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ROGERS COMMUNICATIONS INC-B (RCI-B.CA) Stock Fundamental Analysis

TSX:RCI-B - Toronto Stock Exchange - CA7751092007 - Common Stock - Currency: CAD

39.75  -0.36 (-0.9%)

Fundamental Rating

6

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. While RCI-B has a great profitability rating, there are quite some concerns on its financial health. RCI-B is valued quite cheap, while showing a decent growth score. This is a good combination! Finally RCI-B also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year RCI-B was profitable.
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.
Each year in the past 5 years RCI-B had a positive operating cash flow.
RCI-B.CA Yearly Net Income VS EBIT VS OCF VS FCFRCI-B.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

1.2 Ratios

With an excellent Return On Assets value of 2.43%, RCI-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.67%, RCI-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.56%, 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 5.56%.
The 3 year average ROIC (5.27%) for RCI-B is below the current ROIC(5.56%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.43%
ROE 16.67%
ROIC 5.56%
ROA(3y)2.22%
ROA(5y)2.9%
ROE(3y)13.82%
ROE(5y)14.57%
ROIC(3y)5.27%
ROIC(5y)5.77%
RCI-B.CA Yearly ROA, ROE, ROICRCI-B.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

RCI-B has a better Profit Margin (8.42%) than 100.00% of its industry peers.
RCI-B's Profit Margin has declined in the last couple of years.
RCI-B's Operating Margin of 24.27% is amongst the best of the industry. RCI-B outperforms 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.
The Gross Margin of RCI-B (46.68%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of RCI-B has grown nicely.
Industry RankSector Rank
OM 24.27%
PM (TTM) 8.42%
GM 46.68%
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%
RCI-B.CA Yearly Profit, Operating, Gross MarginsRCI-B.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

3

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.
Compared to 1 year ago, RCI-B has more shares outstanding
RCI-B has more shares outstanding than it did 5 years ago.
RCI-B has a worse debt/assets ratio than last year.
RCI-B.CA Yearly Shares OutstandingRCI-B.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
RCI-B.CA Yearly Total Debt VS Total AssetsRCI-B.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

RCI-B has a debt to FCF ratio of 30.40. This is a negative value and a sign of low solvency as RCI-B would need 30.40 years to pay back of all of its debts.
RCI-B has a better Debt to FCF ratio (30.40) than 100.00% of its industry peers.
RCI-B has a Debt/Equity ratio of 4.17. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RCI-B (4.17) is better than 100.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.17
Debt/FCF 30.4
Altman-Z N/A
ROIC/WACC0.99
WACC5.6%
RCI-B.CA Yearly LT Debt VS Equity VS FCFRCI-B.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

RCI-B has a Current Ratio of 0.66. 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's Current ratio of 0.66 is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
A Quick Ratio of 0.61 indicates that RCI-B may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.61, RCI-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.61
RCI-B.CA Yearly Current Assets VS Current LiabilitesRCI-B.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

4

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 10.07%, 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 6.71% in the past year.
The Revenue has been growing slightly by 6.45% on average over the past years.
EPS 1Y (TTM)10.07%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%22.69%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.01%

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 4.29% on average per year.
RCI-B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.35% yearly.
EPS Next Y4.1%
EPS Next 2Y4.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.29%
Revenue Next 2Y2.35%
Revenue Next 3YN/A
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.
RCI-B.CA Yearly Revenue VS EstimatesRCI-B.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B 20B
RCI-B.CA Yearly EPS VS EstimatesRCI-B.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4 5

8

4. Valuation

4.1 Price/Earnings Ratio

RCI-B is valuated cheaply with a Price/Earnings ratio of 7.90.
Based on the Price/Earnings ratio, RCI-B is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of RCI-B to the average of the S&P500 Index (30.19), we can say RCI-B is valued rather cheaply.
A Price/Forward Earnings ratio of 7.59 indicates a rather cheap 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.
RCI-B's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.58.
Industry RankSector Rank
PE 7.9
Fwd PE 7.59
RCI-B.CA Price Earnings VS Forward Price EarningsRCI-B.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RCI-B is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RCI-B is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.6
EV/EBITDA 6.72
RCI-B.CA Per share dataRCI-B.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 -40

