7.35% | ||
| GM | 46.01% | ||
| FCFM | 9.15% |
ROA(3y)2.65%
ROA(5y)3.51%
ROE(3y)13.19%
ROE(5y)15.58%
ROIC(3y)5.47%
ROIC(5y)6.11%
ROICexc(3y)5.55%
ROICexc(5y)6.29%
ROICexgc(3y)10.39%
ROICexgc(5y)11.18%
ROCE(3y)8.52%
ROCE(5y)9.52%
ROICexcg growth 3Y-2.95%
ROICexcg growth 5Y-7.26%
ROICexc growth 3Y-11.43%
ROICexc growth 5Y-12.32%
OM growth 3Y-0.25%
OM growth 5Y-1.56%
PM growth 3Y-27.29%
PM growth 5Y-20.26%
GM growth 3Y1.83%
GM growth 5Y2.32%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.79 | ||
| Debt/FCF | 24.54 | ||
| Debt/EBITDA | 4.51 | ||
| Cap/Depr | 86.64% | ||
| Cap/Sales | 19.81% | ||
| Interest Coverage | 2.31 | ||
| Cash Conversion | 62.51% | ||
| Profit Quality | 124.4% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.89 |
F-Score7
WACC4.99%
ROIC/WACC1.05
Cap/Depr(3y)107.05%
Cap/Depr(5y)104.17%
Cap/Sales(3y)20.14%
Cap/Sales(5y)19.29%
Profit Quality(3y)103.05%
Profit Quality(5y)102.59%
High Growth Momentum
Growth
EPS 1Y (TTM)6.49%
EPS 3Y10.58%
EPS 5Y1.18%
EPS Q2Q%11.81%
EPS Next Y10.11%
EPS Next 2Y8.74%
EPS Next 3Y8.11%
EPS Next 5YN/A
Revenue 1Y (TTM)12.78%
Revenue growth 3Y11.53%
Revenue growth 5Y5.04%
Sales Q2Q%-2%
Revenue Next Year6.27%
Revenue Next 2Y4.36%
Revenue Next 3Y3.77%
Revenue Next 5YN/A
EBIT growth 1Y10.7%
EBIT growth 3Y11.25%
EBIT growth 5Y3.41%
EBIT Next Year117.25%
EBIT Next 3Y32.66%
EBIT Next 5YN/A
FCF growth 1Y44.14%
FCF growth 3Y-14.66%
FCF growth 5Y-3.43%
OCF growth 1Y31.79%
OCF growth 3Y6.51%
OCF growth 5Y4.02%