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Rogers Comm Cl A (TSE:RCI.A)
TSX:RCI.A
Canadian Market

Rogers Comm Cl A (RCI.A) AI Stock Analysis

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Rogers Comm Cl A

(TSX:RCI.A)

74Outperform
Rogers Communications' overall stock score is driven by strong financial performance, strategic corporate actions, and an attractive valuation. The robust revenue growth and efficient cash flow management are key strengths, while the high leverage remains a risk. Although technical analysis suggests caution with current downward trends, recent positive corporate events and a favorable valuation provide a compelling investment case.

Rogers Comm Cl A (RCI.A) vs. S&P 500 (SPY)

Rogers Comm Cl A Business Overview & Revenue Model

Company DescriptionRogers Communications Inc. operates as a communications and media company in North America. It operates through three segments: Wireless, Cable, and Media. The company offers mobile Internet access, wireless voice and enhanced voice, device financing, device protection, global voice and data roaming, wireless home phone, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device shipping services; and postpaid and prepaid services under the Rogers, Fido, and chatr brands. It also provides internet and WiFi services; and 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 seasonal games through television, smartphones, tablets, personal computers, and other streaming devices, 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; information technology (IT) and network technologies; cable access network services; and telecommunications technical consulting services. Additionally, the company 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 54 AM and FM radio stations. Rogers Communications Inc. was founded in 1960 and is headquartered in Toronto, Canada.
How the Company Makes MoneyRogers Communications Inc. generates revenue through multiple streams across its three main business segments. The Wireless segment, being one of the largest contributors, earns money from providing mobile voice and data services to both consumers and businesses, with revenue coming from service fees, equipment sales, and roaming charges. The Cable segment derives income from offering broadband internet, television, and home phone services, with subscription fees being a primary revenue source. In the Media segment, Rogers makes money through advertising sales, subscription fees for its digital and streaming platforms, and revenues from sports events and content distribution, leveraging its ownership of media properties and partnerships. Additionally, strategic partnerships and investments in technology and infrastructure enhance its service offerings and operational efficiency, further boosting its revenue potential.

Rogers Comm Cl A Financial Statement Overview

Summary
Rogers Communications demonstrates strong financial performance with significant revenue growth and efficient cash flow management. However, the high leverage ratio poses potential risks. Overall, the financial health is solid, with opportunities for continued growth.
Income Statement
85
Very Positive
Rogers Communications has shown a strong revenue growth trend, increasing from $19.31 billion in 2023 to $20.60 billion in 2024, marking a 6.87% growth rate. The gross profit margin improved to 46.68% in 2024 from 44.44% in 2023. The EBITDA margin is high at 44.20%, indicating efficient operational performance. However, the absence of EBIT in 2024 slightly affects the overall profitability analysis.
Balance Sheet
70
Positive
The company maintains a high debt-to-equity ratio of 4.58 in 2024, which is a potential risk factor, though common in the telecommunications industry due to capital-intensive operations. The return on equity (ROE) is relatively stable at 16.67%, and the equity ratio stands at 14.57%, suggesting a moderate level of equity financing. Overall, the balance sheet reflects both leverage risk and stable equity returns.
Cash Flow
78
Positive
Rogers Communications exhibits strong free cash flow generation with a growth rate of 36.50% from 2023 to 2024. The operating cash flow to net income ratio is favorable at 3.27, indicating robust cash-generating capacity relative to net income. The free cash flow to net income ratio of 0.87 demonstrates a healthy conversion of profits into free cash flow, supporting future operations and investments.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
20.60B19.31B15.40B14.65B13.92B
Gross Profit
9.62B8.58B6.39B5.89B5.86B
EBIT
0.004.46B3.77B3.23B3.21B
EBITDA
9.11B7.61B6.19B5.66B5.76B
Net Income Common Stockholders
1.73B849.00M1.68B1.56B1.59B
Balance SheetCash, Cash Equivalents and Short-Term Investments
898.00M800.00M463.00M715.00M2.48B
Total Assets
71.41B69.28B55.66B41.96B38.85B
Total Debt
47.63B45.20B36.75B22.84B21.26B
Net Debt
46.73B44.40B36.28B22.13B18.77B
Total Liabilities
61.01B58.84B45.56B31.43B29.28B
Stockholders Equity
10.40B10.44B10.09B10.53B9.57B
Cash FlowFree Cash Flow
1.51B1.10B1.37B1.32B1.95B
Operating Cash Flow
5.68B5.22B4.49B4.16B4.32B
Investing Cash Flow
-4.46B-20.20B-3.26B-6.13B-2.56B
Financing Cash Flow
-1.13B2.48B11.36B203.00M227.00M

Rogers Comm Cl A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price39.30
Price Trends
50DMA
42.49
Negative
100DMA
44.82
Negative
200DMA
49.53
Negative
Market Momentum
MACD
-0.91
Negative
RSI
40.87
Neutral
STOCH
40.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCI.A, the sentiment is Negative. The current price of 39.3 is below the 20-day moving average (MA) of 40.31, below the 50-day MA of 42.49, and below the 200-day MA of 49.53, indicating a bearish trend. The MACD of -0.91 indicates Negative momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 40.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RCI.A.

