Rogers Communication (RCI.B) AI Stock Analysis

• Market Cap: $23.78B
• Dividend Yield: 6.29%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.82
• Revenue Growth: 1.50%
• EPS Growth: 193.09%
• Country: CA
• Employees: 24,000
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 0.99
• Shares Outstanding: 426,892,270
• 10 Day Avg. Volume: 2,237,705
• 30 Day Avg. Volume: 1,654,716
• PEG Ratio: 2.45
• Price to Book (P/B): 3.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.34
• 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: $50.77
• Price Target Upside: 14.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 72 Outperform
• Price Target: C$48.00 ▲(8.72%Upside)

Rogers Communications exhibits strong financial performance and an attractive valuation. The technical analysis suggests bullish momentum, but caution is advised due to overbought indicators. Earnings call insights are mixed, with solid performance tempered by subscriber declines. Overall, the company is in a solid position with manageable risks.

Positive Factors

Financial Performance

Rogers is making good progress addressing high leverage with the closing of its C$7bn structured equity transaction.

Media Revenue

Media will be a bright spot, as hockey playoff-related revenues are expected to result in year-over-year revenue growth.

Sports Assets

Rogers' share price is positioned for material upside as the process of crystallizing value for its sports assets rolls along.

Negative Factors

Postpaid Market

Street estimates of +43k post-paid net adds appear overly optimistic.

Subscriber Dynamics

Rogers continues to manage negative subscriber base repricing as subscribers come off contract into an environment with lower prices.

Wireless Market

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

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 financing, wireless home phone, device protection, e-mail, global voice and data roaming, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device delivery services; and postpaid and prepaid services under the Rogers, Fido, and chatr brands to approximately 11.3 million subscribers. It also provides Internet and WiFi services; 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 televised content on smartphones, tablets, and personal computers, 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; IT and network technologies; and cable access network services. The company also 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 55 AM and FM radio stations. The company was founded in 1960 and is headquartered in Toronto, Canada.

How the Company Makes Money

Rogers Communications generates revenue through several key streams. The largest portion comes from its wireless segment, which provides mobile voice and data services to individual consumers and businesses. This includes revenue from monthly subscription fees, data usage, and device sales. Another significant revenue stream is its cable segment, offering television, internet, and home phone services to residential customers. Rogers also earns money through its media segment by selling advertising on its television and radio stations, as well as through subscriptions and advertising on its digital platforms. Moreover, the company benefits from its ownership of sports teams and venues, generating income from ticket sales, sponsorships, and broadcast rights. Strategic partnerships and investments in technology infrastructure, such as 5G networks, also play a crucial role in enhancing service offerings and driving growth.

Rogers Communication Financial Statement Overview

Summary

Rogers Communication shows strong financial health with robust revenue and profit growth, efficient operational margins, and solid cash flow generation. However, high leverage and debt levels present potential risks, although they are mitigated by strong returns and cash flows.

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	20.68B	20.60B	19.31B	15.40B	14.65B	13.92B
Gross Profit	9.66B	9.62B	8.58B	6.39B	5.89B	5.86B
EBITDA	9.25B	9.26B	7.61B	6.19B	5.66B	5.76B
Net Income	1.76B	1.73B	849.00M	1.68B	1.56B	1.59B
Balance Sheet
Total Assets	73.12B	71.41B	69.28B	55.66B	41.96B	38.85B
Cash, Cash Equivalents and Short-Term Investments	2.68B	898.00M	800.00M	463.00M	715.00M	2.48B
Total Debt	49.35B	47.63B	45.20B	36.75B	22.84B	21.26B
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 Communication Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 44.15 is above the 20-day moving average (MA) of 39.83, above the 50-day MA of 37.19, and above the 200-day MA of 41.77, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 83.07 is Negative, neither overbought nor oversold. The STOCH value of 90.94 is Negative, 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	72 Outperform	$23.78B	13.25	16.65%	6.29%	1.50%	193.09%
Sector *	61 Neutral	$40.70B	-0.98	-11.97%	3.93%	2.03%	-69.70%
BCE		$21.45B	84.81	2.83%	5.45%	―	―
TU		$24.98B	28.84	7.51%	7.30%	―	―
QBR.A	80 Outperform	C$9.51B	12.91	37.46%	3.29%	-1.11%	8.17%
CGEAF		$2.24B	9.41	10.84%	5.01%	―	―
QBCRF		$6.96B	12.67	37.69%	3.40%	―	―