ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
USA - NYSE:RCI - CA7751092007 - Common Stock
39.74 USD
+0.4 (+1.02%)
39.01 USD
-0.73 (-1.84%)
RCI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. RCI scores excellent on profitability, but there are 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.
In the past year RCI had a positive cash flow from operations.
RCI had positive earnings in each of the past 5 years.
In the past 5 years RCI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RCI (7.53%) is better than 90.91% of its industry peers.
RCI has a better Return On Equity (39.83%) than 95.45% of its industry peers.
RCI has a Return On Invested Capital of 4.32%. This is comparable to the rest of the industry: RCI outperforms 54.55% of its industry peers.
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 5.81%.
| 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
With an excellent Profit Margin value of 32.11%, RCI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RCI has declined.
RCI's Operating Margin of 23.36% is amongst the best of the industry. RCI outperforms 86.36% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RCI is destroying value.
The number of shares outstanding for RCI has been increased compared to 1 year ago.
Compared to 5 years ago, RCI has more shares outstanding
RCI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that RCI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RCI (0.84) is worse than 63.64% 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.
RCI has a worse Debt to FCF ratio (26.81) than 68.18% 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.
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 | 0.84 |
ROIC/WACC0.76
WACC5.69%
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.
RCI's Current ratio of 0.62 is on the low side compared to the rest of the industry. RCI is outperformed by 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.
The Quick ratio of RCI (0.59) is worse than 86.36% of its industry peers.
| 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 4.53%.
The Earnings Per Share has been growing slightly by 4.02% on average over the past years.
The Revenue has been growing slightly by 2.75% in the past year.
RCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.45% yearly.
EPS 1Y (TTM)4.53%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-2.42%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%5.98%
3.2 Future
The Earnings Per Share is expected to grow by 1.10% on average over the next years.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y-3.56%
EPS Next 2Y-0.19%
EPS Next 3Y1.1%
EPS Next 5YN/A
Revenue Next Year4.2%
Revenue Next 2Y4.81%
Revenue Next 3Y3.34%
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 decreasing.
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
Based on the Price/Earnings ratio of 11.16, the valuation of RCI can be described as reasonable.
Based on the Price/Earnings ratio, RCI is valued cheaper than 86.36% of the companies in the same industry.
RCI is valuated cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.09 indicates a reasonable valuation of RCI.
Based on the Price/Forward Earnings ratio, RCI is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
RCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCI is on the same level as its industry peers.
RCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.9 | ||
| EV/EBITDA | 7.17 |
4.3 Compensation for Growth
The decent profitability rating of RCI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.78
EPS Next 2Y-0.19%
EPS Next 3Y1.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.63%, RCI has a reasonable but not impressive dividend return.
RCI's Dividend Yield is comparable with the industry average which is at 8.51.
RCI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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 2Y-0.19%
EPS Next 3Y1.1%
39.74
+0.4 (+1.02%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.03%
Inst Owner Change-0.03%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap21.47B
Revenue(TTM)21.02B
Net Income(TTM)6.75B
Analysts76.8
Price Target40.26 (1.31%)
Short Float %2.38%
Short Ratio8.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend0.99
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)3.06%
Min EPS beat(2)0.65%
Max EPS beat(2)5.47%
EPS beat(4)3
Avg EPS beat(4)1.44%
Min EPS beat(4)-4.97%
Max EPS beat(4)5.47%
EPS beat(8)5
Avg EPS beat(8)0.91%
EPS beat(12)8
Avg EPS beat(12)1.58%
EPS beat(16)9
Avg EPS beat(16)1%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-3%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-2.62%
Revenue beat(12)1
Avg Revenue beat(12)-2.76%
Revenue beat(16)1
Avg Revenue beat(16)-2.57%
PT rev (1m)-0.2%
PT rev (3m)3.52%
EPS NQ rev (1m)-4.12%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 11.09 | ||
| P/S | 1.43 | ||
| P/FCF | 17.9 | ||
| P/OCF | 5.42 | ||
| P/B | 1.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.17 |
EPS(TTM)3.56
EY8.96%
EPS(NY)3.58
Fwd EY9.02%
FCF(TTM)2.22
FCFY5.59%
OCF(TTM)7.34
OCFY18.46%
SpS27.83
BVpS22.43
TBVpS-42.59
PEG (NY)N/A
PEG (5Y)2.78
Graham Number42.39
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 | 0.84 |
F-Score4
WACC5.69%
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)4.53%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-2.42%
EPS Next Y-3.56%
EPS Next 2Y-0.19%
EPS Next 3Y1.1%
EPS Next 5YN/A
Revenue 1Y (TTM)2.75%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%5.98%
Revenue Next Year4.2%
Revenue Next 2Y4.81%
Revenue Next 3Y3.34%
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 11.16 and the Price/Book (PB) ratio is 1.77.
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%.