Rogers Comm Cl A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
C$19.43B12.2916.56%5.09%1.50%193.09%
58
Neutral
$13.61B6.75-2.45%3.85%2.33%-35.55%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RCI.A
Rogers Comm Cl A
39.50
-13.95
-26.10%
BCE
BCE
22.01
-7.77
-26.09%
RCI
Rogers Communication
25.24
-11.28
-30.89%
TU
Telus
15.04
0.03
0.20%
CGEAF
Cogeco Communications
46.66
9.02
23.96%
QBCRF
Quebecor
26.32
6.37
31.93%

Rogers Comm Cl A Earnings Call Summary

Earnings Call Date: Apr 23, 2025 | % Change Since: -1.50% | Next Earnings Date: Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call demonstrated strong operational performance with record subscriber growth and innovative financial strategies to reduce debt. However, the decline in roaming revenue presents a challenge. Overall, Rogers is maintaining its competitive edge in the market.
Highlights
Strong Subscriber Growth
Rogers added a record 227,000 mobile phone and Internet net additions in Q3. Over the past 11 quarters, they have added 1.9 million mobile phone and Internet net additions.
Innovative $7 Billion Structured Equity Financing
Rogers announced a $7 billion structured equity financing with a leading global financial investor to pay down debt. This will reduce their debt leverage ratio to 3.7x by year-end, ahead of the 4.2x target.
Industry-leading Margins
Rogers achieved their best-ever cable and wireless margins with wireless service revenue up 2% and adjusted EBITDA up 5%. Cable adjusted EBITDA increased by 5% with margins of 58%.
Record Wireless and Cable Margins
Wireless adjusted EBITDA margin reached an all-time high of 66%, and Cable margins hit 58%, also an all-time high.
Strong Performance in Sports & Media
Sports & Media revenue grew 11%, and adjusted EBITDA rose 25% in Q3.
Lowlights
Roaming Revenue Decline
There was a decline in total roaming revenue, which significantly impacted ARPU negatively in the third quarter.
Company Guidance
During the Q3 2024 earnings call for Rogers Communications, the company provided significant guidance on its financial and operational outlook. They announced a pioneering $7 billion structured equity financing deal with a leading global financial investor, aimed at reducing their debt leverage ratio to 3.7x by year-end, ahead of the previously targeted 4.2x. The transaction is expected to close in Q4 2024 and marks a substantial step in their Shaw deleveraging plans. Rogers highlighted their strong market performance with record mobile phone and Internet net additions of 227,000 for the quarter, contributing to a total of 1.9 million over the past 11 quarters. Wireless service revenue grew by 2%, with adjusted EBITDA up by 5%, achieving industry-leading wireless margins of 66%. Cable revenue showed sequential improvement, with a 1% decline, and cable adjusted EBITDA increased by 5%, reaching a margin of 58%. Their Sports & Media business also delivered robust results with 11% revenue growth and a 25% rise in adjusted EBITDA. Additionally, Rogers reaffirmed its 2024 guidance range targets, emphasizing continued growth and efficiency gains.

Rogers Comm Cl A Corporate Events

Shareholder Meetings
Rogers Communications Shareholders Approve All AGM Proposals
Positive
Apr 24, 2025

Rogers Communications Inc. announced the results of its Annual General Meeting of Shareholders, where all proposed items, including the election of director nominees and the appointment of KPMG LLP as auditors, were approved with overwhelming support. The high percentage of votes in favor reflects strong shareholder confidence in the company’s leadership and strategic direction.

Spark’s Take on TSE:RCI.A Stock

According to Spark, TipRanks’ AI Analyst, TSE:RCI.A is a Outperform.

Rogers Communications’ strong financial performance and strategic corporate actions underpin a robust investment case. Despite high leverage, the company’s attractive valuation and proactive efforts to improve financial stability through equity investments and debt reduction enhance its appeal. Technical analysis suggests caution due to recent downward trends, but the overall outlook remains positive due to the company’s strong cash flows and market positioning.

To see Spark’s full report on TSE:RCI.A stock, click here.

DividendsBusiness Operations and Strategy
Rogers Communications Declares Quarterly Dividend and Adjusts Reinvestment Plan
Positive
Apr 23, 2025

Rogers Communications announced a quarterly dividend of 50 cents per share for its Class A and Class B shares, to be paid on July 3, 2025, to shareholders of record as of June 9, 2025. The company also stated that shares purchased under its Dividend Reinvestment Plan will be acquired on the open market without a discount, reflecting a strategic decision to maintain share value and potentially attract more investors.

Spark’s Take on TSE:RCI.A Stock

According to Spark, TipRanks’ AI Analyst, TSE:RCI.A is a Outperform.

Rogers Communications’ strong financial performance and strategic corporate actions bolster its position, despite high leverage. Technical analysis suggests caution due to recent downward trends, yet the attractive valuation and robust corporate events support a positive outlook.

