ROGERS COMMUNICATION - A (RCI-A.CA) Stock Fundamental Analysis
TSX:RCI-A - Toronto Stock Exchange - CA7751091017 - Common Stock - Currency: CAD
Overall RCI-A gets a fundamental rating of 4 out of 10. We evaluated RCI-A against 2 industry peers in the Wireless Telecommunication Services industry. RCI-A has a medium profitability rating, but doesn't score so well on its financial health evaluation. RCI-A is not valued too expensively and it also shows a decent growth rate. RCI-A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RCI-A had positive earnings in the past year.
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.
In the past 5 years RCI-A always reported a positive cash flow from operatings.
1.2 Ratios
RCI-A has a Return On Assets (1.97%) which is in line with its industry peers.
RCI-A has a Return On Equity of 13.56%. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
RCI-A has a Return On Invested Capital (4.88%) which is in line with its industry peers.
RCI-A had an Average Return On Invested Capital over the past 3 years of 5.27%. This 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 has a Operating Margin (24.10%) which is comparable to the rest of the industry.
RCI-A's Operating Margin has been stable in the last couple of years.
RCI-A has a Gross Margin of 46.60%. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
RCI-A's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, RCI-A has a worse debt to assets ratio.
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.
With an excellent Altman-Z score value of 1.02, RCI-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
RCI-A has a debt to FCF ratio of 22.37. This is a negative value and a sign of low solvency as RCI-A would need 22.37 years to pay back of all of its debts.
RCI-A has a Debt to FCF ratio (22.37) which is comparable to the rest of the industry.
A Debt/Equity ratio of 3.91 is on the high side and indicates that RCI-A has dependencies on debt financing.
The Debt to Equity ratio of RCI-A (3.91) 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/WACC0.85
WACC5.76%
2.3 Liquidity
A Current Ratio of 1.70 indicates that RCI-A should not have too much problems paying its short term obligations.
RCI-A has a Current ratio of 1.70. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
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 of 1.64. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
RCI-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.68%, which is quite good.
The Earnings Per Share has been growing slightly by 4.02% on average over the past years.
RCI-A shows a small growth in Revenue. In the last year, the Revenue has grown by 1.87%.
Measured over the past years, RCI-A shows a small growth in Revenue. The Revenue has been growing by 6.45% on average per year.
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
The Earnings Per Share is expected to grow by 4.00% on average over the next years.
Based on estimates for the next years, RCI-A will show a small growth in Revenue. The Revenue will grow by 2.90% on average per year.
EPS Next Y-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue Next Year4.33%
Revenue Next 2Y4.56%
Revenue Next 3Y2.9%
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 stable.
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
With a Price/Earnings ratio of 10.34, the valuation of RCI-A can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as RCI-A.
Compared to an average S&P500 Price/Earnings ratio of 26.82, RCI-A is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.99, the valuation of RCI-A can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCI-A is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 35.24. RCI-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
RCI-A's Enterprise Value to EBITDA ratio is in line with the industry average.
RCI-A's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.79 | ||
| EV/EBITDA | 6.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.57
EPS Next 2Y1.52%
EPS Next 3Y4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.13%, RCI-A is a good candidate for dividend investing.
RCI-A's Dividend Yield is rather good when compared to the industry average which is at 4.13. RCI-A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, RCI-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
5.2 History
The dividend of RCI-A decreases each year by -7.00%.
RCI-A has been paying a dividend for at least 10 years, so it has 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
RCI-A pays out 48.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP48.65%
EPS Next 2Y1.52%
EPS Next 3Y4%
TSX:RCI-A (8/18/2025, 7:00:00 PM)
51.8
+0.9 (+1.77%)
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 Cap27.98B
Analysts76.8
Price Target57.89 (11.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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)0.75%
PT rev (3m)-2.44%
EPS NQ rev (1m)-2.79%
EPS NQ rev (3m)-6.31%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)2.9%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)2.95%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.34 | ||
| Fwd PE | 9.99 | ||
| P/S | 1.35 | ||
| P/FCF | 13.79 | ||
| P/OCF | 4.73 | ||
| P/B | 2.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.64 |
EPS(TTM)5.01
EY9.67%
EPS(NY)5.18
Fwd EY10.01%
FCF(TTM)3.76
FCFY7.25%
OCF(TTM)10.96
OCFY21.16%
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
WACC5.76%
ROIC/WACC0.85
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-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue 1Y (TTM)1.87%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%2.42%
Revenue Next Year4.33%
Revenue Next 2Y4.56%
Revenue Next 3Y2.9%
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%