ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
NYSE:RCI - New York Stock Exchange, Inc. - CA7751092007 - Common Stock - Currency: USD
RCI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
RCI had positive earnings in the past year.
RCI had a positive operating cash flow in the past year.
Each year in the past 5 years RCI has been profitable.
In the past 5 years RCI always reported a positive cash flow from operatings.
1.2 Ratios
RCI has a Return On Assets (2.40%) which is comparable to the rest of the industry.
RCI has a Return On Equity of 16.54%. This is amongst the best in the industry. RCI outperforms 85.71% of its industry peers.
RCI has a Return On Invested Capital (5.29%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years 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
With a decent Profit Margin value of 8.50%, RCI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
RCI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.30%, 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.
RCI has a Gross Margin of 46.70%. This is in the lower half of the industry: RCI underperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RCI is destroying value.
The number of shares outstanding for RCI has been increased compared to 1 year ago.
Compared to 5 years ago, RCI has more shares outstanding
The debt/assets ratio for RCI is higher compared to a year ago.
2.2 Solvency
RCI has an Altman-Z score of 0.96. This is a bad value and indicates that RCI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RCI (0.96) 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.
The Debt to FCF ratio of RCI (28.17) is worse than 71.43% of its industry peers.
A Debt/Equity ratio of 4.37 is on the high side and indicates that RCI has dependencies on debt financing.
With a Debt to Equity ratio value of 4.37, RCI is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | 28.17 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.91
WACC5.81%
2.3 Liquidity
RCI has a Current 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's Current ratio of 1.00 is on the low side compared to the rest of the industry. RCI is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.94 indicates that RCI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, RCI is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.94 |
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 6.71%.
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)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%2.42%
3.2 Future
The Earnings Per Share is expected to grow by 4.00% on average over the next years.
Based on estimates for the next years, RCI will show a small growth in Revenue. The Revenue will grow by 1.76% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 9.33, the valuation of RCI can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RCI indicates a rather cheap valuation: RCI is cheaper than 80.95% of the companies listed in the same industry.
RCI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.04.
With a Price/Forward Earnings ratio of 9.02, the valuation of RCI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RCI is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 37.64. RCI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCI.
RCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.41 | ||
| EV/EBITDA | 7.19 |
4.3 Compensation for Growth
The decent profitability rating of RCI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.32
EPS Next 2Y1.52%
EPS Next 3Y4%
5. Dividend
5.1 Amount
RCI has a Yearly Dividend Yield of 4.26%, which is a nice return.
RCI's Dividend Yield is comparable with the industry average which is at 5.71.
RCI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
41.75% of the earnings are spent on dividend by RCI. This is a bit on the high side, but may be sustainable.
DP41.75%
EPS Next 2Y1.52%
EPS Next 3Y4%
34.32
-0.14 (-0.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.32%
Inst Owner Change0.45%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap18.54B
Analysts76.67
Price Target38.89 (13.32%)
Short Float %3.3%
Short Ratio9.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.01
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)2.41%
PT rev (3m)0.72%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-9.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 9.02 | ||
| P/S | 1.22 | ||
| P/FCF | 14.41 | ||
| P/OCF | 4.36 | ||
| P/B | 2.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.19 |
EPS(TTM)3.68
EY10.72%
EPS(NY)3.81
Fwd EY11.09%
FCF(TTM)2.38
FCFY6.94%
OCF(TTM)7.88
OCFY22.96%
SpS28.11
BVpS14.45
TBVpS-31.78
PEG (NY)N/A
PEG (5Y)2.32
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 | 0.96 |
F-Score6
WACC5.81%
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)8.68%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-1.72%
EPS Next Y-1.2%
EPS Next 2Y1.52%
EPS Next 3Y4%
EPS Next 5YN/A
Revenue 1Y (TTM)6.71%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%2.42%
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%