ROGERS COMMUNICATIONS INC-B (RCI-B.CA) Stock Fundamental Analysis
Canada - TSX:RCI-B - CA7751092007 - Common Stock
49.53 CAD
-0.21 (-0.42%)
We assign a fundamental rating of 6 out of 10 to RCI-B. RCI-B was compared to 2 industry peers in the Wireless Telecommunication Services industry. RCI-B has an excellent profitability rating, but there are some minor concerns on its financial health. RCI-B has a bad growth rate and is valued cheaply. With these ratings, RCI-B could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
RCI-B had positive earnings in the past year.
RCI-B had a positive operating cash flow in the past year.
Each year in the past 5 years RCI-B has been profitable.
Each year in the past 5 years RCI-B had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RCI-B (1.97%) is better than 100.00% of its industry peers.
The Return On Equity of RCI-B (13.56%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 4.88%, RCI-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RCI-B 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
Looking at the Profit Margin, with a value of 7.31%, RCI-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
RCI-B's Profit Margin has declined in the last couple of years.
RCI-B has a better Operating Margin (24.10%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of RCI-B has remained more or less at the same level.
RCI-B has a better Gross Margin (46.60%) than 100.00% of its industry peers.
RCI-B'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RCI-B is destroying value.
RCI-B has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RCI-B has been increased compared to 5 years ago.
The debt/assets ratio for RCI-B is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that RCI-B is in the distress zone and has some risk of bankruptcy.
RCI-B's Altman-Z score of 1.01 is in line compared to the rest of the industry. RCI-B outperforms 50.00% of its industry peers.
The Debt to FCF ratio of RCI-B is 22.37, which is on the high side as it means it would take RCI-B, 22.37 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RCI-B (22.37) is better than 100.00% of its industry peers.
RCI-B has a Debt/Equity ratio of 3.91. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.91, RCI-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.91 | ||
| Debt/FCF | 22.37 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.8
WACC6.11%
2.3 Liquidity
A Current Ratio of 1.70 indicates that RCI-B should not have too much problems paying its short term obligations.
The Current ratio of RCI-B (1.70) is better than 100.00% of its industry peers.
RCI-B has a Quick Ratio of 1.64. This is a normal value and indicates that RCI-B is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RCI-B (1.64) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.64 |
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 8.68%, which is quite good.
The Earnings Per Share has been growing slightly by 4.02% on average over the past years.
The Revenue has been growing slightly by 1.87% in the past year.
RCI-B 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-B will show a small growth in Earnings Per Share. The EPS will grow by 1.05% on average per year.
The Revenue is expected to grow by 3.40% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
RCI-B is valuated reasonably with a Price/Earnings ratio of 9.89.
100.00% of the companies in the same industry are more expensive than RCI-B, based on the Price/Earnings ratio.
RCI-B is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.88, which indicates a very decent valuation of RCI-B.
100.00% of the companies in the same industry are more expensive than RCI-B, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.73. RCI-B is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 9.88 |
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.
RCI-B's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RCI-B is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.18 | ||
| EV/EBITDA | 6.52 |
4.3 Compensation for Growth
The excellent profitability rating of RCI-B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.46
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.06%, RCI-B is a good candidate for dividend investing.
RCI-B's Dividend Yield is comparable with the industry average which is at 4.06.
RCI-B's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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
48.65% of the earnings are spent on dividend by RCI-B. 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-B (9/12/2025, 7:00:00 PM)
49.53
-0.21 (-0.42%)
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 Cap26.76B
Analysts76.8
Price Target55.59 (12.24%)
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)4.14%
PT rev (3m)6.64%
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 | 9.89 | ||
| Fwd PE | 9.88 | ||
| P/S | 1.29 | ||
| P/FCF | 13.18 | ||
| P/OCF | 4.52 | ||
| P/B | 2.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.52 |
EPS(TTM)5.01
EY10.12%
EPS(NY)5.01
Fwd EY10.12%
FCF(TTM)3.76
FCFY7.59%
OCF(TTM)10.96
OCFY22.12%
SpS38.51
BVpS20.77
TBVpS-41.91
PEG (NY)N/A
PEG (5Y)2.46
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
WACC6.11%
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%