ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
NYSE:RCI - New York Stock Exchange, Inc. - CA7751092007 - Common Stock - Currency: USD
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 belongs to the best of the industry regarding profitability, 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.
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
RCI's Return On Assets of 2.43% is fine compared to the rest of the industry. RCI outperforms 61.90% of its industry peers.
RCI has a better Return On Equity (16.67%) than 80.95% of its industry peers.
With a Return On Invested Capital value of 5.56%, RCI perfoms like the industry average, outperforming 52.38% 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 6.52%.
The last Return On Invested Capital (5.56%) for RCI is above the 3 year average (5.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 16.67% | ||
| ROIC | 5.56% |
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 a decent Profit Margin value of 8.42%, RCI is doing good in 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.
The Operating Margin of RCI (24.27%) is better than 95.24% of its industry peers.
In the last couple of years the Operating Margin of RCI has remained more or less at the same level.
With a Gross Margin value of 46.68%, RCI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.27% | ||
| PM (TTM) | 8.42% | ||
| GM | 46.68% |
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.
RCI has more shares outstanding than it did 5 years ago.
RCI has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of RCI is 30.40, which is on the high side as it means it would take RCI, 30.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RCI (30.40) is worse than 76.19% of its industry peers.
RCI has a Debt/Equity ratio of 4.17. This is a high value indicating a heavy dependency on external financing.
RCI has a Debt to Equity ratio of 4.17. This is amonst the worse of the industry: RCI underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 30.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.99
WACC5.6%
2.3 Liquidity
A Current Ratio of 0.66 indicates that RCI may have some problems paying its short term obligations.
With a Current ratio value of 0.66, RCI is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
RCI has a Quick Ratio of 0.66. 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 Quick ratio of 0.61 is on the low side compared to the rest of the industry. RCI is outperformed by 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
RCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.07%, which is quite good.
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 6.71% in the past year.
Measured over the past years, RCI shows a small growth in Revenue. The Revenue has been growing by 6.45% on average per year.
EPS 1Y (TTM)10.07%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%22.69%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.01%
3.2 Future
The Earnings Per Share is expected to grow by 4.29% on average over the next years.
Based on estimates for the next years, RCI will show a small growth in Revenue. The Revenue will grow by 2.35% on average per year.
EPS Next Y4.1%
EPS Next 2Y4.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.29%
Revenue Next 2Y2.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 7.96 indicates a rather cheap 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.
RCI is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.65, which indicates a rather cheap valuation of RCI.
90.48% of the companies in the same industry are more expensive than RCI, based on the Price/Forward Earnings ratio.
RCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCI.
Based on the Price/Free Cash Flow ratio, RCI is valued a bit more expensive than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.71 | ||
| EV/EBITDA | 6.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RCI does not grow enough to justify the current Price/Earnings ratio.
RCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)1.98
EPS Next 2Y4.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RCI has a Yearly Dividend Yield of 5.04%, which is a nice return.
The stock price of RCI dropped by -20.32% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 5.05, RCI pays a bit more dividend than its industry peers.
RCI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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
42.62% of the earnings are spent on dividend by RCI. This is a bit on the high side, but may be sustainable.
DP42.62%
EPS Next 2Y4.29%
EPS Next 3YN/A
28.19
+0.15 (+0.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.23%
Inst Owner Change1.51%
Ins Owners1.04%
Ins Owner ChangeN/A
Market Cap15.11B
Analysts76.67
Price Target41.24 (46.29%)
Short Float %1.48%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
Yearly Dividend1.39
Dividend Growth(5Y)-7%
DP42.62%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.81%
Min EPS beat(2)1.02%
Max EPS beat(2)4.6%
EPS beat(4)2
Avg EPS beat(4)0.2%
Min EPS beat(4)-3.01%
Max EPS beat(4)4.6%
EPS beat(8)5
Avg EPS beat(8)1.28%
EPS beat(12)7
Avg EPS beat(12)1.39%
EPS beat(16)8
Avg EPS beat(16)1.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.5%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.4%
Revenue beat(8)1
Avg Revenue beat(8)-3.06%
Revenue beat(12)1
Avg Revenue beat(12)-2.82%
Revenue beat(16)2
Avg Revenue beat(16)-2.49%
PT rev (1m)-9.82%
PT rev (3m)-17.9%
EPS NQ rev (1m)-14.19%
EPS NQ rev (3m)-12.16%
EPS NY rev (1m)-3.09%
EPS NY rev (3m)-3.55%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 7.65 | ||
| P/S | 1.04 | ||
| P/FCF | 13.71 | ||
| P/OCF | 3.78 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.73 |
EPS(TTM)3.54
EY12.56%
EPS(NY)3.68
Fwd EY13.07%
FCF(TTM)2.06
FCFY7.3%
OCF(TTM)7.46
OCFY26.45%
SpS27.04
BVpS13.65
TBVpS-31.15
PEG (NY)1.94
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 16.67% | ||
| ROCE | 8.5% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 12.85% | ||
| OM | 24.27% | ||
| PM (TTM) | 8.42% | ||
| GM | 46.68% | ||
| FCFM | 7.61% |
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%
ROICexcg growth 3Y1.64%
ROICexcg 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-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 30.4 | ||
| Debt/EBITDA | 4.48 | ||
| Cap/Depr | 87.9% | ||
| Cap/Sales | 19.96% | ||
| Interest Coverage | 2.4 | ||
| Cash Conversion | 58.68% | ||
| Profit Quality | 90.37% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | N/A |
F-Score7
WACC5.6%
ROIC/WACC0.99
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)10.07%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%22.69%
EPS Next Y4.1%
EPS Next 2Y4.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.01%
Revenue Next Year2.29%
Revenue Next 2Y2.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.13%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year96.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.18%
FCF growth 3Y5.91%
FCF growth 5Y-1.13%
OCF growth 1Y8.79%
OCF growth 3Y10.93%
OCF growth 5Y4.65%