Rogers Communication (RCI.B) AI Stock Analysis

• Market Cap: $29.77B
• Dividend Yield: 3.64%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.57
• Revenue Growth: 2.75%
• EPS Growth: 342.54%
• Country: CA
• Employees: 24,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.37
• Shares Outstanding: 429,073,270
• 10 Day Avg. Volume: 2,387,119
• 30 Day Avg. Volume: 2,041,085
• PEG Ratio: 0.14
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 15.65
• Enterprise Value/Market Cap: 2.56
• Enterprise Value/Revenue: 3.66
• Enterprise Value/Gross Profit: 7.85
• Enterprise Value/Ebitda: 8.19
• 1Y Price Target: $56.97
• Price Target Upside: 3.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: C$58.00 ▲(5.67% Upside)

Rogers Communication's strong technical indicators and solid financial performance drive the score. The stock shows positive momentum, and while the valuation is moderate, the dividend yield adds appeal. High leverage remains a risk.

Positive Factors

Strong Mobile Subscriber Growth

The significant increase in mobile subscribers indicates strong demand for Rogers' services and suggests a growing customer base, which is crucial for long-term revenue growth and market share expansion.

Industry-Leading Margins

High margins in wireless and cable segments demonstrate effective cost management and strategic investments, ensuring sustainable profitability and competitive advantage in the telecommunications industry.

Media Revenue Growth

The robust growth in media revenue highlights the success of Rogers' diversified business model and strengthens its position in the media sector, contributing to overall financial health.

Negative Factors

Flat Wireless Service Revenue

Stagnant wireless service revenue suggests challenges in maintaining growth in a competitive market, potentially impacting future revenue streams and necessitating strategic adjustments.

Decline in Mobile ARPU

A decline in ARPU indicates pricing pressure and reduced profitability per user, which could affect overall revenue and necessitate new strategies to enhance customer value.

Increased Debt Leverage

Higher debt levels following acquisitions increase financial risk and may limit future investment capacity, impacting long-term financial stability and flexibility.

Rogers Communication Business Overview & Revenue Model

Company Description

Rogers Communications Inc. (RCI.B) is a leading Canadian telecommunications and media company headquartered in Toronto, Ontario. The company operates in various sectors, including wireless communications, cable television, internet, and media. Its core products and services encompass mobile voice and data services, high-speed internet, television services, and content through its media division, which includes broadcasting, digital media, and publishing.

How the Company Makes Money

Rogers Communications generates revenue primarily through its wireless segment, which includes the sale of mobile voice and data services to consumers and businesses. This segment is complemented by its cable services, which provide internet, television, and home phone services. Additional revenue streams come from the media sector, which includes advertising revenue from its television and radio stations, as well as subscription fees from various digital platforms. Significant partnerships, such as those with content providers, enhance its media offerings and contribute to earnings. The company also benefits from infrastructure investments, leading to improved service quality and customer retention, further boosting revenue.

Rogers Communication Financial Statement Overview

Summary

Rogers Communication demonstrates strong revenue growth and solid operational margins. However, high leverage poses a financial risk, and there is room for improvement in cash flow conversion. The company is well-positioned in the telecommunications industry but should focus on reducing debt levels to enhance financial stability.

Income Statement

Rogers Communication shows a strong revenue growth trajectory, with a notable increase in revenue over the TTM period. The gross profit margin remains stable, indicating efficient cost management. However, the net profit margin has decreased slightly, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting solid operational performance.

Balance Sheet

The company has a high debt-to-equity ratio, which indicates significant leverage and potential financial risk. However, the return on equity is reasonable, showing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing assets.

Cash Flow

Rogers Communication demonstrates positive free cash flow growth, which is a strong indicator of financial health. The operating cash flow to net income ratio is robust, indicating good cash generation relative to reported earnings. However, the free cash flow to net income ratio suggests room for improvement in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.80B	20.60B	19.31B	15.40B	14.65B	13.92B
Gross Profit	9.69B	9.62B	8.58B	6.39B	5.89B	5.77B
EBITDA	9.29B	9.21B	8.22B	6.12B	5.63B	5.54B
Net Income	1.52B	1.73B	849.00M	1.68B	1.56B	1.59B
Balance Sheet
Total Assets	77.19B	71.41B	69.28B	55.66B	41.96B	38.85B
Cash, Cash Equivalents and Short-Term Investments	6.96B	898.00M	800.00M	13.30B	715.00M	2.48B
Total Debt	45.41B	47.63B	45.20B	36.75B	22.84B	21.26B
Total Liabilities	59.32B	61.01B	58.84B	45.56B	31.43B	29.28B
Stockholders Equity	11.22B	10.40B	10.44B	10.09B	10.53B	9.57B
Cash Flow
Free Cash Flow	2.03B	1.59B	1.29B	1.42B	1.37B	2.01B
Operating Cash Flow	5.82B	5.63B	5.22B	4.49B	4.16B	4.32B
Investing Cash Flow	-3.86B	-4.46B	-20.20B	-3.26B	-6.13B	-2.56B
Financing Cash Flow	4.55B	-1.08B	2.48B	11.36B	203.00M	227.00M

Rogers Communication Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCI.B, the sentiment is Positive. The current price of 54.89 is above the 20-day moving average (MA) of 52.42, above the 50-day MA of 50.32, and above the 200-day MA of 41.89, indicating a bullish trend. The MACD of 1.63 indicates Negative momentum. The RSI at 69.59 is Neutral, neither overbought nor oversold. The STOCH value of 80.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RCI.B.

Rogers Communication Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCI.B	―	$29.77B	4.39	47.62%	3.64%	2.75%	342.54%
QBR.B	―	$10.15B	13.30	33.80%	3.07%	-1.02%	4.71%
QBR.A	―	C$9.90B	13.10	34.50%	3.00%	-1.02%	4.71%
T	―	$31.48B	31.93	6.08%	7.99%	2.56%	21.28%
CCA	―	$2.79B	8.57	10.26%	5.78%	-2.22%	-2.36%
BCE	―	$29.90B	70.31	2.91%	8.95%	-0.66%	-78.79%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Rogers Communication Corporate Events

Rogers Communications Reports Strong Q3 2025 Results

Rogers Communications Inc., a leading Canadian telecommunications company, operates in the wireless, cable, and media sectors, providing a diverse range of services and products to consumers and businesses across Canada.

Rogers Communications Shines in Earnings Call Amid Challenges

Rogers Communications’ recent earnings call painted a picture of robust operational performance, underscored by substantial mobile subscriber growth and impressive media revenue increases. Despite these achievements, the company faces challenges with stagnant wireless service revenue and a decline in average revenue per user (ARPU), coupled with increased debt leverage. However, innovations in satellite to mobile technology and an optimistic free cash flow outlook suggest promising avenues for future growth.