ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
USA - NYSE:RCI - CA7751092007 - Common Stock
37.73 USD
+0.3 (+0.8%)
37.73 USD
0 (0%)
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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
RCI had positive earnings in the past year.
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
With an excellent Return On Assets value of 7.53%, RCI belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
With an excellent Return On Equity value of 39.83%, RCI belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.32%, RCI is in line with its industry, 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 5.83%.
| 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 Profit Margin of 32.11%. This is amongst the best in the industry. RCI outperforms 100.00% of its industry peers.
RCI's Profit Margin has declined in the last couple of years.
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 has a worse Gross Margin (45.97%) than 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
RCI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
RCI has an Altman-Z score of 0.83. 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 (0.83) is worse than 63.64% of its industry peers.
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.
RCI's Debt to FCF ratio of 26.81 is on the low side compared to the rest of the industry. RCI is outperformed by 68.18% of its industry peers.
A Debt/Equity ratio of 2.52 is on the high side and indicates that RCI has dependencies on debt financing.
RCI has a worse Debt to Equity ratio (2.52) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 26.81 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.77
WACC5.64%
2.3 Liquidity
RCI has a Current Ratio of 0.62. This is a bad value and indicates that RCI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RCI (0.62) is worse than 86.36% of its industry peers.
RCI has a Quick Ratio of 0.62. This is a bad value and indicates that RCI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.59, RCI is doing worse than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
RCI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.20%.
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.
RCI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.75%.
RCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.45% yearly.
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-2.05%
EPS Next 2Y0.26%
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
RCI is valuated reasonably with a Price/Earnings ratio of 10.66.
81.82% of the companies in the same industry are more expensive than RCI, based on the Price/Earnings ratio.
RCI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.28.
The Price/Forward Earnings ratio is 10.45, which indicates a very decent valuation of RCI.
RCI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RCI is cheaper than 77.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, RCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.66 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
RCI's Enterprise Value to EBITDA is on the same level as the industry average.
RCI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.03 | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
The decent profitability rating of RCI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.65
EPS Next 2Y0.26%
EPS Next 3Y1.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.85%, RCI has a reasonable but not impressive dividend return.
RCI's Dividend Yield is comparable with the industry average which is at 8.92.
Compared to an average S&P500 Dividend Yield of 2.36, RCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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 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
12.21% of the earnings are spent on dividend by RCI. This is a low number and sustainable payout ratio.
DP12.21%
EPS Next 2Y0.26%
EPS Next 3Y1.58%
37.73
+0.3 (+0.8%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.03%
Inst Owner Change-1.63%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap20.38B
Revenue(TTM)21.02B
Net Income(TTM)6.75B
Analysts76.8
Price Target41.88 (11%)
Short Float %2.38%
Short Ratio8.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend0.98
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)4%
PT rev (3m)3.28%
EPS NQ rev (1m)6.62%
EPS NQ rev (3m)6.62%
EPS NY rev (1m)1.56%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.66 | ||
| Fwd PE | 10.45 | ||
| P/S | 1.36 | ||
| P/FCF | 17.03 | ||
| P/OCF | 5.15 | ||
| P/B | 1.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.02 |
EPS(TTM)3.54
EY9.38%
EPS(NY)3.61
Fwd EY9.56%
FCF(TTM)2.22
FCFY5.87%
OCF(TTM)7.32
OCFY19.4%
SpS27.77
BVpS22.38
TBVpS-42.5
PEG (NY)N/A
PEG (5Y)2.65
Graham Number42.22
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 | 0.83 |
F-Score4
WACC5.64%
ROIC/WACC0.77
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-2.05%
EPS Next 2Y0.26%
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 Year91.1%
EBIT Next 3Y26.04%
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 10.66 and the Price/Book (PB) ratio is 1.69.
How sustainable is the dividend of ROGERS COMMUNICATIONS INC-B (RCI) stock?
The dividend rating of ROGERS COMMUNICATIONS INC-B (RCI) is 6 / 10 and the dividend payout ratio is 12.21%.