ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
USA - NYSE:RCI - CA7751092007 - Common Stock
38.37 USD
-0.01 (-0.03%)
38.37 USD
0 (0%)
RCI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. RCI has an excellent profitability rating, but there are concerns on its financial health. RCI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RCI was profitable.
In the past year RCI had a positive cash flow from operations.
RCI had positive earnings in each of the past 5 years.
In the past 5 years RCI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.53%, RCI belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
RCI has a better Return On Equity (39.83%) than 95.45% of its industry peers.
With a Return On Invested Capital value of 4.32%, RCI perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
RCI had an Average Return On Invested Capital over the past 3 years of 5.27%. This is in line with the industry average of 5.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 39.83% | ||
| ROIC | 4.32% |
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 32.11%, RCI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RCI has declined.
RCI has a better Operating Margin (23.36%) than 86.36% of its industry peers.
In the last couple of years the Operating Margin of RCI has remained more or less at the same level.
The Gross Margin of RCI (45.97%) is worse than 63.64% of its industry peers.
In the last couple of years the Gross Margin of RCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.36% | ||
| PM (TTM) | 32.11% | ||
| GM | 45.97% |
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 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RCI has more shares outstanding than it did 1 year ago.
RCI has more shares outstanding than it did 5 years ago.
RCI has a worse debt/assets ratio than last year.
2.2 Solvency
RCI has an Altman-Z score of 0.83. This is a bad value and indicates that RCI is not financially healthy and even has some risk of bankruptcy.
RCI's Altman-Z score of 0.83 is on the low side compared to the rest of the industry. RCI is outperformed by 63.64% of its industry peers.
The Debt to FCF ratio of RCI is 26.81, which is on the high side as it means it would take RCI, 26.81 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RCI (26.81) is worse than 68.18% of its industry peers.
RCI has a Debt/Equity ratio of 2.52. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.52, RCI is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 26.81 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.77
WACC5.58%
2.3 Liquidity
A Current Ratio of 0.62 indicates that RCI may have some problems paying its short term obligations.
RCI's Current ratio of 0.62 is on the low side compared to the rest of the industry. RCI is outperformed by 86.36% of its industry peers.
RCI has a Quick Ratio of 0.62. This is a bad value and indicates that RCI is not financially healthy enough and could expect problems in meeting its short term obligations.
RCI has a Quick ratio of 0.59. This is amonst the worse of the industry: RCI underperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.20% over the past year.
The Earnings Per Share has been growing slightly by 4.02% on average over the past years.
Looking at the last year, RCI shows a small growth in Revenue. The Revenue has grown by 2.75% in the last year.
The Revenue has been growing slightly by 6.45% on average over the past years.
EPS 1Y (TTM)4.2%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-3.52%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.27%
3.2 Future
Based on estimates for the next years, RCI will show a small growth in Earnings Per Share. The EPS will grow by 1.58% on average per year.
Based on estimates for the next years, RCI will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y-2.05%
EPS Next 2Y0.26%
EPS Next 3Y1.58%
EPS Next 5YN/A
Revenue Next Year4.66%
Revenue Next 2Y5.12%
Revenue Next 3Y3.59%
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
A Price/Earnings ratio of 10.84 indicates a reasonable valuation of RCI.
Based on the Price/Earnings ratio, RCI is valued cheaper than 81.82% of the companies in the same industry.
RCI is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.64 indicates a reasonable valuation of RCI.
72.73% of the companies in the same industry are more expensive than RCI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.59. RCI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 10.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCI is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as RCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.33 | ||
| EV/EBITDA | 7.07 |
4.3 Compensation for Growth
The decent profitability rating of RCI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.7
EPS Next 2Y0.26%
EPS Next 3Y1.58%
5. Dividend
5.1 Amount
RCI has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
RCI's Dividend Yield is comparable with the industry average which is at 8.27.
Compared to an average S&P500 Dividend Yield of 2.44, RCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
The dividend of RCI decreases each year by -7.00%.
RCI has been paying a dividend for at least 10 years, so it has a reliable track record.
RCI 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
12.21% of the earnings are spent on dividend by RCI. This is a low number and sustainable payout ratio.
