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Rogers Communication (TSE:RCI.B)
TSX:RCI.B
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Rogers Communication (RCI.B) AI Stock Analysis

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TSE:RCI.B

Rogers Communication

(TSX:RCI.B)

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Neutral 65 (OpenAI - Gpt-5.6Sol)
Rating:65Neutral
Price Target:
C$54.00
â–²(6.85% Upside)
Action:Downgraded
Date:07/23/26
The score is driven primarily by a solid operating profile but meaningful leverage and weaker earnings-to-cash conversion, which cap the financial strength rating. The latest earnings call was broadly constructive (reaffirmed guidance, improving free cash flow, lower capital intensity, and modest deleveraging), but wireless ARPU and net-add softness plus monetization execution risk temper confidence. Valuation is a clear positive (very low P/E and strong dividend), while technicals remain bearish with the stock trading below major moving averages and weak momentum.
Positive Factors
Recurring service revenue growth
Strong service revenue growth supports the durability of Rogers’ subscription-based model across wireless, cable, and enterprise connectivity. Continued top-line expansion, alongside EBITDA growth, provides a foundation for reinvestment and strengthens the company’s ability to compound operating performance.
Negative Factors
High leverage limits financial flexibility
Rogers’ substantial debt burden remains a structural constraint on financial flexibility. High leverage increases the importance of consistent cash generation and disciplined capital allocation, while reducing the company’s capacity to absorb operating setbacks or pursue major investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring service revenue growth
Strong service revenue growth supports the durability of Rogers’ subscription-based model across wireless, cable, and enterprise connectivity. Continued top-line expansion, alongside EBITDA growth, provides a foundation for reinvestment and strengthens the company’s ability to compound operating performance.
Read all positive factors

Rogers Communication (RCI.B) vs. iShares MSCI Canada ETF (EWC)

Rogers Communication Business Overview & Revenue Model

Company Description
Rogers Communications Inc., a prominent Canadian entity, specializes in a broad spectrum of telecommunications and media services. Its operations are structured into three primary divisions: Wireless, Cable, and Media. Within its Wireless segment,...
How the Company Makes Money
Rogers makes money primarily by selling subscription-based connectivity services and related add-ons to consumers and businesses. Its largest revenue stream is typically wireless service, where it earns recurring monthly fees from postpaid and pre...

Rogers Communication 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 conveyed a predominantly positive operational and financial performance: strong service revenue growth (+8%), improved free cash flow (+6%) and record-low capital intensity, along with standout sports & media results and a clear plan to monetize MLSE. However, material challenges remain — notably weaker mobile phone net additions (down 34% YoY), a 2% ARPU decline, a CAD 1.0 billion non-cash loss tied to the MLSE put liability, and cautious capital deployment driven by regulatory uncertainty. Management emphasized disciplined execution, deleveraging plans, and sustained lower CapEx run-rates, but some strategic outcomes (minority stake sale, league approvals) carry timing and execution risk.
Positive Updates
Consolidated Revenue and EBITDA Growth
Total service revenue up 8% year-over-year to CAD 5.1 billion; consolidated adjusted EBITDA up 3% to CAD 2.4 billion, demonstrating continued top-line and profit growth across the business.
Negative Updates
Wireless ARPU and Mobile Net Add Weakness
Mobile phone ARPU declined 2% to CAD 54.25; company noted mobile phone net additions are down 34% year-over-year, reflecting a flat/low-growth wireless market and slower phone net intake compared with prior periods.
Read all updates
Q2-2026 Updates
Negative
Consolidated Revenue and EBITDA Growth
Total service revenue up 8% year-over-year to CAD 5.1 billion; consolidated adjusted EBITDA up 3% to CAD 2.4 billion, demonstrating continued top-line and profit growth across the business.
Read all positive updates
Company Guidance
Rogers reaffirmed its 2026 outlook while highlighting Q2 results that underpin it — total service revenue CAD 5.1B (+8% YoY) and adjusted EBITDA CAD 2.4B (+3% YoY); Q2 CapEx was CAD 0.7B (−16% YoY) and full‑year CapEx guidance remains CAD 2.5–2.7B, with consolidated capital intensity improved ~350 bps to ~12–12.4% (the lowest since Q1 2008). Free cash flow was ~CAD 1.0B in Q2 (+6% YoY) and is expected to accelerate in H2; liquidity is >CAD 6B (CAD 1.7B cash + CAD 4.4B available facilities) and leverage was 3.8x (down from 4.0x at Dec 31, 2025), with the planned MLSE close (targeted Q4) and a minority monetization (targeting H1 2027) intended to drive further deleveraging.

