Rogers Communication (TSE:RCI.B)
TSX:RCI.B
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Rogers Communication
(TSX:RCI.B)
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Rating:71Outperform
Price Target:
C$56.00
â–²(22.89% Upside)
Action:UpgradedDate:04/24/26
The score is driven primarily by strong profitability and constructive earnings guidance (FCF outlook, lower CapEx, and deleveraging). The main constraints are elevated balance-sheet leverage and mixed cash conversion, while technical signals are neutral-to-mixed and valuation is reasonable with a supportive dividend yield.
Positive Factors
Wireless margin leadership
Sustained industry-leading wireless margins (67%) combined with very low churn (1.11% full year) indicate durable pricing power and customer retention in a subscription business. That structural margin and subscriber stability support long-term cash generation and resilience versus competitors.
Negative Factors
Elevated leverage
Capital structure remains a long-term constraint: materially elevated leverage and shrinking equity amplify downside risk from cyclical revenue or cash-flow shocks, restrict strategic flexibility, and increase refinancing and interest-rate exposure over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Wireless margin leadership
Sustained industry-leading wireless margins (67%) combined with very low churn (1.11% full year) indicate durable pricing power and customer retention in a subscription business. That structural margin and subscriber stability support long-term cash generation and resilience versus competitors.
Read all positive factors
Rogers Communication (RCI.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$26.78B
Dividend Yield3.94%
Average Volume (3M)1.96M
Price to Earnings (P/E)16.5
Beta (1Y)0.17
Revenue Growth7.44%
EPS Growth297.46%
CountryCA
Employees24,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.01
Shares Outstanding429,073,270
10 Day Avg. Volume2,542,698
30 Day Avg. Volume1,955,429
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.15
Price to Sales (P/S)1.28
P/FCF Ratio11.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$59.51Price Target Upside30.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)4.71
Revenue Forecast (FY)C$22.55B
Rogers Communication Business Overview & Revenue Model
Company Description
Rogers Communications Inc. operates as a communications and media company in Canada. It operates through three segments: Wireless, Cable, and Media. The company offers mobile Internet access, wireless voice and enhanced voice, device and accessory...
How the Company Makes Money
Rogers primarily makes money by selling subscription-based connectivity and communication services and, to a lesser extent, through media and sports-related revenue streams.
1) Wireless (mobile) service revenue: A major portion of Rogers’ revenue...
Rogers Communication Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operational and financial achievements—industry-leading wireless and cable margins, meaningful deleveraging, improved free cash flow, successful strategic transactions (MLSE control, $7B equity investment) and a standout media performance driven by sports assets. Management acknowledged near-term challenges including competitive promotional pressure, ARPU headwinds (notably roaming), reliance on unpredictable sports postseason revenue, and regulatory/competitive factors that constrain certain capital investments. On balance, the positive outcomes (margin expansion, cash flow, deleveraging and strategic positioning) materially outweigh the risks and uncertainties discussed.Positive Updates
Industry-Leading Wireless Margins and Stability
Wireless adjusted EBITDA of $1.4B in Q4 (up 1% YoY) and an industry-leading wireless margin of 67% (up 40 bps YoY). Postpaid churn improved to 1.43% in Q4 (down 10 bps) and full-year churn was 1.11%.
Negative Updates
Competitive Promotional Pressure and Lower Q4 Net Adds
Highly competitive wireless holiday selling period with heavy discounting by peers; Rogers reported comparatively lower Q4 net adds (39,000) after electing not to follow uneconomic promotional loading.
Read all updates
Q4-2025 Updates
Positive
Negative
Industry-Leading Wireless Margins and Stability
Wireless adjusted EBITDA of $1.4B in Q4 (up 1% YoY) and an industry-leading wireless margin of 67% (up 40 bps YoY). Postpaid churn improved to 1.43% in Q4 (down 10 bps) and full-year churn was 1.11%.
Read all positive updates
Company Guidance
Rogers' 2026 guidance targets total service revenue growth of 3–5% and adjusted EBITDA growth of 1–3%, with capital expenditures expected to decline to $3.3–3.5 billion (versus $3.7B in 2025 and $4.0B in 2024) and free cash flow forecast at $3.3–3.5 billion; management expects further reductions in capital intensity from Q4’s 15% level, continued deleveraging from year‑end net leverage of 3.9x (down 0.6x YoY), and highlighted key variances—upside from Sports & Media/MLSE scale and postseason revenue (pro forma 2025 media revenue ~ $4.1B and EBITDA ~ $400M) and downside from heightened wireless promotional discounting/ARPU pressure—while noting Q4 consolidated service revenue was $5.3B and adjusted EBITDA $2.7B, full‑year revenue $21.7B and EBITDA $9.8B, and available liquidity of $5.9B.Rogers Communication Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.22B | 21.71B | 20.60B | 19.31B | 15.40B | 14.65B |
| Gross Profit | 7.49B | 5.02B | 9.62B | 8.58B | 6.39B | 5.89B |
| EBITDA | 15.21B | 14.74B | 9.21B | 8.22B | 6.12B | 5.63B |
| Net Income | 7.09B | 6.89B | 1.73B | 849.00M | 1.68B | 1.56B |
Balance Sheet | ||||||
| Total Assets | 89.96B | 90.01B | 71.41B | 69.28B | 55.66B | 41.96B |
| Cash, Cash Equivalents and Short-Term Investments | 1.39B | 1.34B | 898.00M | 800.00M | 13.30B | 715.00M |
| Total Debt | 44.80B | 46.60B | 47.63B | 45.20B | 36.75B | 22.84B |
| Total Liabilities | 65.64B | 65.73B | 61.01B | 58.84B | 45.56B | 31.43B |
| Stockholders Equity | 17.98B | 24.29B | 10.40B | 10.44B | 10.09B | 10.53B |
Cash Flow | ||||||
| Free Cash Flow | 2.58B | 2.35B | 1.59B | 1.29B | 1.42B | 1.37B |
| Operating Cash Flow | 5.84B | 6.06B | 5.63B | 5.22B | 4.49B | 4.16B |
| Investing Cash Flow | -6.88B | -8.21B | -4.46B | -20.20B | -3.26B | -6.13B |
| Financing Cash Flow | 1.28B | 2.60B | -1.08B | 2.48B | 11.36B | 203.00M |
Rogers Communication Technical Analysis
Negative
45.57
Price Trends
51.44
Negative
51.07
Negative
49.67
Negative
Market Momentum
-2.06
Positive
27.60
Positive
29.37
Neutral
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 45.57 is below the 20-day moving average (MA) of 49.34, below the 50-day MA of 51.44, and below the 200-day MA of 49.67, indicating a bearish trend. The MACD of -2.06 indicates Positive momentum. The RSI at 27.60 is Positive, neither overbought nor oversold. The STOCH value of 29.37 is Neutral, 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$12.85B | 13.87 | 35.31% | 2.69% | 0.65% | 15.80% | |
71 Outperform | C$26.78B | 16.49 | 40.28% | 3.94% | 7.44% | 297.46% | |
71 Outperform | C$12.85B | 13.87 | 35.31% | 2.70% | 0.65% | 15.80% | |
64 Neutral | C$30.10B | 4.71 | 31.99% | 7.42% | 0.24% | 3689.26% | |
62 Neutral | C$2.66B | 9.50 | 9.93% | 5.69% | -4.35% | -3.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | C$26.55B | 24.88 | 7.68% | 9.49% | 1.03% | 9.34% |
* Communication Services Sector Average
TSE:RCI.B
Rogers Communication
49.50
15.75
46.68%
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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.