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Rogers Comm Cl A
(TSX:RCI.A)
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Rating:69Neutral
Price Target:
C$58.00
â–²(11.15% Upside)
Action:Downgraded
Date:07/23/26
The score is supported by very attractive valuation (low P/E and ~4.17% yield) and a constructive earnings-call tone focused on improving free cash flow and lower capital intensity. These positives are tempered by balance-sheet leverage and weaker cash-to-earnings conversion, while technicals remain weak with the stock trading below key moving averages and negative MACD.
Positive Factors
Recurring revenue growth
Growth in recurring service revenue shows continued demand for Rogers' wireless, connectivity, and communications offerings. Combined with EBITDA growth, the trend supports operating scale and provides a durable base for reinvestment, debt reduction, and sustained cash generation.
Negative Factors
Elevated leverage
Rogers remains meaningfully debt-heavy despite improvement from prior years. High leverage can absorb a substantial portion of future cash flow through financing obligations, reduce flexibility for network or media investment, and increase execution pressure around planned asset monetization.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue growth
Growth in recurring service revenue shows continued demand for Rogers' wireless, connectivity, and communications offerings. Combined with EBITDA growth, the trend supports operating scale and provides a durable base for reinvestment, debt reduction, and sustained cash generation.
Read all positive factors
Rogers Comm Cl A (RCI.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$27.15B
Dividend Yield3.96%
Average Volume (3M)1.14K
Price to Earnings (P/E)4.3
Beta (1Y)0.17
Revenue Growth8.73%
EPS Growth302.65%
CountryCA
Employees25,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)11.55
Shares Outstanding111,148,720
10 Day Avg. Volume960
30 Day Avg. Volume1,136
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.15
Price to Sales (P/S)1.28
P/FCF Ratio11.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.75
Revenue Forecast (FY)C$22.56B
Rogers Comm Cl A Business Overview & Revenue Model
Company Description
Rogers Communications Inc. functions as a prominent telecommunications and media conglomerate across North America. Its diverse operations are segmented into Wireless, Cable, and Media divisions. Within its Wireless division, Rogers offers a compr...
How the Company Makes Money
Rogers makes money primarily by selling subscription-based connectivity and communications services and related fees across its core lines of business. The largest revenue driver is wireless: customers pay recurring monthly service charges for mob...
Rogers Comm Cl A Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: strong revenue growth (+8%), solid free cash flow (CAD 1.0B, +6%), marked capital efficiency improvements (CapEx down 16%; capital intensity down 350 bps) and outstanding sports & media performance (media revenue +53%, organic +13%, adjusted EBITDA ~8.5x). Notable challenges remain — a competitive, low‑growth wireless market with ARPU and mobile-net pressures, regulatory impacts on activation fees, a CAD 1.0B non‑cash accounting loss tied to the MLSE transaction, and execution/timing risks around league approvals and minority monetization. On balance, positives (operational execution, cash generation, liquidity, and strategic sports/media upside) outweigh the near‑term risks and one‑time accounting charge, supporting a favorable outlook provided management executes on monetization and mitigations.Positive Updates
Consolidated Financial Growth
Total service revenue rose 8% to CAD 5.1 billion and consolidated adjusted EBITDA increased 3% to CAD 2.4 billion. Consolidated free cash flow was CAD 1.0 billion, up 6% year‑over‑year.
Negative Updates
Wireless Subscriber Mix and ARPU Pressure
Mobile phone net additions were down 34% YoY and mobile phone ARPU declined 2% to CAD 54.25, reflecting a low‑growth, competitive wireless market and continued pressure on network revenue growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Financial Growth
Total service revenue rose 8% to CAD 5.1 billion and consolidated adjusted EBITDA increased 3% to CAD 2.4 billion. Consolidated free cash flow was CAD 1.0 billion, up 6% year‑over‑year.
