Rogers Communication (RCI.B) AI Stock Analysis

• Market Cap: $26.94B
• Dividend Yield: 4.02%
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.69
• Revenue Growth: 1.87%
• EPS Growth: 71.51%
• Country: CA
• Employees: 24,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.14
• Shares Outstanding: 429,073,270
• 10 Day Avg. Volume: 1,967,369
• 30 Day Avg. Volume: 1,701,122
• 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: 2.48
• Enterprise Value/Revenue: 3.22
• Enterprise Value/Gross Profit: 6.91
• Enterprise Value/Ebitda: 7.21
• 1Y Price Target: $54.28
• Price Target Upside: 9.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 71 Outperform
• Price Target: C$54.00 ▲(8.65% Upside)

Rogers Communication's overall score reflects strong financial performance and strategic initiatives, particularly in 5G and media expansion. The company's successful deleveraging and attractive dividend yield are positive factors. However, high leverage and regulatory risks, along with challenges in subscriber growth, temper the outlook.

Positive Factors

Media Segment Growth

The significant growth in media revenue highlights Rogers' ability to capitalize on popular sports events, strengthening its media segment and diversifying its revenue base.

Debt Reduction

Achieving debt reduction targets ahead of schedule improves Rogers' financial stability and flexibility, positioning it better for future investments and growth.

5G Network Expansion

The expansion of 5G technology enhances Rogers' competitive position in the telecommunications industry, offering faster and more reliable services to customers.

Negative Factors

Subscriber Growth Slowdown

A slowdown in subscriber growth indicates potential challenges in market expansion and customer acquisition, which could impact long-term revenue growth.

ARPU Decline

A decline in ARPU suggests pricing pressure and competitive challenges, potentially affecting profitability and revenue per user in the long term.

CRTC Decision Impact

Regulatory decisions affecting capital programs may hinder Rogers' ability to expand and upgrade its network, impacting future growth and operational efficiency.

Rogers Communication Business Overview & Revenue Model

Company Description

Rogers Communications Inc. operates as a communications and media company in Canada. It operates through three segments: Wireless, Cable, and Media. The company offers mobile Internet access, wireless voice and enhanced voice, device and accessory financing, wireless home phone, device protection, e-mail, global voice and data roaming, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device delivery services; and postpaid and prepaid services under the Rogers, Fido, and chatr brands to approximately 11.3 million subscribers. It also provides Internet and WiFi services; smart home monitoring services, such as monitoring, security, automation, energy efficiency, and smart control through a smartphone app. In addition, the company offers local and network TV; on-demand television; cloud-based digital video recorders; voice-activated remote controls, and integrated apps; personal video recorders; linear and time-shifted programming; digital specialty channels; 4K television programming; and televised content on smartphones, tablets, and personal computers, as well as operates Ignite TV and Ignite TV app. Further, it provides residential and small business local telephony services; calling features, such as voicemail, call waiting, and long distance; voice, data networking, Internet protocol, and Ethernet services; private networking, Internet, IP voice, and cloud solutions; optical wave and multi-protocol label switching services; IT and network technologies; and cable access network services. The company also owns Toronto Blue Jays and the Rogers Centre event venue; and operates Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI, FX (Canada), FXX (Canada), and OLN television networks, as well as 55 AM and FM radio stations. The company was founded in 1960 and is headquartered in Toronto, Canada.

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: 49.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 49.7 is above the 20-day moving average (MA) of 49.01, above the 50-day MA of 47.74, and above the 200-day MA of 40.81, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 61.61 is Neutral, neither overbought nor oversold. The STOCH value of 50.40 is Neutral, 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
QBR.B	79 Outperform	9.74B	12.82	32.64%	3.20%	-1.02%	4.71%
RCI.B	71 Outperform	$26.94B	17.26	13.68%	4.02%	1.87%	71.51%
QBR.A	71 Outperform	9.74B	12.70	32.64%	3.21%	-1.02%	4.71%
T	68 Neutral	33.51B	33.97	6.35%	7.50%	2.56%	21.28%
CCA	67 Neutral	2.74B	8.26	10.46%	5.70%	-0.76%	-1.21%
BCE	59 Neutral	30.04B	70.44	3.33%	8.91%	-0.66%	-78.79%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%