ROGERS COMMUNICATIONS INC-B (RCI-B.CA) Stock Fundamental Analysis
TSX:RCI-B - Toronto Stock Exchange - CA7751092007 - Common Stock - Currency: CAD
Overall RCI-B gets a fundamental rating of 6 out of 10. We evaluated RCI-B against 2 industry peers in the Wireless Telecommunication Services industry. RCI-B scores excellent on profitability, but there are some minor concerns on its financial health. RCI-B may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
RCI-B had positive earnings in the past year.
In the past year RCI-B had a positive cash flow from operations.
Each year in the past 5 years RCI-B has been profitable.
In the past 5 years RCI-B always reported a positive cash flow from operatings.
1.2 Ratios
RCI-B's Return On Assets of 2.40% is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 16.54%, RCI-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
RCI-B's Return On Invested Capital of 5.29% is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCI-B is in line with the industry average of 5.29%.
The 3 year average ROIC (5.27%) for RCI-B is below the current ROIC(5.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 16.54% | ||
| ROIC | 5.29% |
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-B's Profit Margin of 8.50% is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of RCI-B has declined.
With an excellent Operating Margin value of 24.30%, RCI-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RCI-B has remained more or less at the same level.
RCI-B's Gross Margin of 46.70% is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of RCI-B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.3% | ||
| PM (TTM) | 8.5% | ||
| GM | 46.7% |
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-B has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RCI-B has been increased compared to 1 year ago.
Compared to 5 years ago, RCI-B has more shares outstanding
RCI-B has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that RCI-B is in the distress zone and has some risk of bankruptcy.
RCI-B has a Altman-Z score (0.95) which is in line with its industry peers.
The Debt to FCF ratio of RCI-B is 28.17, which is on the high side as it means it would take RCI-B, 28.17 years of fcf income to pay off all of its debts.
RCI-B has a better Debt to FCF ratio (28.17) than 100.00% of its industry peers.
A Debt/Equity ratio of 4.37 is on the high side and indicates that RCI-B has dependencies on debt financing.
RCI-B has a better Debt to Equity ratio (4.37) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | 28.17 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.91
WACC5.84%
2.3 Liquidity
RCI-B has a Current Ratio of 1.00. This is a bad value and indicates that RCI-B is not financially healthy enough and could expect problems in meeting its short term obligations.
RCI-B has a better Current ratio (1.00) than 100.00% of its industry peers.
RCI-B has a Quick Ratio of 1.00. This is a bad value and indicates that RCI-B is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.94, RCI-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
RCI-B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.53%, which is quite good.
RCI-B shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.02% yearly.
Looking at the last year, RCI-B shows a small growth in Revenue. The Revenue has grown by 1.50% in the last year.
The Revenue has been growing slightly by 6.45% on average over the past years.
EPS 1Y (TTM)12.53%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%0%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%1.53%
3.2 Future
RCI-B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.00% yearly.
Based on estimates for the next years, RCI-B will show a small growth in Revenue. The Revenue will grow by 1.76% on average per year.
EPS Next Y-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue Next Year1.34%
Revenue Next 2Y1.8%
Revenue Next 3Y1.76%
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.
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
With a Price/Earnings ratio of 9.05, the valuation of RCI-B can be described as very reasonable.
RCI-B's Price/Earnings ratio is rather cheap when compared to the industry. RCI-B is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.51. RCI-B is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.78, which indicates a very decent valuation of RCI-B.
Based on the Price/Forward Earnings ratio, RCI-B is valued cheaper than 100.00% of the companies in the same industry.
RCI-B is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
RCI-B's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RCI-B is cheaper than 100.00% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than RCI-B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.04 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
The excellent profitability rating of RCI-B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y1.52%
EPS Next 3Y4%
5. Dividend
5.1 Amount
RCI-B has a Yearly Dividend Yield of 4.45%, which is a nice return.
RCI-B's Dividend Yield is comparable with the industry average which is at 4.45.
RCI-B's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
5.2 History
The dividend of RCI-B decreases each year by -7.00%.
RCI-B has been paying a dividend for at least 10 years, so it has a reliable track record.
RCI-B 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
41.75% of the earnings are spent on dividend by RCI-B. This is a bit on the high side, but may be sustainable.
DP41.75%
EPS Next 2Y1.52%
EPS Next 3Y4%
TSX:RCI-B (7/14/2025, 7:00:00 PM)
45.53
-0.29 (-0.63%)
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 Cap24.60B
Analysts76.67
Price Target52.35 (14.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend1.39
Dividend Growth(5Y)-7%
DP41.75%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.19%
Min EPS beat(2)-4.97%
Max EPS beat(2)4.6%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-4.97%
Max EPS beat(4)4.6%
EPS beat(8)4
Avg EPS beat(8)0.05%
EPS beat(12)6
Avg EPS beat(12)0.53%
EPS beat(16)7
Avg EPS beat(16)0.27%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-3%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.84%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.4%
Revenue beat(8)1
Avg Revenue beat(8)-2.86%
Revenue beat(12)1
Avg Revenue beat(12)-2.86%
Revenue beat(16)1
Avg Revenue beat(16)-2.79%
PT rev (1m)0.42%
PT rev (3m)-5.71%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-9.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 8.78 | ||
| P/S | 1.19 | ||
| P/FCF | 14.04 | ||
| P/OCF | 4.24 | ||
| P/B | 2.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.11 |
EPS(TTM)5.03
EY11.05%
EPS(NY)5.18
Fwd EY11.39%
FCF(TTM)3.24
FCFY7.12%
OCF(TTM)10.73
OCFY23.56%
SpS38.28
BVpS19.67
TBVpS-43.27
PEG (NY)N/A
PEG (5Y)2.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 16.54% | ||
| ROCE | 7.95% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.51% | ||
| ROICexgc | 12.07% | ||
| OM | 24.3% | ||
| PM (TTM) | 8.5% | ||
| GM | 46.7% | ||
| FCFM | 8.47% |
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-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | 28.17 | ||
| Debt/EBITDA | 4.78 | ||
| Cap/Depr | 86.06% | ||
| Cap/Sales | 19.56% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 59.61% | ||
| Profit Quality | 99.66% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 0.95 |
F-Score6
WACC5.84%
ROIC/WACC0.91
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)12.53%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%0%
EPS Next Y-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue 1Y (TTM)1.5%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%1.53%
Revenue Next Year1.34%
Revenue Next 2Y1.8%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
EBIT growth 1Y11.52%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year90.66%
EBIT Next 3Y25.43%
EBIT Next 5YN/A
FCF growth 1Y132.05%
FCF growth 3Y5.91%
FCF growth 5Y-1.13%
OCF growth 1Y40.24%
OCF growth 3Y10.93%
OCF growth 5Y4.65%