Rogers Communication (RCI.B) AI Stock Analysis

• Market Cap: $27.83B
• Dividend Yield: 3.94%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.35
• Revenue Growth: 2.75%
• EPS Growth: 342.54%
• Country: CA
• Employees: 24,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.51
• Shares Outstanding: 429,073,270
• 10 Day Avg. Volume: 2,028,785
• 30 Day Avg. Volume: 1,389,702
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 3.36
• Enterprise Value/Gross Profit: 14.55
• Enterprise Value/Ebitda: 4.95
• 1Y Price Target: $58.39
• Price Target Upside: 15.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$57.00 ▲(13.10% Upside)

The score is driven by strong valuation (very low P/E and attractive dividend) and improving fundamentals (notably stronger 2025 earnings and free cash flow). Offsetting these positives are balance-sheet leverage risks and only mixed technical momentum, while the latest earnings call was constructive but highlighted ARPU and wireless service revenue pressure alongside elevated leverage.

Positive Factors

Strong Mobile Subscriber Growth

The significant increase in mobile subscribers indicates strong demand for Rogers' services and suggests a growing customer base, which is crucial for long-term revenue growth and market share expansion.

Industry-Leading Margins

High margins in wireless and cable segments demonstrate effective cost management and strategic investments, ensuring sustainable profitability and competitive advantage in the telecommunications industry.

Media Revenue Growth

The robust growth in media revenue highlights the success of Rogers' diversified business model and strengthens its position in the media sector, contributing to overall financial health.

Negative Factors

Flat Wireless Service Revenue

Stagnant wireless service revenue suggests challenges in maintaining growth in a competitive market, potentially impacting future revenue streams and necessitating strategic adjustments.

Decline in Mobile ARPU

A decline in ARPU indicates pricing pressure and reduced profitability per user, which could affect overall revenue and necessitate new strategies to enhance customer value.

Increased Debt Leverage

Higher debt levels following acquisitions increase financial risk and may limit future investment capacity, impacting long-term financial stability and flexibility.

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 Communication generates revenue primarily through its wireless and cable segments. The wireless segment accounts for a significant portion of its income, derived from subscription fees for mobile services, device sales, and data plans. The cable segment generates revenue through subscription fees for television and internet services, with additional income from advertising. Furthermore, the media division contributes to revenues through advertising sales, content licensing, and partnerships with various broadcasters and digital platforms. Strategic partnerships, such as those with major technology and content providers, enhance its service offerings and drive customer acquisition, while its focus on 5G technology and expanding internet services supports growth in the competitive telecom landscape.

Rogers Communication Financial Statement Overview

Summary

Solid operating profile with steady revenue growth and a sharp improvement in 2025 earnings and free cash flow, but the balance sheet remains a key constraint due to historically high leverage and elevated absolute debt levels despite improved equity in 2025.

Income Statement

Revenue has grown steadily from 2020 to 2025, with 2024 showing solid growth and 2025 continuing at a modest pace. Profitability was strong in 2024 (healthy gross, operating, and EBITDA margins), and earnings improved sharply in 2025 versus prior years. The main weakness is volatility in reported profitability across years (notably weaker net margin in 2023), which reduces confidence in the consistency of earnings quality despite the strong recent result.

Balance Sheet

The balance sheet is heavily leveraged: debt is large and has risen materially since 2020, and leverage was very high in 2023–2024 (debt well in excess of equity). Total assets expanded significantly, but the company’s capital structure remains debt-heavy, which can limit flexibility in a higher-rate environment. A key positive is the very large increase in equity reported in 2025, which improves balance-sheet cushioning versus 2024, though absolute debt levels remain elevated.

Cash Flow

Operating cash flow has trended upward overall from 2021 through 2025, supporting the stability expected in a telecom business. Free cash flow improved meaningfully in 2024 and accelerated further in 2025 (strong year-over-year growth), indicating better cash generation. Offsetting this, free cash flow conversion relative to earnings was moderate in 2022–2024, suggesting that not all accounting profit translated into free cash flow during that period.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.71B	20.60B	19.31B	15.40B	14.65B
Gross Profit	5.02B	9.62B	8.58B	6.39B	5.89B
EBITDA	14.74B	9.21B	8.22B	6.12B	5.63B
Net Income	6.89B	1.73B	849.00M	1.68B	1.56B
Balance Sheet
Total Assets	90.01B	71.41B	69.28B	55.66B	41.96B
Cash, Cash Equivalents and Short-Term Investments	1.34B	898.00M	800.00M	13.30B	715.00M
Total Debt	46.60B	47.63B	45.20B	36.75B	22.84B
Total Liabilities	65.73B	61.01B	58.84B	45.56B	31.43B
Stockholders Equity	24.29B	10.40B	10.44B	10.09B	10.53B
Cash Flow
Free Cash Flow	2.35B	1.59B	1.29B	1.42B	1.37B
Operating Cash Flow	6.06B	5.63B	5.22B	4.49B	4.16B
Investing Cash Flow	-8.21B	-4.46B	-20.20B	-3.26B	-6.13B
Financing Cash Flow	2.60B	-1.08B	2.48B	11.36B	203.00M

Rogers Communication Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 50.4 is below the 20-day moving average (MA) of 50.48, below the 50-day MA of 51.30, and above the 200-day MA of 45.78, indicating a bullish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 57.27 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
QBR.A	78 Outperform	C$11.31B	14.03	35.34%	2.70%	-0.29%	15.30%
QBR.B	75 Outperform	C$11.31B	13.94	34.72%	2.69%	-0.29%	15.30%
BCE	72 Outperform	C$32.82B	5.30	31.28%	7.42%	0.11%	7109.23%
CCA	72 Outperform	$2.77B	8.90	10.26%	5.69%	-2.22%	-2.36%
RCI.B	71 Outperform	$27.83B	4.03	40.24%	3.94%	2.75%	342.54%
T	62 Neutral	C$29.47B	24.49	7.30%	9.49%	2.42%	24.37%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%