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

• Market Cap: C$19.72B
• Dividend Yield: 5.01%
• Average Volume (3M): 1.65K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.67
• Revenue Growth: 1.50%
• EPS Growth: 193.09%
• Country: CA
• Employees: 24,000
• Sector: Communication Services
• Sector Strength: 89
• Industry: Telecommunications Services
• EPS (TTM): 0.99
• Shares Outstanding: 111,152,010
• 10 Day Avg. Volume: 1,371
• 30 Day Avg. Volume: 1,649
• PEG Ratio: 9.82
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$50.20
• Price Target Upside: 25.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: ―

Rogers Communications is well-positioned with strong financial performance and strategic corporate actions. Despite high leverage, effective cash flow management and recent equity investments enhance its financial stability. Technical analysis suggests caution due to recent downward trends, but attractive valuation metrics and robust corporate events support a positive outlook.

Rogers Comm Cl A Business Overview & Revenue Model

Company Description

Rogers Communications Inc. is a leading Canadian communications and media company, primarily operating in the telecommunications sector. The company offers a wide range of products and services, including wireless communications, cable television, internet, and media services. Rogers is one of Canada's largest wireless carriers, providing nationwide mobile services, and is also known for its cable offerings, delivering broadband internet and digital television to millions of households. Additionally, the company owns a variety of media assets, including television and radio broadcasting, sports entertainment, and digital media properties.

How the Company Makes Money

Rogers Communications generates revenue through several key streams. The wireless segment is a major contributor, where the company earns money from providing mobile voice and data services to consumers and businesses across Canada. This includes revenue from customer subscriptions, device sales, and roaming charges. Another significant revenue stream comes from the cable segment, where Rogers earns from subscription fees for cable television, internet, and home phone services. The media division also contributes to the company's earnings through advertising sales, content licensing, and subscriber fees for its television and radio stations. Additionally, Rogers benefits from strategic partnerships and joint ventures, such as its ownership of sports teams and venues, which enhance its media and entertainment offerings.

Rogers Comm Cl A Financial Statement Overview

Summary

Rogers Communications exhibits strong revenue and profit growth, with efficient operations and solid cash flow management. The high debt levels are a concern, but consistent cash generation and profitability provide stability. Continued debt reduction efforts, as seen with recent equity investments, could improve financial health.

Income Statement

Rogers Communications has demonstrated strong revenue growth, with a notable increase from $14.66 billion in 2021 to $20.68 billion in TTM (Trailing-Twelve-Months). Gross profit margin remains robust at approximately 46.7% for TTM, indicating efficient cost management. Net profit margin has slightly improved to 8.5% in TTM, reflecting solid profitability. EBIT and EBITDA margins at 24.3% and 44.6% respectively are strong indicators of operational efficiency.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 4.64 in TTM, signaling significant leverage, which could pose a risk in volatile markets. However, the return on equity (ROE) of 16.5% in TTM indicates a good return on shareholders' investments. The equity ratio is 14.5%, suggesting moderate reliance on equity financing.

Cash Flow

Rogers Communications exhibits healthy cash flow management, with a strong operating cash flow to net income ratio of 3.3 in TTM, indicating good cash generation relative to net income. The free cash flow growth rate is positive, increasing from $1.11 billion in 2023 to $1.69 billion in TTM, pointing to improved liquidity and financial flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.68B	20.60B	19.31B	15.40B	14.65B	13.92B
	Gross Profit
9.66B	9.62B	8.58B	6.39B	5.89B	5.86B
	EBIT
5.03B	5.00B	4.46B	3.77B	3.23B	3.21B
	EBITDA
9.25B	9.26B	7.61B	6.19B	5.66B	5.76B
	Net Income Common Stockholders
1.76B	1.73B	849.00M	1.68B	1.56B	1.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.68B	898.00M	800.00M	463.00M	715.00M	2.48B
	Total Assets
73.12B	71.41B	69.28B	55.66B	41.96B	38.85B
	Total Debt
49.35B	47.63B	45.20B	36.75B	22.84B	21.26B
	Net Debt
46.67B	46.73B	44.40B	36.28B	22.13B	18.77B
	Total Liabilities
62.49B	61.01B	58.84B	45.56B	31.43B	29.28B
	Stockholders Equity
10.63B	10.40B	10.44B	10.09B	10.53B	9.57B
Cash Flow		Free Cash Flow
1.69B	1.51B	1.10B	1.37B	1.32B	1.95B
	Operating Cash Flow
5.80B	5.68B	5.22B	4.49B	4.16B	4.32B
	Investing Cash Flow
-4.38B	-4.46B	-20.20B	-3.26B	-6.13B	-2.56B
	Financing Cash Flow
498.00M	-1.13B	2.48B	11.36B	203.00M	227.00M

Rogers Comm Cl A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 39.9 is above the 20-day moving average (MA) of 39.70, below the 50-day MA of 40.70, and below the 200-day MA of 48.24, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 48.10 is Neutral, neither overbought nor oversold. The STOCH value of 61.66 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.A	79 Outperform	C$8.72B	11.54	37.46%	3.49%	-1.11%	8.17%
QBR.B	78 Outperform	$8.72B	11.49	37.69%	3.48%	-1.11%	8.17%
RCI.A	75 Outperform	C$19.72B	12.14	16.56%	5.01%	1.50%	193.09%
RCI.B	74 Outperform	$19.72B	10.90	16.65%	5.51%	1.50%	193.09%
T	68 Neutral	$33.52B	27.97	7.51%	7.05%	1.73%	54.01%
BCE	63 Neutral	$27.22B	69.88	2.83%	13.32%	-1.23%	-78.01%
Sector *	61 Neutral	$14.08B	5.95	-4.18%	3.68%	2.79%	-36.29%

Rogers Comm Cl A Corporate Events

Rogers Communications Shareholders Approve All AGM Proposals

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.

Rogers Communications Declares Quarterly Dividend and Adjusts Reinvestment Plan

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.

Rogers Communications Reports Strong Q1 2025 Results Amid Market Challenges

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.

Rogers Communications Completes Consent Solicitations for Subsidiary Investment

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.

Rogers Secures CDN$7 Billion Equity Investment to Strengthen Financial Position

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.

Rogers Communications Seeks Consent for Debt Amendments Amid Equity Investment

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.