ROGERS COMMUNICATION - A (RCI-A.CA) Stock Fundamental Analysis
Canada - TSX:RCI-A - CA7751091017 - Common Stock
49.99 CAD
+0.16 (+0.32%)
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. While RCI-A is still in line with the averages on profitability rating, there are concerns on its financial health. RCI-A has a valuation in line with the averages, but it does not seem to be growing. 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.
Each year in the past 5 years RCI-A has been profitable.
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 (1.97%) which is comparable to the rest of the industry.
With a Return On Equity value of 13.56%, RCI-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
RCI-A's Return On Invested Capital of 4.88% is in line compared to the rest of the industry. RCI-A outperforms 50.00% of 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 4.88%.
| 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
With a Profit Margin value of 7.31%, RCI-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RCI-A has declined.
The Operating Margin of RCI-A (24.10%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RCI-A has remained more or less at the same level.
Looking at the Gross Margin, with a value of 46.60%, 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 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
RCI-A has an Altman-Z score of 1.01. This is a bad value and indicates that RCI-A is not financially healthy and even has some risk of bankruptcy.
RCI-A's Altman-Z score of 1.01 is amongst the best of the industry. RCI-A outperforms 100.00% of its industry peers.
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 in line with its industry peers.
A Debt/Equity ratio of 3.91 is on the high side and indicates that RCI-A has dependencies on debt 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 | 1.01 |
ROIC/WACC0.73
WACC6.7%
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 (1.70) which is comparable to the rest of the industry.
A Quick Ratio of 1.64 indicates that RCI-A should not have too much problems paying its short term obligations.
RCI-A's Quick ratio of 1.64 is in line compared 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.
RCI-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.02% yearly.
The Revenue has been growing slightly by 1.87% in the past year.
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 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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 9.98 indicates a reasonable valuation of RCI-A.
RCI-A's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.86, RCI-A is valued rather cheaply.
The Price/Forward Earnings ratio is 9.98, which indicates a very decent valuation of RCI-A.
The rest of the industry has a similar Price/Forward Earnings ratio as RCI-A.
The average S&P500 Price/Forward Earnings ratio is at 23.32. RCI-A is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 9.98 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.3 | ||
| EV/EBITDA | 6.54 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.48
EPS Next 2Y-0.19%
EPS Next 3Y1.1%
5. Dividend
5.1 Amount
RCI-A has a Yearly Dividend Yield of 4.07%, which is a nice return.
Compared to an average industry Dividend Yield of 4.07, RCI-A pays a better dividend. On top of this RCI-A pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RCI-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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
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 3Y1.1%
TSX:RCI-A (10/3/2025, 7:00:00 PM)
49.99
+0.16 (+0.32%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.03%
Inst Owner ChangeN/A
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap27.01B
Analysts76.8
Price Target57.02 (14.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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)-2.8%
PT rev (3m)-0.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.86%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 9.98 | ||
| P/S | 1.3 | ||
| P/FCF | 13.3 | ||
| P/OCF | 4.56 | ||
| P/B | 2.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.54 |
EPS(TTM)5.01
EY10.02%
EPS(NY)5.01
Fwd EY10.02%
FCF(TTM)3.76
FCFY7.52%
OCF(TTM)10.96
OCFY21.92%
SpS38.51
BVpS20.77
TBVpS-41.91
PEG (NY)N/A
PEG (5Y)2.48
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 | 1.01 |
F-Score7
WACC6.7%
ROIC/WACC0.73
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 3Y1.1%
EPS Next 5YN/A
Revenue 1Y (TTM)1.87%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%2.42%
Revenue Next Year4.2%
Revenue Next 2Y4.81%
Revenue Next 3Y3.34%
Revenue Next 5YN/A
EBIT growth 1Y7.53%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year91.1%
EBIT Next 3Y26.04%
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%