Rogers Communication (RCI.B) AI Stock Analysis

• Market Cap: $26.90B
• Dividend Yield: 4.02%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.76
• Revenue Growth: 1.87%
• EPS Growth: 71.51%
• Country: CA
• Employees: 24,000
• Sector: Communication Services
• Sector Strength: 96
• Industry: Telecommunications Services
• EPS (TTM): 1.14
• Shares Outstanding: 429,073,270
• 10 Day Avg. Volume: 1,425,666
• 30 Day Avg. Volume: 1,660,816
• 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: 2.49
• Enterprise Value/Revenue: 3.22
• Enterprise Value/Gross Profit: 6.91
• Enterprise Value/Ebitda: 7.40
• 1Y Price Target: $53.78
• Price Target Upside: 9.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: C$53.00 ▲(7.61% Upside)

Rogers Communication's strong financial performance and technical indicators are the primary drivers of its stock score. The company's strategic investments and reasonable valuation further support its position, despite challenges in subscriber growth and regulatory risks.

Positive Factors

Financial Performance

Rogers' Q2/25 results are considered net positive due to a meaningful improvement in cable returns and effective cost containment.

Market Position

The wireless market is showing signs of stabilization, with post-paid net additions slightly higher than expected, and recent upwards price adjustments are seen as constructive.

Valuation

Rogers' share price has reflected little to no recognition for its recent efforts to crystallize value for its sports assets, and consequently is positioned for material upside as the process rolls along.

Negative Factors

Monetization Delays

The anticipated monetization of the Sports assets could take longer than originally expected, potentially extending to H2/26.

Wireless Market Challenges

Wireless volumes and prices remain under pressure with no clear near-term positive inflection point expected.

Rogers Communication Business Overview & Revenue Model

Company Description

Rogers Communications Inc. (RCI.B) is a leading Canadian telecommunications and media company headquartered in Toronto, Ontario. The company operates in various sectors, including wireless communications, cable television, internet, and media. Its core products and services encompass mobile voice and data services, high-speed internet, television services, and content through its media division, which includes broadcasting, digital media, and publishing.

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 shows strong financial health with robust revenue and profit growth, supported by effective cost management. However, high leverage poses potential risks, mitigated by strong returns and cash flows. Overall, the company reflects stability and growth.

Income Statement

Rogers Communication's income statement shows a strong performance with a consistent increase in total revenue, from $13.9B in 2020 to $20.7B TTM (Trailing-Twelve-Months) in 2025. The Gross Profit Margin is healthy at 46.7% TTM, indicating effective control over cost of goods sold. The Net Profit Margin improved significantly from 11.4% in 2020 to 8.5% TTM, reflecting good profitability. Revenue growth rate is positive, demonstrating steady expansion. EBIT and EBITDA margins are robust, at 24.1% and 44.6% TTM respectively, highlighting strong operational efficiency. Overall, the company shows a solid trajectory in revenue and profitability growth, with minor fluctuations.

Balance Sheet

The balance sheet of Rogers Communication reveals a moderate risk profile. The Debt-to-Equity Ratio is high at approximately 4.64 TTM, suggesting significant leverage. However, the company maintains stable Stockholders' Equity which increased over the years. The Return on Equity is commendable at 16.5% TTM, indicating efficient use of equity to generate profits. The Equity Ratio stands at 14.5% TTM, which is low, reflecting high reliance on debt financing. While the high leverage poses potential risks, the company has demonstrated capacity to generate adequate returns.

Cash Flow

Rogers Communication's cash flow statement indicates strong cash generation capability with Operating Cash Flow at $5.8B TTM. The Free Cash Flow improved from $1.1B in 2023 to $1.7B TTM, showing positive growth. The Operating Cash Flow to Net Income Ratio is favorable at 3.3, indicating efficient conversion of net income to cash. The Free Cash Flow to Net Income Ratio is 0.96, suggesting that nearly all of the net income is translated into free cash flow. These metrics reflect the company's strong cash position, despite high capital expenditures.

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	5.86B
EBITDA	9.05B	9.26B	7.61B	6.19B	5.66B	5.76B
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	1.15B	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	1.97B	1.51B	1.10B	1.37B	1.32B	1.95B
Operating Cash Flow	5.92B	5.68B	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	4.45B	-1.13B	2.48B	11.36B	203.00M	227.00M

Rogers Communication Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.25
• 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 49.25 is above the 20-day moving average (MA) of 48.52, above the 50-day MA of 46.19, and above the 200-day MA of 41.11, indicating a bullish trend. The MACD of 0.98 indicates Positive momentum. The RSI at 66.76 is Neutral, neither overbought nor oversold. The STOCH value of 47.09 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
RCI.B	75 Outperform	$26.90B	17.37	13.68%	4.02%	1.87%	71.51%
Sector *	60 Neutral	$46.29B	4.07	-13.12%	4.12%	1.85%	-42.71%
BCE	―	$22.79B	83.29	2.91%	9.99%	―	―
TU	―	$25.08B	35.61	6.08%	7.03%	―	―
QBR.A	70 Outperform	C$10.05B	11.68	34.50%	3.06%	-1.02%	4.71%
CGEAF	―	$1.99B	8.32	10.54%	5.61%	―	―
QBCRF	―	$7.28B	12.86	33.80%	3.11%	―	―