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RCI-B does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of RCI-B may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)1.97
EPS Next 2Y4.29%
EPS Next 3YN/A

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.99%, RCI-B is a good candidate for dividend investing.
The stock price of RCI-B dropped by -21.12% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.99, RCI-B pays a better dividend. On top of this RCI-B pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, RCI-B pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.99%

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
RCI-B.CA Yearly Dividends per shareRCI-B.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

42.62% of the earnings are spent on dividend by RCI-B. This is a bit on the high side, but may be sustainable.
DP42.62%
EPS Next 2Y4.29%
EPS Next 3YN/A
RCI-B.CA Yearly Income VS Free CF VS DividendRCI-B.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
RCI-B.CA Dividend Payout.RCI-B.CA Dividend Payout, showing the Payout Ratio.RCI-B.CA Dividend Payout.PayoutRetained Earnings

ROGERS COMMUNICATIONS INC-B

TSX:RCI-B (2/14/2025, 7:00:00 PM)

39.75

-0.36 (-0.9%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)01-30 2025-01-30/bmo
Earnings (Next)04-22 2025-04-22/bmo
Inst Owners62.22%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner ChangeN/A
Market Cap21.31B
Analysts76.67
Price Target59.23 (49.01%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.99%
Yearly Dividend1.39
Dividend Growth(5Y)-7%
DP42.62%
Div Incr Years0
Div Non Decr Years21
Ex-Date03-10 2025-03-10 (0.5)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.81%
Min EPS beat(2)1.02%
Max EPS beat(2)4.6%
EPS beat(4)2
Avg EPS beat(4)0.2%
Min EPS beat(4)-3.01%
Max EPS beat(4)4.6%
EPS beat(8)5
Avg EPS beat(8)1.28%
EPS beat(12)7
Avg EPS beat(12)1.39%
EPS beat(16)8
Avg EPS beat(16)1.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.5%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1.4%
Revenue beat(8)1
Avg Revenue beat(8)-3.15%
Revenue beat(12)1
Avg Revenue beat(12)-2.88%
Revenue beat(16)2
Avg Revenue beat(16)-2.53%
PT rev (1m)-9.87%
PT rev (3m)-14.65%
EPS NQ rev (1m)-14.19%
EPS NQ rev (3m)-12.16%
EPS NY rev (1m)-3.09%
EPS NY rev (3m)-3.55%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.65%
Valuation
Industry RankSector Rank
PE 7.9
Fwd PE 7.59
P/S 1.03
P/FCF 13.6
P/OCF 3.75
P/B 2.05
P/tB N/A
EV/EBITDA 6.72
EPS(TTM)5.03
EY12.65%
EPS(NY)5.24
Fwd EY13.17%
FCF(TTM)2.92
FCFY7.35%
OCF(TTM)10.6
OCFY26.65%
SpS38.43
BVpS19.4
TBVpS-44.27
PEG (NY)1.93
PEG (5Y)1.97
Profitability
Industry RankSector Rank
ROA 2.43%
ROE 16.67%
ROCE 8.5%
ROIC 5.56%
ROICexc 5.64%
ROICexgc 12.85%
OM 24.27%
PM (TTM) 8.42%
GM 46.68%
FCFM 7.61%
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 Turnover0.29
Health
Industry RankSector Rank
Debt/Equity 4.17
Debt/FCF 30.4
Debt/EBITDA 4.48
Cap/Depr 87.9%
Cap/Sales 19.96%
Interest Coverage 2.4
Cash Conversion 58.68%
Profit Quality 90.37%
Current Ratio 0.66
Quick Ratio 0.61
Altman-Z N/A
F-Score7
WACC5.6%
ROIC/WACC0.99
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)10.07%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%22.69%
EPS Next Y4.1%
EPS Next 2Y4.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.01%
Revenue Next Year2.29%
Revenue Next 2Y2.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.13%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year96.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.18%
FCF growth 3Y5.91%
FCF growth 5Y-1.13%
OCF growth 1Y8.79%
OCF growth 3Y10.93%
OCF growth 5Y4.65%