Rogers Communication Financial Statement Overview

Summary
Operations look solid with steady revenue growth and consistent operating cash flow, but the balance sheet remains meaningfully leveraged (large debt load and elevated debt-to-equity). Recent profitability is very strong, yet net income has been volatile across years and cash conversion is a weakness (free cash flow well below net income in recent periods), which reduces confidence in earnings quality.
Income Statement
76
Positive
Balance Sheet
54
Neutral
Cash Flow
63
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue22.62B21.71B20.60B19.31B15.40B14.65B
Gross Profit6.37B5.02B9.62B8.58B6.39B5.89B
EBITDA14.27B14.74B9.21B8.22B6.12B5.63B
Net Income6.21B6.89B1.73B849.00M1.68B1.56B
Balance Sheet
Total Assets90.30B90.01B71.41B69.28B55.66B41.96B
Cash, Cash Equivalents and Short-Term Investments1.73B1.34B898.00M800.00M13.30B715.00M
Total Debt45.70B46.60B47.63B45.20B36.75B22.84B
Total Liabilities67.45B65.73B61.01B58.84B45.56B31.43B
Stockholders Equity16.56B24.29B10.40B10.44B10.09B10.53B
Cash Flow
Free Cash Flow2.69B2.35B1.59B1.29B1.42B1.37B
Operating Cash Flow5.82B6.06B5.63B5.22B4.49B4.16B
Investing Cash Flow-6.91B-8.21B-4.46B-20.20B-3.26B-6.13B
Financing Cash Flow-2.62B2.60B-1.08B2.48B11.36B203.00M

Rogers Communication Technical Analysis

Technical Analysis Sentiment
Negative
Last Price50.54
Price Trends
50DMA
48.80
Positive
100DMA
49.27
Negative
200DMA
49.54
Negative
Market Momentum
MACD
0.18
Positive
RSI
45.62
Neutral
STOCH
19.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCI.B, the sentiment is Negative. The current price of 50.54 is above the 20-day moving average (MA) of 50.28, above the 50-day MA of 48.80, and above the 200-day MA of 49.54, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 19.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RCI.B.

Rogers Communication Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
C$14.22B15.2435.86%2.52%3.12%24.49%
69
Neutral
C$14.22B15.2435.86%2.52%3.12%24.49%
65
Neutral
C$26.56B4.1832.78%4.14%8.73%302.65%
64
Neutral
C$28.82B4.5727.73%5.67%1.59%1374.54%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
59
Neutral
C$2.44B-2.18-38.76%6.84%-4.86%-440.35%
46
Neutral
C$19.56B-21.30-6.56%11.83%-1.06%-188.85%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RCI.B
Rogers Communication
48.28
1.60
3.43%
TSE:BCE
BCE
30.88
0.60
1.98%
TSE:T
Telus
12.20
-7.87
-39.20%
TSE:QBR.A
Quebecor Inc Cl A MV
64.44
23.92
59.04%
TSE:CCA
Cogeco Communications
57.68
-2.94
-4.84%
TSE:QBR.B
Quebecor
63.55
22.08
53.25%
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.Date of analysis: Jul 23, 2026