ROGERS COMMUNICATIONS INC-B (RCI) Stock Fundamental Analysis
USA - NYSE:RCI - CA7751092007 - Common Stock
35.08 USD
+0.44 (+1.27%)
35.08 USD
0 (0%)
Taking everything into account, RCI scores 4 out of 10 in our fundamental rating. 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RCI was profitable.
RCI had a positive operating cash flow in the past year.
Each year in the past 5 years RCI has 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 (1.97%) which is in line with its industry peers.
RCI has a better Return On Equity (13.56%) than 72.73% of its industry peers.
RCI's Return On Invested Capital of 4.88% is in line compared to the rest of the industry. RCI outperforms 59.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCI is in line with the industry average of 5.96%.
| 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 68.18% of its industry peers.
RCI's Profit Margin has declined in the last couple of years.
The Operating Margin of RCI (24.10%) is better than 86.36% of its industry peers.
RCI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 46.60%, RCI is doing worse than 63.64% of the companies in the same industry.
RCI's Gross Margin has improved in the last couple of years.
| 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
RCI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RCI has more shares outstanding than it did 1 year ago.
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 1.00. This is a bad value and indicates that RCI is not financially healthy and even has some risk of bankruptcy.
RCI has a Altman-Z score of 1.00. This is comparable to the rest of the industry: RCI outperforms 45.45% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 22.37, RCI is doing worse than 68.18% of the companies in the same industry.
A Debt/Equity ratio of 3.91 is on the high side and indicates that RCI has dependencies on debt financing.
RCI has a Debt to Equity ratio of 3.91. This is in the lower half of the industry: RCI underperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.91 | ||
| Debt/FCF | 22.37 | ||
| Altman-Z | 1 |
ROIC/WACC0.8
WACC6.12%
2.3 Liquidity
RCI has a Current Ratio of 1.70. 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 Current ratio value of 1.70, RCI is doing good in the industry, outperforming 72.73% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that RCI should not have too much problems paying its short term obligations.
RCI has a Quick ratio of 1.64. This is in the better half of the industry: RCI outperforms 72.73% of its industry peers.
| 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.
RCI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.02% yearly.
The Revenue has been growing slightly by 1.87% in the past year.
RCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.45% yearly.
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
Based on estimates for the next years, RCI will show a small growth in Earnings Per Share. The EPS will grow by 1.05% on average per year.
RCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y-3.56%
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
EPS Next 5YN/A
Revenue Next Year4.29%
Revenue Next 2Y4.95%
Revenue Next 3Y3.4%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 9.72, which indicates a very decent valuation of RCI.
Based on the Price/Earnings ratio, RCI is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.06, RCI is valued rather cheaply.
RCI is valuated reasonably with a Price/Forward Earnings ratio of 9.71.
Based on the Price/Forward Earnings ratio, RCI is valued cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RCI to the average of the S&P500 Index (22.64), we can say RCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 9.71 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.95 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
The decent profitability rating of RCI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.42
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.12%, RCI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.48, RCI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, RCI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
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 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
48.65% of the earnings are spent on dividend by RCI. This is a bit on the high side, but may be sustainable.
DP48.65%
EPS Next 2Y-0.19%
EPS Next 3Y1.05%
35.08
+0.44 (+1.27%)
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 Cap18.95B
Analysts76.8
Price Target40.35 (15.02%)
Short Float %2.17%
Short Ratio6.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend1
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)-0.49%
PT rev (3m)5.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.31%
EPS NY rev (1m)0%
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)2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 9.71 | ||
| P/S | 1.26 | ||
| P/FCF | 12.95 | ||
| P/OCF | 4.44 | ||
| P/B | 2.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.43 |
EPS(TTM)3.61
EY10.29%
EPS(NY)3.61
Fwd EY10.3%
FCF(TTM)2.71
FCFY7.72%
OCF(TTM)7.9
OCFY22.53%
SpS27.77
BVpS14.98
TBVpS-30.22
PEG (NY)N/A
PEG (5Y)2.42
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 |
F-Score7
WACC6.12%
ROIC/WACC0.8
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 Year4.29%
Revenue Next 2Y4.95%
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%