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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)

Rating:67Neutral
Price Target:
C$52.00
▲(11.21%Upside)
Rogers Communications scores well due to strong financial performance and strategic corporate events, demonstrating robust growth and stability. While technical indicators suggest caution due to overbought signals, the company's valuation and high dividend yield remain attractive.

Rogers Comm Cl A (RCI.A) vs. iShares MSCI Canada ETF (EWC)

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 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 Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q3-2024)
|
% Change Since: 18.65%|
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.
Q3-2024 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview

Summary
Rogers Communications shows strong revenue and profit growth, with efficient operations and solid cash flow management. The high debt levels remain a concern, but consistent cash flow and profitability provide a stable financial outlook.
Income Statement
85
Very Positive
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
75
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.68B20.60B19.31B15.40B14.65B13.92B
Gross Profit9.66B9.62B8.58B6.39B5.89B5.86B
EBITDA9.25B9.26B7.61B6.19B5.66B5.76B
Net Income1.76B1.73B849.00M1.68B1.56B1.59B
Balance Sheet
Total Assets73.12B71.41B69.28B55.66B41.96B38.85B
Cash, Cash Equivalents and Short-Term Investments2.68B898.00M800.00M463.00M715.00M2.48B
Total Debt49.35B47.63B45.20B36.75B22.84B21.26B
Total Liabilities62.49B61.01B58.84B45.56B31.43B29.28B
Stockholders Equity10.63B10.40B10.44B10.09B10.53B9.57B
Cash Flow
Free Cash Flow1.69B1.51B1.10B1.37B1.32B1.95B
Operating Cash Flow5.80B5.68B5.22B4.49B4.16B4.32B
Investing Cash Flow-4.38B-4.46B-20.20B-3.26B-6.13B-2.56B
Financing Cash Flow498.00M-1.13B2.48B11.36B203.00M227.00M

Rogers Comm Cl A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price46.76
Price Trends
50DMA
40.97
Positive
100DMA
41.43
Positive
200DMA
45.76
Positive
Market Momentum
MACD
1.68
Negative
RSI
79.58
Negative
STOCH
85.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCI.A, the sentiment is Positive. The current price of 46.76 is above the 20-day moving average (MA) of 43.26, above the 50-day MA of 40.97, and above the 200-day MA of 45.76, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 79.58 is Negative, neither overbought nor oversold. The STOCH value of 85.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RCI.A.

Rogers Comm Cl A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
C$23.78B14.2316.56%4.28%1.50%193.09%
61
Neutral
$40.69B-0.79-11.97%3.78%2.11%-69.16%
BCBCE
$21.47B84.812.83%5.56%
RCRCI
$17.62B13.5416.65%4.49%
TUTU
$25.00B28.847.51%7.33%
76
Outperform
C$9.51B12.9137.46%3.29%-1.11%8.17%
$6.96B12.6737.69%3.40%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RCI.A
Rogers Comm Cl A
47.25
-3.19
-6.32%
BCE
BCE
23.91
-5.07
-17.49%
RCI
Rogers Communication
32.25
-2.50
-7.19%
TU
Telus
16.38
2.14
15.03%
TSE:QBR.A
Quebecor Inc Cl A MV
42.52
13.74
47.74%
QBCRF
Quebecor
30.30
10.35
51.88%

Rogers Comm Cl A Corporate Events

M&A TransactionsBusiness Operations and Strategy
Rogers Becomes Majority Owner of Maple Leaf Sports & Entertainment
Positive
Jul 2, 2025

Rogers Communications has acquired BCE’s 37.5% stake in Maple Leaf Sports & Entertainment (MLSE) for C$4.7 billion, becoming the majority owner with a 75% interest. This acquisition enhances Rogers’ leadership in Canadian sports, aligning with its strategy to invest in sports and entertainment, and aims to bring more championships to Canada. The transaction, funded through revolving bank credit facilities and cash on hand, is expected to unlock more value for Rogers shareholders and further solidify its position in the industry.

The most recent analyst rating on ($TSE:RCI.A) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Rogers Comm Cl A stock, see the TSE:RCI.A Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Rogers Secures CDN$7 Billion Investment to Strengthen Financial Position
Positive
Jun 20, 2025

Rogers Communications Inc. has successfully closed a CDN$7 billion equity investment transaction with Blackstone and leading Canadian institutional investors. This investment allows Rogers to repay debt while maintaining full operational control of its wireless network, demonstrating investor confidence and unlocking the value of its assets.

The most recent analyst rating on ($TSE:RCI.A) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Rogers Comm Cl A stock, see the TSE:RCI.A Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Rogers Expands Ownership in MLSE with NBA TV Canada Approval
Positive
Jun 12, 2025

Rogers Communications has received approval from the Canadian Radio-television and Telecommunications Commission to acquire Bell’s interest in Toronto Raptors Network Ltd (NBA TV Canada), further expanding its ownership in Maple Leaf Sports & Entertainment (MLSE). This strategic acquisition, valued at C$4.7 billion, positions Rogers as a majority owner of MLSE, reinforcing its commitment to live sports and entertainment as a core business strategy.

The most recent analyst rating on ($TSE:RCI.A) stock is a Buy with a C$54.00 price target. To see the full list of analyst forecasts on Rogers Comm Cl A stock, see the TSE:RCI.A Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Rogers Gains League Approval for MLSE Acquisition
Positive
Jun 4, 2025

Rogers Communications has received all necessary league approvals to acquire Bell’s 37.5% stake in Maple Leaf Sports & Entertainment (MLSE), making it the 75% owner of the prestigious sports and entertainment organization. This acquisition aligns with Rogers’ core business strategy, emphasizing the importance of live sports and entertainment in its operations. The deal, valued at C$4.7 billion, is pending approval from the CRTC for an additional indirect interest in Toronto Raptors Network Ltd, but has already been cleared by the Competition Bureau.

The most recent analyst rating on ($TSE:RCI.A) stock is a Buy with a C$70.00 price target. To see the full list of analyst forecasts on Rogers Comm Cl A stock, see the TSE:RCI.A Stock Forecast page.

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.

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.

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.

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.

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 03, 2025