ROGERS COMMUNICATIONS INC-B (RCI)
CA7751092007 - Common Stock
We assign a fundamental rating of 4 out of 10 to RCI. RCI was compared to 22 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 correct valuation and a medium growth rate.
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.
RCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RCI has a Return On Assets (1.23%) which is in line with its industry peers.
With a Return On Equity value of 8.13%, RCI perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
RCI has a Return On Invested Capital (4.86%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RCI is below the industry average of 7.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 8.13% | ||
| ROIC | 4.86% |
ROA(3y)2.65%
ROA(5y)3.51%
ROE(3y)13.19%
ROE(5y)15.58%
ROIC(3y)5.47%
ROIC(5y)6.11%
1.3 Margins
RCI has a Profit Margin (4.40%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of RCI has declined.
RCI's Operating Margin of 23.10% is amongst the best of the industry. RCI outperforms 90.48% of its industry peers.
RCI's Operating Margin has declined in the last couple of years.
RCI has a Gross Margin of 44.44%. This is in the lower half of the industry: RCI underperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of RCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.1% | ||
| PM (TTM) | 4.4% | ||
| GM | 44.44% |
OM growth 3Y-0.25%
OM growth 5Y-1.56%
PM growth 3Y-27.29%
PM growth 5Y-20.26%
GM growth 3Y1.83%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RCI is still creating some value.
Compared to 1 year ago, RCI has more shares outstanding
RCI has more shares outstanding than it did 5 years ago.
RCI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that RCI is in the distress zone and has some risk of bankruptcy.
RCI has a Altman-Z score of 0.90. This is comparable to the rest of the industry: RCI outperforms 42.86% of its industry peers.
RCI has a debt to FCF ratio of 37.26. This is a negative value and a sign of low solvency as RCI would need 37.26 years to pay back of all of its debts.
The Debt to FCF ratio of RCI (37.26) is worse than 66.67% of its industry peers.
RCI has a Debt/Equity ratio of 4.18. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.18, 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 | 4.18 | ||
| Debt/FCF | 37.26 | ||
| Altman-Z | 0.9 |
ROIC/WACC1.02
WACC4.74%
2.3 Liquidity
A Current Ratio of 0.89 indicates that RCI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.89, RCI is doing worse than 71.43% of the companies in the same industry.
RCI has a Quick Ratio of 0.89. This is a bad value and indicates that RCI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.84, RCI is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
RCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.37%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.43% on average over the past years.
The Revenue has grown by 25.41% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 5.04% on average over the past years.
EPS 1Y (TTM)24.37%
EPS 3Y7.66%
EPS 5Y-0.43%
EPS growth Q2Q7.32%
Revenue 1Y (TTM)25.41%
Revenue growth 3Y11.53%
Revenue growth 5Y5.04%
Revenue growth Q2Q28.06%
3.2 Future
RCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.27% yearly.
Based on estimates for the next years, RCI will show a small growth in Revenue. The Revenue will grow by 4.31% on average per year.
EPS Next Y19.76%
EPS Next 2Y15.83%
EPS Next 3Y15.27%
EPS Next 5YN/A
Revenue Next Year6.67%
Revenue Next 2Y5.11%
Revenue Next 3Y4.31%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.42 indicates a reasonable valuation of RCI.
Compared to the rest of the industry, the Price/Earnings ratio of RCI indicates a somewhat cheap valuation: RCI is cheaper than 71.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RCI to the average of the S&P500 Index (28.11), we can say RCI is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.38, the valuation of RCI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RCI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, RCI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCI indicates a slightly more expensive valuation: RCI is more expensive than 71.43% of the companies listed in the same industry.
RCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.17 | ||
| EV/EBITDA | 7.5 |
4.3 Compensation for Growth
RCI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RCI's earnings are expected to grow with 15.27% in the coming years.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y15.83%
EPS Next 3Y15.27%
5. Dividend
5.1 Amount
RCI has a Yearly Dividend Yield of 3.86%.
RCI's Dividend Yield is comparable with the industry average which is at 6.14.
RCI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
The dividend of RCI decreases each year by -0.67%.
RCI has paid a dividend for at least 10 years, which is a reliable track record.
As RCI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-0.67%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
113.07% of the earnings are spent on dividend by RCI. This is not a sustainable payout ratio.
DP113.07%
EPS Next 2Y15.83%
EPS Next 3Y15.27%
ROGERS COMMUNICATIONS INC-B
NYSE:RCI (5/7/2024, 7:19:27 PM)
After market: 38.37 0 (0%)38.37
-0.38 (-0.98%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 8.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.1% | ||
| PM (TTM) | 4.4% | ||
| GM | 44.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)24.37%
EPS 3Y7.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y19.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.41%
Revenue growth 3Y11.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y