ROGERS COMMUNICATION - A (RCI-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RCI-A - CA7751091017 - Common Stock
51.25 CAD
+0.54 (+1.06%)
Taking everything into account, RCI-A scores 4 out of 10 in our fundamental rating. 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 has a valuation in line with the averages, but it does not seem to be growing. Finally 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.
- In the past 5 years RCI-A always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 7.53%, RCI-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 39.83%, RCI-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
- RCI-A has a Return On Invested Capital (4.32%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for RCI-A is in line with the industry average of 4.32%.
| 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
- Looking at the Profit Margin, with a value of 32.11%, RCI-A is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of RCI-A has declined.
- With a Operating Margin value of 23.36%, RCI-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of RCI-A has remained more or less at the same level.
- RCI-A's Gross Margin of 45.97% is in line compared to the rest of the industry. RCI-A outperforms 50.00% of its industry peers.
- In the last couple of years the Gross Margin of RCI-A 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-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, RCI-A has more shares outstanding
- Compared to 5 years ago, RCI-A has more shares outstanding
- RCI-A has a worse debt/assets ratio than last year.
2.2 Solvency
- RCI-A has an Altman-Z score of 0.82. This is a bad value and indicates that RCI-A is not financially healthy and even has some risk of bankruptcy.
- RCI-A has a Altman-Z score of 0.82. This is amongst the best in the industry. RCI-A outperforms 100.00% of its industry peers.
- RCI-A has a debt to FCF ratio of 26.81. This is a negative value and a sign of low solvency as RCI-A would need 26.81 years to pay back of all of its debts.
- RCI-A has a Debt to FCF ratio (26.81) which is in line with its industry peers.
- A Debt/Equity ratio of 2.52 is on the high side and indicates that RCI-A has dependencies on debt financing.
- RCI-A has a Debt to Equity ratio (2.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 26.81 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.64
WACC6.74%
2.3 Liquidity
- RCI-A has a Current Ratio of 0.62. This is a bad value and indicates that RCI-A is not financially healthy enough and could expect problems in meeting its short term obligations.
- RCI-A has a Current ratio of 0.62. This is comparable to the rest of the industry: RCI-A outperforms 50.00% of its industry peers.
- A Quick Ratio of 0.59 indicates that RCI-A may have some problems paying its short term obligations.
- With a Quick ratio value of 0.59, RCI-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.20% over the past year.
- 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.
- The Revenue has been growing slightly by 6.45% on average over the past years.
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
- RCI-A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.52% yearly.
- Based on estimates for the next years, RCI-A will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y-1.81%
EPS Next 2Y0.33%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue Next Year4.7%
Revenue Next 2Y5.14%
Revenue Next 3Y3.61%
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
- A Price/Earnings ratio of 10.33 indicates a reasonable valuation of RCI-A.
- The rest of the industry has a similar Price/Earnings ratio as RCI-A.
- RCI-A's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 10.12, which indicates a very decent valuation of RCI-A.
- Based on the Price/Forward Earnings ratio, RCI-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- RCI-A is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 10.12 |
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 | 16.51 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.57
EPS Next 2Y0.33%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
- RCI-A has a Yearly Dividend Yield of 4.05%, which is a nice return.
- RCI-A's Dividend Yield is rather good when compared to the industry average which is at 4.05. RCI-A pays more dividend than 100.00% of the companies in the same industry.
- RCI-A's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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 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
- RCI-A pays out 12.21% of its income as dividend. This is a sustainable payout ratio.
DP12.21%
EPS Next 2Y0.33%
EPS Next 3Y1.52%
ROGERS COMMUNICATION - A / RCI-A.CA FAQ
What is the ChartMill fundamental rating of ROGERS COMMUNICATION - A (RCI-A.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to RCI-A.CA.
Can you provide the valuation status for ROGERS COMMUNICATION - A?
ChartMill assigns a valuation rating of 5 / 10 to ROGERS COMMUNICATION - A (RCI-A.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for ROGERS COMMUNICATION - A?
ROGERS COMMUNICATION - A (RCI-A.CA) has a profitability rating of 5 / 10.
Can you provide the financial health for RCI-A stock?
The financial health rating of ROGERS COMMUNICATION - A (RCI-A.CA) is 2 / 10.
Can you provide the dividend sustainability for RCI-A stock?
The dividend rating of ROGERS COMMUNICATION - A (RCI-A.CA) is 8 / 10 and the dividend payout ratio is 12.21%.