ROGERS COMMUNICATIONS INC-B (RCI-B.CA) Stock Fundamental Analysis
Canada - TSX:RCI-B - CA7751092007 - Common Stock
48.47 CAD
-0.64 (-1.3%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RCI-B is cheap, but on the other hand it scores bad on growth. These ratings could make RCI-B a good candidate 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.
In the past 5 years RCI-B always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.97%, RCI-B belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
RCI-B's Return On Equity of 13.56% is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
RCI-B has a better Return On Invested Capital (4.88%) than 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 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
RCI-B's Profit Margin of 7.31% is amongst the best of the industry. RCI-B outperforms 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 24.10% is amongst the best of the industry. RCI-B outperforms 100.00% of its industry peers.
RCI-B's Operating Margin has been stable in the last couple of years.
RCI-B has a Gross Margin of 46.60%. This is amongst the best in the industry. RCI-B outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RCI-B 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
Compared to 1 year ago, RCI-B has a worse debt to assets ratio.
2.2 Solvency
RCI-B has an Altman-Z score of 1.00. This is a bad value and indicates that RCI-B is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.00, RCI-B is in line with its industry, outperforming 50.00% of the companies in the same industry.
RCI-B has a debt to FCF ratio of 22.37. This is a negative value and a sign of low solvency as RCI-B would need 22.37 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 22.37, RCI-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 3.91 is on the high side and indicates that RCI-B has dependencies on debt financing.
With an excellent Debt to Equity ratio value of 3.91, RCI-B belongs to the best 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 |
ROIC/WACC0.73
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.70 indicates that RCI-B should not have too much problems paying its short term obligations.
RCI-B has a better Current ratio (1.70) than 100.00% of its industry peers.
A Quick Ratio of 1.64 indicates that RCI-B should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.64, RCI-B belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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.
Looking at the last year, RCI-B shows a small growth in Revenue. The Revenue has grown by 1.87% in the last year.
The Revenue has been growing slightly by 6.45% on average over the past years.
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 1.10% on average per year.
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
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.
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 9.67.
100.00% of the companies in the same industry are more expensive than RCI-B, based on the Price/Earnings ratio.
RCI-B's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 9.67, which indicates a very decent valuation of RCI-B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCI-B indicates a rather cheap valuation: RCI-B is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. RCI-B is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 9.67 |
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 | 12.9 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
The excellent profitability rating of RCI-B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.41
EPS Next 2Y-0.19%
EPS Next 3Y1.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.07%, RCI-B is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.07, RCI-B has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, RCI-B pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
5.2 History
The dividend of RCI-B decreases each year by -7.00%.
RCI-B has paid a dividend for at least 10 years, which is 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 3Y1.1%
TSX:RCI-B (10/3/2025, 7:00:00 PM)
48.47
-0.64 (-1.3%)
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 Cap26.18B
Analysts76.8
Price Target56.12 (15.78%)
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)0.95%
PT rev (3m)7.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.21%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 9.67 | ||
| P/S | 1.26 | ||
| P/FCF | 12.9 | ||
| P/OCF | 4.42 | ||
| P/B | 2.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.45 |
EPS(TTM)5.01
EY10.34%
EPS(NY)5.01
Fwd EY10.34%
FCF(TTM)3.76
FCFY7.75%
OCF(TTM)10.96
OCFY22.61%
SpS38.51
BVpS20.77
TBVpS-41.91
PEG (NY)N/A
PEG (5Y)2.41
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 |
F-Score7
WACC6.68%
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%