ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
NYSE:RCI - New York Stock Exchange, Inc. - CA7751092007 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to RCI. RCI was compared to 21 industry peers in the Wireless Telecommunication Services industry. While RCI is still in line with the averages on profitability rating, there are concerns on its financial health. RCI is not valued too expensively and it also shows a decent growth rate. RCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RCI was profitable.
RCI had a positive operating cash flow in the past year.
In the past 5 years RCI has always been profitable.
RCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RCI has a Return On Assets (2.40%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 16.54%, RCI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of RCI (5.29%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RCI is in line with the industry average of 6.34%.
The 3 year average ROIC (5.27%) for RCI 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
Looking at the Profit Margin, with a value of 8.50%, RCI is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
RCI's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 24.30%, RCI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
RCI's Operating Margin has been stable in the last couple of years.
RCI's Gross Margin of 46.70% is on the low side compared to the rest of the industry. RCI is outperformed by 66.67% of its industry peers.
RCI's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RCI is destroying value.
RCI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RCI has more shares outstanding
Compared to 1 year ago, RCI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.94, we must say that RCI is in the distress zone and has some risk of bankruptcy.
RCI has a Altman-Z score (0.94) which is comparable to the rest of the industry.
RCI has a debt to FCF ratio of 28.17. This is a negative value and a sign of low solvency as RCI would need 28.17 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 28.17, RCI is doing worse than 71.43% of the companies in the same industry.
RCI has a Debt/Equity ratio of 4.37. This is a high value indicating a heavy dependency on external financing.
RCI's Debt to Equity ratio of 4.37 is on the low side compared to the rest of the industry. RCI is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | 28.17 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.91
WACC5.78%
2.3 Liquidity
A Current Ratio of 1.00 indicates that RCI may have some problems paying its short term obligations.
The Current ratio of RCI (1.00) is worse than 66.67% of its industry peers.
RCI has a Quick Ratio of 1.00. 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 worse Quick ratio (0.94) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
RCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.53%, 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 1.50% in the past 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 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.00% yearly.
The Revenue is expected to grow by 1.76% on average over the next years.
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
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.
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
RCI is valuated reasonably with a Price/Earnings ratio of 8.69.
Based on the Price/Earnings ratio, RCI is valued cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, RCI is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.44, the valuation of RCI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCI indicates a rather cheap valuation: RCI is cheaper than 85.71% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RCI to the average of the S&P500 Index (21.76), we can say RCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 8.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.44 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
The decent profitability rating of RCI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.16
EPS Next 2Y1.52%
EPS Next 3Y4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.00%, RCI is a good candidate for dividend investing.
RCI's Dividend Yield is a higher than the industry average which is at 5.00.
RCI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
5.2 History
The dividend of RCI decreases each year by -7.00%.
RCI has paid a dividend for at least 10 years, which is 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
RCI pays out 41.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.75%
EPS Next 2Y1.52%
EPS Next 3Y4%
32.07
+0.21 (+0.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.32%
Inst Owner Change1.87%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap17.25B
Analysts76.67
Price Target38.18 (19.05%)
Short Float %2.24%
Short Ratio7.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
Yearly Dividend1.02
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)-2.8%
Revenue beat(16)1
Avg Revenue beat(16)-2.74%
PT rev (1m)1.22%
PT rev (3m)-1.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 8.44 | ||
| P/S | 1.14 | ||
| P/FCF | 13.44 | ||
| P/OCF | 4.06 | ||
| P/B | 2.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.99 |
EPS(TTM)3.69
EY11.51%
EPS(NY)3.8
Fwd EY11.85%
FCF(TTM)2.39
FCFY7.44%
OCF(TTM)7.89
OCFY24.62%
SpS28.16
BVpS14.48
TBVpS-31.84
PEG (NY)N/A
PEG (5Y)2.16
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 | 0.94 |
F-Score6
WACC5.78%
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%