DP12.21%
EPS Next 2Y0.26%
EPS Next 3Y1.58%
38.37
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.03%
Inst Owner Change1.25%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap20.73B
Revenue(TTM)21.02B
Net Income(TTM)6.75B
Analysts76.8
Price Target41.63 (8.5%)
Short Float %2.38%
Short Ratio8.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend0.99
Dividend Growth(5Y)-7%
DP12.21%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.79%
Min EPS beat(2)0.65%
Max EPS beat(2)4.93%
EPS beat(4)3
Avg EPS beat(4)1.3%
Min EPS beat(4)-4.97%
Max EPS beat(4)4.93%
EPS beat(8)5
Avg EPS beat(8)0.84%
EPS beat(12)8
Avg EPS beat(12)1.53%
EPS beat(16)9
Avg EPS beat(16)0.97%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-2.44%
Max Revenue beat(2)-2.16%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-3%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-2.82%
Revenue beat(12)1
Avg Revenue beat(12)-2.89%
Revenue beat(16)1
Avg Revenue beat(16)-2.67%
PT rev (1m)3.39%
PT rev (3m)2.67%
EPS NQ rev (1m)6.19%
EPS NQ rev (3m)6.62%
EPS NY rev (1m)1.56%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 10.64 | ||
| P/S | 1.38 | ||
| P/FCF | 17.33 | ||
| P/OCF | 5.24 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.07 |
EPS(TTM)3.54
EY9.23%
EPS(NY)3.61
Fwd EY9.4%
FCF(TTM)2.21
FCFY5.77%
OCF(TTM)7.32
OCFY19.07%
SpS27.75
BVpS22.37
TBVpS-42.47
PEG (NY)N/A
PEG (5Y)2.7
Graham Number42.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 39.83% | ||
| ROCE | 6.59% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.4% | ||
| ROICexgc | 12.27% | ||
| OM | 23.36% | ||
| PM (TTM) | 32.11% | ||
| GM | 45.97% | ||
| FCFM | 7.98% |
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%
ROICexgc growth 3Y1.64%
ROICexgc 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-Score4
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 26.81 | ||
| Debt/EBITDA | 4.39 | ||
| Cap/Depr | 80.02% | ||
| Cap/Sales | 18.39% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 56.9% | ||
| Profit Quality | 24.85% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.83 |
F-Score4
WACC5.58%
ROIC/WACC0.77
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)4.2%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-3.52%
EPS Next Y-2.05%
EPS Next 2Y0.26%
EPS Next 3Y1.58%
EPS Next 5YN/A
Revenue 1Y (TTM)2.75%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%4.27%
Revenue Next Year4.66%
Revenue Next 2Y5.12%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
EBIT growth 1Y2.31%
EBIT growth 3Y14.85%
EBIT growth 5Y6.07%
EBIT Next Year91.1%
EBIT Next 3Y26.04%
EBIT Next 5YN/A
FCF growth 1Y44.82%
FCF growth 3Y5.91%
FCF growth 5Y-1.13%
OCF growth 1Y11.13%
OCF growth 3Y10.93%
OCF growth 5Y4.65%
ROGERS COMMUNICATIONS INC-B / RCI FAQ
What is the fundamental rating for RCI stock?
ChartMill assigns a fundamental rating of 4 / 10 to RCI.
Can you provide the valuation status for ROGERS COMMUNICATIONS INC-B?
ChartMill assigns a valuation rating of 5 / 10 to ROGERS COMMUNICATIONS INC-B (RCI). This can be considered as Fairly Valued.
What is the profitability of RCI stock?
ROGERS COMMUNICATIONS INC-B (RCI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ROGERS COMMUNICATIONS INC-B (RCI) stock?
The Price/Earnings (PE) ratio for ROGERS COMMUNICATIONS INC-B (RCI) is 10.84 and the Price/Book (PB) ratio is 1.72.
How sustainable is the dividend of ROGERS COMMUNICATIONS INC-B (RCI) stock?
The dividend rating of ROGERS COMMUNICATIONS INC-B (RCI) is 6 / 10 and the dividend payout ratio is 12.21%.