Executive Summary
Rogers Communications Inc. operates as a communications and media company in Canada.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer and fair value.
Similar Companies
Share Price & News
How has Rogers Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RCI.B has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.8%
RCI.B
4.3%
CA Wireless Telecom
6.3%
CA Market
1 Year Return
-14.9%
RCI.B
9.2%
CA Wireless Telecom
-19.7%
CA Market
Return vs Industry: RCI.B underperformed the Canadian Wireless Telecom industry which returned 7.1% over the past year.
Return vs Market: RCI.B exceeded the Canadian Market which returned -22.9% over the past year.
Shareholder returns
| RCI.B | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.8% | 4.3% | 6.3% |
| 30 Day | -0.3% | -1.9% | -5.3% |
| 90 Day | -5.9% | 8.7% | -20.3% |
| 1 Year | -12.2%-14.9% | 10.7%9.2% | -17.0%-19.7% |
| 3 Year | 10.2%0.7% | 15.7%11.1% | -7.9%-16.5% |
| 5 Year | 71.0%44.7% | 82.2%65.0% | 3.7%-11.8% |
Price Volatility Vs. Market
How volatile is Rogers Communications's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
How Much Are Rogers Communications Inc. (TSE:RCI.B) Insiders Spending On Buying Shares?1 month ago | Simply Wall St
We Think Rogers Communications (TSE:RCI.B) Is Taking Some Risk With Its Debt1 month ago | Simply Wall St
Here's What Rogers Communications Inc.'s (TSE:RCI.B) ROCE Can Tell UsValuation
Is Rogers Communications undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RCI.B (CA$61.77) is trading below our estimate of fair value (CA$132.22)
Significantly Below Fair Value: RCI.B is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RCI.B is good value based on its PE Ratio (15.5x) compared to the Wireless Telecom industry average (18.7x).
PE vs Market: RCI.B is poor value based on its PE Ratio (15.5x) compared to the Canadian market (10.5x).
Price to Earnings Growth Ratio
PEG Ratio: RCI.B is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: RCI.B is overvalued based on its PB Ratio (3.3x) compared to the XN Wireless Telecom industry average (1.6x).
Next Steps
Future Growth
How is Rogers Communications forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
5.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCI.B's forecast earnings growth (5.4% per year) is above the savings rate (1.4%).
Earnings vs Market: RCI.B's earnings (5.4% per year) are forecast to grow faster than the Canadian market (5.2% per year).
High Growth Earnings: RCI.B's earnings are forecast to grow, but not significantly.
Revenue vs Market: RCI.B's revenue (1.5% per year) is forecast to grow slower than the Canadian market (3.3% per year).
High Growth Revenue: RCI.B's revenue (1.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RCI.B's Return on Equity is forecast to be low in 3 years time (18.5%).
Next Steps
Past Performance
How has Rogers Communications performed over the past 5 years?
13.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RCI.B has high quality earnings.
Growing Profit Margin: RCI.B's current net profit margins (13.6%) are lower than last year (13.6%).
Past Earnings Growth Analysis
Earnings Trend: RCI.B's earnings have grown by 13.6% per year over the past 5 years.
Accelerating Growth: RCI.B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RCI.B had negative earnings growth (-0.8%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-5.6%).
Return on Equity
High ROE: Whilst RCI.B's Return on Equity (21.7%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Rogers Communications's financial position?
Financial Position Analysis
Short Term Liabilities: RCI.B's short term assets (CA$5.1B) do not cover its short term liabilities (CA$6.0B).
Long Term Liabilities: RCI.B's short term assets (CA$5.1B) do not cover its long term liabilities (CA$21.6B).
Debt to Equity History and Analysis
Debt Level: RCI.B's debt to equity ratio (193.3%) is considered high.
Reducing Debt: RCI.B's debt to equity ratio has reduced from 285.4% to 193.3% over the past 5 years.
Debt Coverage: RCI.B's debt is well covered by operating cash flow (24.9%).
Interest Coverage: RCI.B's interest payments on its debt are well covered by EBIT (4.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Rogers Communications's current dividend yield, its reliability and sustainability?
3.29%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RCI.B's dividend (3.24%) is higher than the bottom 25% of dividend payers in the Canadian market (2.68%).
High Dividend: RCI.B's dividend (3.24%) is low compared to the top 25% of dividend payers in the Canadian market (8.42%).
Stability and Growth of Payments
Stable Dividend: RCI.B's dividends per share have been stable in the past 10 years.
