ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RCI - CA7751092007 - Common Stock
37.22 USD
+0.42 (+1.14%)
37.14 USD
-0.08 (-0.21%)
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 has a great profitability rating, there are quite some concerns on its financial health. RCI is valued correctly, but it does not seem to be growing. RCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RCI was profitable.
In the past year RCI had a positive cash flow from operations.
RCI had positive earnings in each of the past 5 years.
Each year in the past 5 years RCI had a positive operating cash flow.
1.2 Ratios
RCI's Return On Assets of 7.53% is amongst the best of the industry. RCI outperforms 86.36% of its industry peers.
RCI has a Return On Equity of 39.83%. This is amongst the best in the industry. RCI outperforms 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.
The Average Return On Invested Capital over the past 3 years for RCI is in line with the industry average of 6.45%.
| 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
The Profit Margin of RCI (32.11%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of RCI has declined.
With an excellent Operating Margin value of 23.36%, RCI belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
RCI's Operating Margin has been stable in the last couple of years.
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.
In the last couple of years the Gross Margin of RCI 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 is destroying value.
The number of shares outstanding for RCI has been increased compared to 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 0.82, we must say that RCI is in the distress zone and has some risk of bankruptcy.
RCI has a worse Altman-Z score (0.82) than 68.18% of its industry peers.
RCI has a debt to FCF ratio of 26.81. This is a negative value and a sign of low solvency as RCI would need 26.81 years to pay back of all of its debts.
With a Debt to FCF ratio value of 26.81, RCI is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
RCI has a Debt/Equity ratio of 2.52. This is a high value indicating a heavy dependency on external financing.
RCI's Debt to Equity ratio of 2.52 is on the low side compared to the rest of the industry. RCI is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 26.81 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.76
WACC5.71%
2.3 Liquidity
A Current Ratio of 0.62 indicates that RCI may have some problems paying its short term obligations.
The Current ratio of RCI (0.62) is worse than 81.82% of its industry peers.
A Quick Ratio of 0.59 indicates that RCI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.59, RCI is doing worse than 81.82% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 2.75% in the past 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 1.58% on average per year.
Based on estimates for the next years, RCI will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y-1.91%
EPS Next 2Y0.27%
EPS Next 3Y1.58%
EPS Next 5YN/A
Revenue Next Year4.66%
Revenue Next 2Y5.12%
Revenue Next 3Y3.59%
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
Based on the Price/Earnings ratio of 10.34, the valuation of RCI can be described as reasonable.
Based on the Price/Earnings ratio, RCI is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.22, RCI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.15, the valuation of RCI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCI indicates a somewhat cheap valuation: RCI is cheaper than 77.27% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RCI to the average of the S&P500 Index (23.58), we can say RCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCI is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCI indicates a slightly more expensive valuation: RCI is more expensive than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.53 | ||
| EV/EBITDA | 6.94 |
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)2.57
EPS Next 2Y0.27%
EPS Next 3Y1.58%
5. Dividend
5.1 Amount
RCI has a Yearly Dividend Yield of 4.01%, which is a nice return.
Compared to an average industry Dividend Yield of 5.55, RCI has a dividend in line with its industry peers.
RCI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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 12.21% of its income as dividend. This is a sustainable payout ratio.
DP12.21%
EPS Next 2Y0.27%
EPS Next 3Y1.58%
37.22
+0.42 (+1.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.03%
Inst Owner Change1.39%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap20.11B
Revenue(TTM)21.02B
Net Income(TTM)6.75B
Analysts76.8
Price Target42.66 (14.62%)
Short Float %1.74%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend1.01
Dividend Growth(5Y)-7%
DP12.21%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.79%
Min EPS beat(2)0.65%
Max EPS beat(2)4.93%
EPS beat(4)3
Avg EPS beat(4)1.3%
Min EPS beat(4)-4.97%
Max EPS beat(4)4.93%
EPS beat(8)5
Avg EPS beat(8)0.84%
EPS beat(12)8
Avg EPS beat(12)1.53%
EPS beat(16)9
Avg EPS beat(16)0.97%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-2.44%
Max Revenue beat(2)-2.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-3%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-2.82%
Revenue beat(12)1
Avg Revenue beat(12)-2.89%
Revenue beat(16)1
Avg Revenue beat(16)-2.67%
PT rev (1m)1.87%
PT rev (3m)5.73%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)5.65%
EPS NY rev (1m)0.15%
EPS NY rev (3m)1.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 10.15 | ||
| P/S | 1.32 | ||
| P/FCF | 16.53 | ||
| P/OCF | 5 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.94 |
EPS(TTM)3.6
EY9.67%
EPS(NY)3.67
Fwd EY9.85%
FCF(TTM)2.25
FCFY6.05%
OCF(TTM)7.44
OCFY19.99%
SpS28.22
BVpS22.74
TBVpS-43.18
PEG (NY)N/A
PEG (5Y)2.57
Graham Number42.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 39.83% | ||
| ROCE | 6.59% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.4% | ||
| ROICexgc | 12.27% | ||
| OM | 23.36% | ||
| PM (TTM) | 32.11% | ||
| GM | 45.97% | ||
| FCFM | 7.98% |
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%
ROICexgc growth 3Y1.64%
ROICexgc 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-Score4
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 26.81 | ||
| Debt/EBITDA | 4.39 | ||
| Cap/Depr | 80.02% | ||
| Cap/Sales | 18.39% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 56.9% | ||
| Profit Quality | 24.85% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.82 |
F-Score4
WACC5.71%
ROIC/WACC0.76
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)4.2%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-3.52%
EPS Next Y-1.91%
EPS Next 2Y0.27%
EPS Next 3Y1.58%
EPS Next 5YN/A
Revenue 1Y (TTM)2.75%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.27%
Revenue Next Year4.66%
Revenue Next 2Y5.12%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
EBIT growth 1Y2.31%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year90.66%
EBIT Next 3Y26%
EBIT Next 5YN/A
FCF growth 1Y44.82%
FCF growth 3Y5.91%
FCF growth 5Y-1.13%
OCF growth 1Y11.13%
OCF growth 3Y10.93%
OCF growth 5Y4.65%
ROGERS COMMUNICATIONS INC-B / RCI FAQ
What is the fundamental rating for RCI stock?
ChartMill assigns a fundamental rating of 4 / 10 to RCI.
Can you provide the valuation status for ROGERS COMMUNICATIONS INC-B?
ChartMill assigns a valuation rating of 5 / 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.
What are the PE and PB ratios of ROGERS COMMUNICATIONS INC-B (RCI) stock?
The Price/Earnings (PE) ratio for ROGERS COMMUNICATIONS INC-B (RCI) is 10.34 and the Price/Book (PB) ratio is 1.64.
How sustainable is the dividend of ROGERS COMMUNICATIONS INC-B (RCI) stock?
The dividend rating of ROGERS COMMUNICATIONS INC-B (RCI) is 7 / 10 and the dividend payout ratio is 12.21%.