Read all positive updates
Company Guidance
The company reaffirmed its 2026 outlook while highlighting Q2 progress that supports accelerating free cash flow and lower capital intensity: Q2 free cash flow ~CAD1.0B (+6% YoY) on Q2 CapEx CAD0.7B (‑16%), driving consolidated capital intensity to roughly 12–12.4% (improved ~350 bps, lowest since Q1 2008) and underpinning full‑year CapEx guidance of CAD2.5–2.7B; consolidated service revenue was CAD5.1B (+8% YoY) and adjusted EBITDA CAD2.4B (+3% YoY), liquidity exceeded CAD6B (CAD1.7B cash + CAD4.4B available facilities) with leverage 3.8x (down from 4.0x). Operational highlights: 57k combined mobile phone + retail internet net adds (40k wireless, 22k postpaid), mobile ARPU CAD54.25 (‑2%), postpaid churn 0.94% (‑6 bps), cable internet adds 17k and cable margin 58% (+10 bps), and media revenue ~CAD1.2B (+53%) including Rogers Sports & Media organic +13% with media adjusted EBITDA CAD69M (~8.5x). Management expects further CapEx reductions and accelerating FCF in H2, plans to close the remaining 25% MLSE purchase in Q4 and pursue a minority monetization of the combined sports/media assets (targeting H1 2027) to delever.Rogers Comm Cl A Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.62B | 21.71B | 20.60B | 19.31B | 15.40B | 14.65B |
| Gross Profit | 6.37B | 5.02B | 9.62B | 8.58B | 6.39B | 5.89B |
| EBITDA | 14.27B | 14.74B | 9.21B | 8.22B | 6.12B | 5.63B |
| Net Income | 6.21B | 6.89B | 1.73B | 849.00M | 1.68B | 1.56B |
Balance Sheet | ||||||
| Total Assets | 90.30B | 90.01B | 71.41B | 69.28B | 55.66B | 41.96B |
| Cash, Cash Equivalents and Short-Term Investments | 1.73B | 1.34B | 898.00M | 800.00M | 13.30B | 715.00M |
| Total Debt | 45.70B | 46.60B | 47.63B | 45.20B | 36.75B | 22.84B |
| Total Liabilities | 67.45B | 65.73B | 61.01B | 58.84B | 45.56B | 31.43B |
| Stockholders Equity | 16.56B | 24.29B | 10.40B | 10.44B | 10.09B | 10.53B |
Cash Flow | ||||||
| Free Cash Flow | 2.69B | 2.35B | 1.59B | 1.29B | 1.42B | 1.37B |
| Operating Cash Flow | 5.82B | 6.06B | 5.63B | 5.22B | 4.49B | 4.16B |
| Investing Cash Flow | -6.91B | -8.21B | -4.46B | -20.20B | -3.26B | -6.13B |
| Financing Cash Flow | -2.62B | 2.60B | -1.08B | 2.48B | 11.36B | 203.00M |
Rogers Comm Cl A Technical Analysis
Positive
52.18
Price Trends
49.51
Positive
50.20
Positive
50.40
Positive
Market Momentum
0.45
Positive
48.50
Neutral
12.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCI.A, the sentiment is Positive. The current price of 52.18 is above the 20-day moving average (MA) of 51.09, above the 50-day MA of 49.51, and above the 200-day MA of 50.40, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 12.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RCI.A.
Rogers Comm Cl A Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$14.09B | 15.06 | 35.86% | 2.55% | 3.12% | 24.49% | |
69 Neutral | C$27.15B | 4.34 | 32.78% | 3.96% | 8.73% | 302.65% | |
65 Neutral | C$27.15B | 4.34 | 32.78% | 3.99% | 8.73% | 302.65% | |
64 Neutral | C$30.20B | 4.80 | 27.73% | 5.40% | 1.59% | 1374.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | C$2.42B | -2.16 | -38.76% | 6.91% | -4.86% | -440.35% | |
46 Neutral | C$20.02B | -21.99 | -6.56% | 11.45% | -1.06% | -188.85% |
* Communication Services Sector Average
TSE:RCI.A
Rogers Comm Cl A
51.14
2.49
5.11%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.