ROGERS COMMUNICATION - A (RCI-A.CA) Stock Fundamental Analysis
TSX:RCI-A - CA7751091017 - Common Stock
51.74 CAD
+0.96 (+1.89%)
We assign a fundamental rating of 4 out of 10 to RCI-A. RCI-A was compared to 2 industry peers in the Wireless Telecommunication Services industry. There are concerns on the financial health of RCI-A while its profitability can be described as average. RCI-A is valued correctly, but it does not seem to be growing. RCI-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RCI-A was profitable.
In the past year RCI-A had a positive cash flow from operations.
RCI-A had positive earnings in each of the past 5 years.
RCI-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RCI-A has a Return On Assets of 1.97%. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
RCI-A has a Return On Equity (13.56%) which is comparable to the rest of the industry.
The Return On Invested Capital of RCI-A (4.88%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RCI-A is in line with the industry average of 4.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 13.56% | ||
| ROIC | 4.88% |
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-A has a Profit Margin of 7.31%. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
RCI-A's Profit Margin has declined in the last couple of years.
RCI-A's Operating Margin of 24.10% is in line compared to the rest of the industry. RCI-A outperforms 50.00% of its industry peers.
RCI-A's Operating Margin has been stable in the last couple of years.
RCI-A has a Gross Margin (46.60%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RCI-A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.1% | ||
| PM (TTM) | 7.31% | ||
| GM | 46.6% |
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-A is destroying value.
The number of shares outstanding for RCI-A has been increased compared to 1 year ago.
RCI-A has more shares outstanding than it did 5 years ago.
RCI-A has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that RCI-A is in the distress zone and has some risk of bankruptcy.
RCI-A has a better Altman-Z score (1.02) than 100.00% of its industry peers.
The Debt to FCF ratio of RCI-A is 22.37, which is on the high side as it means it would take RCI-A, 22.37 years of fcf income to pay off all of its debts.
RCI-A has a Debt to FCF ratio of 22.37. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
RCI-A has a Debt/Equity ratio of 3.91. This is a high value indicating a heavy dependency on external financing.
RCI-A has a Debt to Equity ratio (3.91) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.91 | ||
| Debt/FCF | 22.37 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.8
WACC6.13%
2.3 Liquidity
RCI-A has a Current Ratio of 1.70. This is a normal value and indicates that RCI-A is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.70, RCI-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that RCI-A should not have too much problems paying its short term obligations.
RCI-A has a Quick ratio (1.64) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.68% over the past year.
The Earnings Per Share has been growing slightly by 4.02% on average over the past years.
Looking at the last year, RCI-A shows a small growth in Revenue. The Revenue has grown by 1.87% in the last year.
RCI-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.45% yearly.
EPS 1Y (TTM)8.68%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-1.72%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%2.42%
3.2 Future
Based on estimates for the next years, RCI-A will show a small growth in Earnings Per Share. The EPS will grow by 1.05% on average per year.
Based on estimates for the next years, RCI-A will show a small growth in Revenue. The Revenue will grow by 3.40% on average per year.
EPS Next Y-3.56%
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
EPS Next 5YN/A
Revenue Next Year4.31%
Revenue Next 2Y5%
Revenue Next 3Y3.4%
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.
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-A is valuated reasonably with a Price/Earnings ratio of 10.33.
The rest of the industry has a similar Price/Earnings ratio as RCI-A.
The average S&P500 Price/Earnings ratio is at 27.03. RCI-A is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.33, which indicates a very decent valuation of RCI-A.
RCI-A's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.54. RCI-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCI-A is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCI-A is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.57
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
5. Dividend
5.1 Amount
RCI-A has a Yearly Dividend Yield of 4.06%, which is a nice return.
RCI-A's Dividend Yield is rather good when compared to the industry average which is at 4.06. RCI-A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, RCI-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
5.2 History
The dividend of RCI-A decreases each year by -7.00%.
RCI-A has paid a dividend for at least 10 years, which is a reliable track record.
RCI-A 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
48.65% of the earnings are spent on dividend by RCI-A. This is a bit on the high side, but may be sustainable.
DP48.65%
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
TSX:RCI-A (9/10/2025, 7:00:00 PM)
51.74
+0.96 (+1.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.32%
Inst Owner ChangeN/A
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap27.95B
Analysts76.8
Price Target57.91 (11.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend1.39
Dividend Growth(5Y)-7%
DP48.65%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.16%
Min EPS beat(2)-4.97%
Max EPS beat(2)0.65%
EPS beat(4)3
Avg EPS beat(4)0.32%
Min EPS beat(4)-4.97%
Max EPS beat(4)4.6%
EPS beat(8)5
Avg EPS beat(8)1.76%
EPS beat(12)7
Avg EPS beat(12)0.72%
EPS beat(16)8
Avg EPS beat(16)0.52%
Revenue beat(2)0
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-3%
Max Revenue beat(2)-2.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.54%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.4%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)1
Avg Revenue beat(12)-2.95%
Revenue beat(16)1
Avg Revenue beat(16)-2.77%
PT rev (1m)3.24%
PT rev (3m)1.8%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-6.31%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 10.33 | ||
| P/S | 1.34 | ||
| P/FCF | 13.77 | ||
| P/OCF | 4.72 | ||
| P/B | 2.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.63 |
EPS(TTM)5.01
EY9.68%
EPS(NY)5.01
Fwd EY9.68%
FCF(TTM)3.76
FCFY7.26%
OCF(TTM)10.96
OCFY21.18%
SpS38.51
BVpS20.77
TBVpS-41.91
PEG (NY)N/A
PEG (5Y)2.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 13.56% | ||
| ROCE | 7.28% | ||
| ROIC | 4.88% | ||
| ROICexc | 5.42% | ||
| ROICexgc | 11.61% | ||
| OM | 24.1% | ||
| PM (TTM) | 7.31% | ||
| GM | 46.6% | ||
| FCFM | 9.76% |
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 Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.91 | ||
| Debt/FCF | 22.37 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 81.81% | ||
| Cap/Sales | 18.7% | ||
| Interest Coverage | 2.45 | ||
| Cash Conversion | 60.61% | ||
| Profit Quality | 133.47% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 1.02 |
F-Score7
WACC6.13%
ROIC/WACC0.8
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)8.68%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-1.72%
EPS Next Y-3.56%
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
EPS Next 5YN/A
Revenue 1Y (TTM)1.87%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%2.42%
Revenue Next Year4.31%
Revenue Next 2Y5%
Revenue Next 3Y3.4%
Revenue Next 5YN/A
EBIT growth 1Y7.53%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year90.66%
EBIT Next 3Y25.43%
EBIT Next 5YN/A
FCF growth 1Y164.32%
FCF growth 3Y5.91%
FCF growth 5Y-1.13%
OCF growth 1Y33.06%
OCF growth 3Y10.93%
OCF growth 5Y4.65%