Rogers Communication (RCI.B) AI Stock Analysis

• Market Cap: C$27.42B
• Dividend Yield: 3.94%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.41
• Revenue Growth: 2.75%
• EPS Growth: 342.54%
• Country: CA
• Employees: 24,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.37
• Shares Outstanding: 429,073,270
• 10 Day Avg. Volume: 1,048,334
• 30 Day Avg. Volume: 1,401,922
• PEG Ratio: 0.14
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 14.82
• 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: C$58.00
• Price Target Upside: 15.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: C$63.00 ▲(25.00% Upside)

Rogers Communication's strong technical indicators and attractive valuation are the most significant factors driving the score. The company's robust operational performance, despite challenges with debt and cash flow, supports a positive outlook. Earnings call insights reinforce the company's growth potential, although caution is advised due to leverage concerns.

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

Rogers Communication demonstrates strong revenue growth and solid operational margins. However, high leverage poses a financial risk, and there is room for improvement in cash flow conversion.

Income Statement

Rogers Communication shows a strong revenue growth trajectory, with a notable increase in revenue over the TTM period. The gross profit margin remains stable, indicating efficient cost management. However, the net profit margin has decreased slightly, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting solid operational performance.

Balance Sheet

The company has a high debt-to-equity ratio, which indicates significant leverage and potential financial risk. However, the return on equity is reasonable, showing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing assets.

Cash Flow

Rogers Communication demonstrates positive free cash flow growth, which is a strong indicator of financial health. The operating cash flow to net income ratio is robust, indicating good cash generation relative to reported earnings. However, the free cash flow to net income ratio suggests room for improvement in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.02B	20.60B	19.31B	15.40B	14.65B	13.92B
Gross Profit	9.66B	9.62B	8.58B	6.39B	5.89B	5.77B
EBITDA	14.65B	9.21B	8.22B	6.12B	5.63B	5.54B
Net Income	6.75B	1.73B	849.00M	1.68B	1.56B	1.59B
Balance Sheet
Total Assets	89.61B	71.41B	69.28B	55.66B	41.96B	38.85B
Cash, Cash Equivalents and Short-Term Investments	1.51B	898.00M	800.00M	13.30B	715.00M	2.48B
Total Debt	43.36B	47.63B	45.20B	36.75B	22.84B	21.26B
Total Liabilities	65.98B	61.01B	58.84B	45.56B	31.43B	29.28B
Stockholders Equity	16.94B	10.40B	10.44B	10.09B	10.53B	9.57B
Cash Flow
Free Cash Flow	1.50B	1.59B	1.29B	1.42B	1.37B	2.01B
Operating Cash Flow	5.01B	5.63B	5.22B	4.49B	4.16B	4.32B
Investing Cash Flow	-6.76B	-4.46B	-20.20B	-3.26B	-6.13B	-2.56B
Financing Cash Flow	4.00B	-1.08B	2.48B	11.36B	203.00M	227.00M

Rogers Communication Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 50.4 is below the 20-day moving average (MA) of 50.89, below the 50-day MA of 52.08, and above the 200-day MA of 44.72, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 7.43 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCI.B	80 Outperform	C$27.42B	4.04	47.62%	3.94%	2.75%	342.54%
QBR.A	78 Outperform	C$11.69B	14.47	35.34%	2.70%	-0.29%	15.30%
QBR.B	75 Outperform	$11.69B	14.38	34.72%	2.69%	-0.29%	15.30%
BCE	72 Outperform	$30.79B	4.97	31.28%	7.42%	0.11%	7109.23%
CCA	66 Neutral	$2.87B	8.87	10.26%	5.69%	-2.22%	-2.36%
T	62 Neutral	C$28.82B	23.95	7.30%	9.49%	2.42%	24.37%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%