Growing Dividend: RCI.B's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (50.1%), RCI.B's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RCI.B's dividends in 3 years are forecast to be well covered by earnings (45.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Joe Natale (55yo)
3s
Tenure
CA$11,703,950
Compensation
Mr. Joseph M. Natale, also known as Joe, is a Co-Founder and Managing Partner of Relay Ventures. Mr. Natale has been Chief Executive Officer, President and Director at Rogers Communications Inc. since Apri ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD8.27M) is about average for companies of similar size in the Canadian market ($USD6.63M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3yrs | CA$11.70m | 0.00021% CA$65.1k | |
| Chief Financial Officer | 8yrs | CA$4.88m | 0.000040% CA$12.4k | |
| President of Rogers for Business | 2.58yrs | CA$3.41m | 0.00018% CA$55.8k | |
| President of Wireless Division | 1.83yrs | CA$3.53m | 0.000020% CA$6.2k | |
| President of Media Division | 0.58yr | CA$4.52m | no data | |
| Senior Vice President of Corporate Finance | no data | no data | no data | |
| Chief Technology & Information Officer | 2.17yrs | CA$5.42m | 0.00017% CA$52.7k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Legal & Regulatory Officer and Secretary | 1.83yrs | no data | no data | |
| Chief Communications Officer | 0.17yr | no data | no data |
2.0yrs
Average Tenure
Experienced Management: RCI.B's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3yrs | CA$11.70m | 0.00021% CA$65.1k | |
| Non-Executive Vice Chair | 29.25yrs | CA$929.07k | 0.076% CA$23.4m | |
| Non-Independent Director | 14.25yrs | CA$303.61k | 0.27% CA$83.3m | |
| Independent Director | 29yrs | CA$262.85k | 0.015% CA$4.7m | |
| Non-Independent Director | 40.33yrs | CA$258.36k | 0.011% CA$3.3m | |
| Non-Independent Deputy Chair | 2.25yrs | CA$527.04k | 0.12% CA$37.6m | |
| Independent Director | 12yrs | CA$284.46k | no data | |
| Non-Independent Director | 11.33yrs | CA$258.59k | 0.22% CA$68.3m | |
| Non-Independent Chair of the Board | 2.25yrs | CA$1.08m | 0.36% CA$111.8m | |
| Independent Lead Director | 2yrs | CA$385.42k | 0.0015% CA$474.4k |
11.7yrs
Average Tenure
61yo
Average Age
Experienced Board: RCI.B's board of directors are seasoned and experienced ( 11.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Rogers Communications Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Rogers Communications Inc.
- Ticker: RCI.B
- Exchange: TSX
- Founded: 1960
- Industry: Wireless Telecommunication Services
- Sector: Telecom
- Market Cap: CA$31.005b
- Shares outstanding: 504.93m
- Website: https://www.rogers.com
Number of Employees
Location
- Rogers Communications Inc.
- 333 Bloor Street East
- Toronto
- Ontario
- M4W 1G9
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RCI.A | TSX (The Toronto Stock Exchange) | Class A Common Shares | CA | CAD | Dec 1972 | |
| RCIA.F | OTCPK (Pink Sheets LLC) | Class A Common Shares | US | USD | Dec 1972 | |
| RCI | NYSE (New York Stock Exchange) | Yes | Class B Non-Voting Common Shares | US | USD | Nov 1979 |
| RCI.B | TSX (The Toronto Stock Exchange) | Yes | Class B Non-Voting Common Shares | CA | CAD | Nov 1979 |
| RCIB | DB (Deutsche Boerse AG) | Yes | Class B Non-Voting Common Shares | DE | EUR | Nov 1979 |
Biography
Rogers Communications Inc. operates as a communications and media company in Canada. It operates through three segments: Wireless, Cable, and Media. The Wireless segment offers wireless voice and data communication services to individual consumers, businesses, governments, and other telecommunications service providers; postpaid and prepaid wireless services under the Rogers, Fido, and chatr brands; and wireless devices, services, and applications to consumers and businesses. It provides its services to approximately 10.8 million subscribers. The Cable segment provides high-speed Internet, television, voice communication, and smart home monitoring services to consumers, businesses, governments, and wholesale resellers; and operates a transcontinental fiber-optic network that extends approximately 70,000 route kilometers, which provides voice and data communications and advanced services, including data centers and cloud computing to the enterprise, public sector, and carrier wholesale markets. Its service territory covers approximately 4.4 million homes. The Media segment owns the Toronto Blue Jays league baseball team and the Rogers Centre event venue; and offers television and radio broadcasting, multi-platform shopping experience, digital media, and publishing services. Rogers Communications Inc. was founded in 1960 and is based in Toronto, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 03:00 |
| End of Day Share Price | 2020/04/08 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.