ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
NYSE:RCI - New York Stock Exchange, Inc. - CA7751092007 - Common Stock - Currency: USD
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 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
RCI had positive earnings in the past year.
In the past year RCI had a positive cash flow from operations.
In the past 5 years RCI has always been profitable.
Each year in the past 5 years RCI had a positive operating cash flow.
1.2 Ratios
RCI has a Return On Assets (2.40%) which is in line with its industry peers.
With an excellent Return On Equity value of 16.54%, RCI belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
RCI has a Return On Invested Capital (5.29%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RCI is in line with the industry average of 6.27%.
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
RCI's Profit Margin of 8.50% is fine compared to the rest of the industry. RCI outperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of RCI has declined.
RCI's Operating Margin of 24.30% is amongst the best of the industry. RCI outperforms 90.48% 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 (46.70%) is worse than 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 | 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.
Compared to 1 year ago, RCI has more shares outstanding
RCI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RCI has a worse debt to assets ratio.
2.2 Solvency
RCI has an Altman-Z score of 0.90. 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 0.90 is on the low side compared to the rest of the industry. RCI is outperformed by 61.90% of its industry peers.
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.
Looking at the Debt to Equity ratio, with a value of 4.37, RCI is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.37 | ||
| Debt/FCF | 28.17 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.95
WACC5.56%
2.3 Liquidity
A Current Ratio of 1.00 indicates that RCI may have some problems paying its short term obligations.
With a Current ratio value of 1.00, RCI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.94 indicates that RCI may have some problems paying its short term obligations.
With a Quick ratio value of 0.94, RCI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| 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 11.71%, which is quite good.
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.
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)11.71%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-3.7%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y12.03%
Revenue growth 5Y6.45%
Sales Q2Q%-2.28%
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 4.00% on average per year.
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
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.
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
The Price/Earnings ratio is 7.23, which indicates a rather cheap valuation of RCI.
Based on the Price/Earnings ratio, RCI is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. RCI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.97, the valuation of RCI can be described as very cheap.
Based on the Price/Forward Earnings ratio, RCI is valued cheaper than 95.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RCI to the average of the S&P500 Index (21.94), we can say RCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCI.
The rest of the industry has a similar Price/Free Cash Flow ratio as RCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.1 | ||
| EV/EBITDA | 6.57 |
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)1.8
EPS Next 2Y1.52%
EPS Next 3Y4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.65%, RCI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.41, RCI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, RCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
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%
NYSE:RCI (5/22/2025, 12:13:06 PM)
26.025
+0.15 (+0.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.23%
Inst Owner Change1.88%
Ins Owners1.04%
Ins Owner ChangeN/A
Market Cap14.00B
Analysts76.67
Price Target37.72 (44.94%)
Short Float %1.31%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
Yearly Dividend0.99
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)-2.12%
Min EPS beat(2)-8.84%
Max EPS beat(2)4.6%
EPS beat(4)2
Avg EPS beat(4)-1.56%
Min EPS beat(4)-8.84%
Max EPS beat(4)4.6%
EPS beat(8)4
Avg EPS beat(8)-0.43%
EPS beat(12)6
Avg EPS beat(12)0.21%
EPS beat(16)7
Avg EPS beat(16)0.03%
Revenue beat(2)0
Avg Revenue beat(2)-4.02%
Min Revenue beat(2)-6.65%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-6.65%
Max Revenue beat(4)-1.4%
Revenue beat(8)1
Avg Revenue beat(8)-3.32%
Revenue beat(12)1
Avg Revenue beat(12)-3.1%
Revenue beat(16)1
Avg Revenue beat(16)-2.97%
PT rev (1m)-2.31%
PT rev (3m)-8.53%
EPS NQ rev (1m)-8.43%
EPS NQ rev (3m)-10.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.09%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 6.97 | ||
| P/S | 0.94 | ||
| P/FCF | 11.1 | ||
| P/OCF | 3.35 | ||
| P/B | 1.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.57 |
EPS(TTM)3.6
EY13.83%
EPS(NY)3.73
Fwd EY14.34%
FCF(TTM)2.34
FCFY9.01%
OCF(TTM)7.76
OCFY29.81%
SpS27.68
BVpS14.22
TBVpS-31.29
PEG (NY)N/A
PEG (5Y)1.8
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 | 0.9 |
F-Score6
WACC5.56%
ROIC/WACC0.95
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)11.71%
EPS 3Y12.64%
EPS 5Y4.02%
EPS Q2Q%-3.7%
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%-2.28%
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 Year91.99%
EBIT Next 3Y26.14%
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%