ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
NYSE:RCI - CA7751092007 - Common Stock
35.59 USD
-0.1 (-0.28%)
35.59 USD
0 (0%)
Taking everything into account, RCI scores 4 out of 10 in our fundamental rating. RCI was compared to 21 industry peers in the Wireless Telecommunication Services industry. There are concerns on the financial health of RCI while its profitability can be described as average. RCI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RCI had positive earnings in the past year.
In the past year RCI had a positive cash flow from operations.
Each year in the past 5 years RCI has 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 of 1.97%. This is comparable to the rest of the industry: RCI outperforms 52.38% of its industry peers.
The Return On Equity of RCI (13.56%) is better than 71.43% of its industry peers.
The Return On Invested Capital of RCI (4.88%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RCI is in line with the industry average of 6.09%.
| 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
The Profit Margin of RCI (7.31%) is better than 66.67% of its industry peers.
RCI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.10%, RCI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of RCI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 46.60%, RCI is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of RCI has grown nicely.
| 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 is destroying value.
The number of shares outstanding for RCI has been increased compared to 1 year ago.
The number of shares outstanding for RCI has been increased compared to 5 years ago.
RCI has a worse debt/assets ratio than last year.
2.2 Solvency
RCI has an Altman-Z score of 1.01. This is a bad value and indicates that RCI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.01, RCI is in line with its industry, outperforming 47.62% of the companies in the same industry.
RCI has a debt to FCF ratio of 22.37. This is a negative value and a sign of low solvency as RCI would need 22.37 years to pay back of all of its debts.
RCI has a Debt to FCF ratio of 22.37. This is in the lower half of the industry: RCI underperforms 66.67% of its industry peers.
RCI has a Debt/Equity ratio of 3.91. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.91, RCI is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.91 | ||
| Debt/FCF | 22.37 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.82
WACC5.93%
2.3 Liquidity
A Current Ratio of 1.70 indicates that RCI should not have too much problems paying its short term obligations.
RCI has a Current ratio of 1.70. This is in the better half of the industry: RCI outperforms 66.67% of its industry peers.
RCI has a Quick Ratio of 1.64. This is a normal value and indicates that RCI is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.64, RCI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.68% over the past year.
Measured over the past 5 years, RCI shows a small growth in Earnings Per Share. The EPS has been growing by 4.02% on average per year.
RCI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.87%.
Measured over the past years, RCI shows a small growth in Revenue. The Revenue has been growing by 6.45% on average per year.
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
The Earnings Per Share is expected to grow by 1.05% on average over the next years.
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
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
With a Price/Earnings ratio of 9.80, the valuation of RCI can be described as very reasonable.
Based on the Price/Earnings ratio, RCI is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. RCI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.81, the valuation of RCI can be described as very reasonable.
RCI's Price/Forward Earnings ratio is rather cheap when compared to the industry. RCI is cheaper than 80.95% of the companies in the same industry.
RCI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
RCI's Enterprise Value to EBITDA ratio is in line with the industry average.
RCI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.09 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
RCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.44
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
5. Dividend
5.1 Amount
RCI has a Yearly Dividend Yield of 4.07%, which is a nice return.
RCI's Dividend Yield is comparable with the industry average which is at 8.15.
Compared to an average S&P500 Dividend Yield of 2.32, RCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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 48.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP48.65%
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
35.59
-0.1 (-0.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.32%
Inst Owner Change2.5%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap19.23B
Analysts76.8
Price Target40.06 (12.56%)
Short Float %1.87%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend1.01
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)-2.89%
Revenue beat(16)1
Avg Revenue beat(16)-2.73%
PT rev (1m)3%
PT rev (3m)6.2%
EPS NQ rev (1m)-0.52%
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 | 9.8 | ||
| Fwd PE | 9.81 | ||
| P/S | 1.28 | ||
| P/FCF | 13.09 | ||
| P/OCF | 4.49 | ||
| P/B | 2.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.49 |
EPS(TTM)3.63
EY10.2%
EPS(NY)3.63
Fwd EY10.19%
FCF(TTM)2.72
FCFY7.64%
OCF(TTM)7.93
OCFY22.28%
SpS27.87
BVpS15.03
TBVpS-30.33
PEG (NY)N/A
PEG (5Y)2.44
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
WACC5.93%
ROIC/WACC0.82
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%