To see Spark’s full report on TSE:RCI.A stock, click here.

Business Operations and StrategyFinancial Disclosures
Rogers Communications Reports Strong Q1 2025 Results Amid Market Challenges
Positive
Apr 23, 2025

Rogers Communications reported strong financial results for the first quarter of 2025, with growth in service revenue and adjusted EBITDA, despite a slowing market. The company achieved significant balance sheet deleveraging with a $7 billion minority equity investment, reducing its debt leverage ratio. Key achievements include a 12-year agreement with the NHL for national media rights and the launch of Canada’s first commercial deployment of Ericsson 5G Cloud RAN technology. Rogers continues to invest in network expansion and strategic initiatives to drive long-term growth and shareholder value.

Spark’s Take on TSE:RCI.A Stock

According to Spark, TipRanks’ AI Analyst, TSE:RCI.A is a Outperform.

Rogers Communications’ strong financial performance and strategic corporate actions bolster its position, despite high leverage. Technical analysis suggests caution due to recent downward trends, yet the attractive valuation and robust corporate events support a positive outlook.

To see Spark’s full report on TSE:RCI.A stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Rogers Communications Completes Consent Solicitations for Subsidiary Investment
Positive
Apr 16, 2025

Rogers Communications Inc. has successfully completed consent solicitations to amend indentures for its senior notes, facilitating a subsidiary equity investment. This move clarifies that the investment is not restricted by existing covenants and aligns non-financial terms of Shaw Notes with other Canadian dollar notes, potentially strengthening Rogers’ financial flexibility and market position.

Spark’s Take on TSE:RCI.A Stock

According to Spark, TipRanks’ AI Analyst, TSE:RCI.A is a Outperform.

Rogers Communications exhibits strong financial performance and valuation metrics, supported by strategic corporate events that enhance its financial stability. Despite the high leverage, the company’s strong cash flows and revenue growth present a solid investment opportunity. The technical analysis suggests some caution with current market trends, but the overall outlook remains positive.

To see Spark’s full report on TSE:RCI.A stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Rogers Secures CDN$7 Billion Equity Investment to Strengthen Financial Position
Positive
Apr 4, 2025

Rogers Communications has entered into a definitive agreement for a CDN$7 billion equity investment with Blackstone and leading Canadian institutional investors. This strategic move aims to reduce Rogers’ debt leverage ratio by 0.7x and strengthen its balance sheet by repaying debt, while maintaining full operational control over its wireless network. The transaction is expected to close in the second quarter of 2025, and Rogers plans to use the proceeds to unlock the unrecognized value of its critical assets, thereby enhancing its investment grade balance sheet.

Private Placements and FinancingBusiness Operations and Strategy
Rogers Communications Seeks Consent for Debt Amendments Amid Equity Investment
Positive
Apr 4, 2025

Rogers Communications Inc. has initiated consent solicitations to amend the indentures of certain senior notes to facilitate a subsidiary equity investment with Blackstone. This strategic move is aimed at using the investment proceeds to repay debt, and Rogers seeks to clarify that the equity investment is not restricted by existing debt covenants. This action is expected to enhance Rogers’ financial flexibility and strengthen its market position.

Private Placements and FinancingM&A Transactions
Rogers Communications Prices $3.1 Billion in Subordinated Notes
Positive
Feb 11, 2025

Rogers Communications Inc. announced the pricing of a public offering of US$2.1 billion in fixed-to-fixed rate subordinated notes and a Canadian private placement of Cdn$1.0 billion. The proceeds from these offerings will be used to repay outstanding debt and partially fund the acquisition of BCE Inc.’s stake in Maple Leaf Sports & Entertainment Inc., a move that could strengthen Rogers’ strategic positioning and enhance its portfolio.

Business Operations and StrategyFinancial Disclosures
Rogers Communications Achieves Record Revenue in 2024, Sets 2025 Growth Outlook
Positive
Jan 30, 2025

Rogers Communications reported strong financial performance for 2024 with over $20 billion in annual revenue, driven by significant growth in wireless and internet services. The company led Canadian carriers in mobile and internet net additions, reflecting robust market demand despite competitive pressures. The year concluded with a third consecutive period of industry-leading performance, marked by a 7% increase in service revenue and 12% growth in adjusted EBITDA. Looking ahead to 2025, Rogers anticipates continued growth and expansion efforts, with strategic investments in their network and technology partnerships to enhance resilience and service quality.

Dividends
Rogers Communications Declares Quarterly Dividend with Reinvestment Option
Positive
Jan 30, 2025

Rogers Communications announced a quarterly dividend of 50 cents per share for its Class A and Class B shares, payable on April 2, 2025, to shareholders of record as of March 10, 2025. Shareholders can opt to reinvest dividends in additional Class B shares, which will be issued at a 2% discount from the average market price under the company’s Dividend Reinvestment Plan, potentially enhancing shareholder value and encouraging long-term investment.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.