Executive Summary
Rogers Communications Inc. operates as a communications and media company in Canada. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
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
9.0%
RCI.B
-1.5%
CA Wireless Telecom
-0.5%
CA Market
1 Year Return
-4.5%
RCI.B
22.8%
CA Wireless Telecom
-3.5%
CA Market
Return vs Industry: RCI.B underperformed the Canadian Wireless Telecom industry which returned 21.7% over the past year.
Return vs Market: RCI.B matched the Canadian Market which returned -4.3% over the past year.
Shareholder returns
| RCI.B | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.0% | -1.5% | -0.5% |
| 30 Day | 14.5% | 3.5% | 3.0% |
| 90 Day | 7.5% | 5.3% | 2.4% |
| 1 Year | -1.3%-4.5% | 23.8%22.8% | -0.06%-3.5% |
| 3 Year | -5.2%-13.6% | 41.8%36.9% | 7.1%-3.3% |
| 5 Year | 32.0%12.2% | 112.8%98.3% | 36.8%15.8% |
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
1 week ago | Simply Wall St
Are Investors Undervaluing Rogers Communications Inc. (TSE:RCI.B) By 47%?3 weeks ago | Simply Wall St
How Does Rogers Communications Inc. (TSE:RCI.B) Fare As A Dividend Stock?1 month ago | Simply Wall St
What Do The Returns On Capital At Rogers Communications (TSE:RCI.B) Tell Us?Valuation
Is Rogers Communications undervalued compared to its fair value and its price relative to the market?
43.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RCI.B (CA$58.4) is trading below our estimate of fair value (CA$103.8)
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 poor value based on its PE Ratio (17.5x) compared to the XN Wireless Telecom industry average (15.7x).
PE vs Market: RCI.B is poor value based on its PE Ratio (17.5x) compared to the Canadian market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: RCI.B is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: RCI.B is overvalued based on its PB Ratio (3x) compared to the XN Wireless Telecom industry average (2.7x).
Next Steps
Future Growth
How is Rogers Communications forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
15.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCI.B's forecast earnings growth (15% per year) is above the savings rate (1.7%).
Earnings vs Market: RCI.B's earnings (15% per year) are forecast to grow slower than the Canadian market (22.6% per year).
High Growth Earnings: RCI.B's earnings are forecast to grow, but not significantly.
Revenue vs Market: RCI.B's revenue (4.4% per year) is forecast to grow slower than the Canadian market (5.8% per year).
High Growth Revenue: RCI.B's revenue (4.4% 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 (16.7%).
Next Steps
Past Performance
How has Rogers Communications performed over the past 5 years?
11.8%
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 (11.4%) are lower than last year (13.8%).
Past Earnings Growth Analysis
Earnings Trend: RCI.B's earnings have grown by 11.8% 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 (-22.4%) over the past year, making it difficult to compare to the Wireless Telecom industry average (6%).
Return on Equity
High ROE: RCI.B's Return on Equity (16.1%) is considered low.
Next Steps
Financial Health
How is Rogers Communications's financial position?
Financial Position Analysis
Short Term Liabilities: RCI.B's short term assets (CA$6.5B) exceed its short term liabilities (CA$6.0B).
Long Term Liabilities: RCI.B's short term assets (CA$6.5B) do not cover its long term liabilities (CA$23.0B).
Debt to Equity History and Analysis
Debt Level: RCI.B's debt to equity ratio (196.6%) is considered high.
Reducing Debt: RCI.B's debt to equity ratio has reduced from 302.2% to 196.6% over the past 5 years.
Debt Coverage: RCI.B's debt is well covered by operating cash flow (23%).
Interest Coverage: RCI.B's interest payments on its debt are well covered by EBIT (4x coverage).
Balance Sheet
Next Steps
Dividend
What is Rogers Communications's current dividend yield, its reliability and sustainability?
3.42%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RCI.B's dividend (3.42%) is higher than the bottom 25% of dividend payers in the Canadian market (1.69%).
High Dividend: RCI.B's dividend (3.42%) is low compared to the top 25% of dividend payers in the Canadian market (5.83%).
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 (60%), 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 covered by earnings (52% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Joe Natale (56 yo)
3.5yrs
Tenure
CA$11,703,950
Compensation
Mr. Joseph M. Natale, also known as Joe, is a Co-Founder and Managing Partner of Relay Ventures. Mr. Natale has been Chief Executive Officer, President and Director at Rogers Communications Inc. since Apri ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD8.92M) is about average for companies of similar size in the Canadian market ($USD7.07M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.5yrs | CA$11.70m | 0.00030% CA$ 79.9k | |
| Chief Financial Officer | 8.5yrs | CA$4.88m | 0.000040% CA$ 10.7k | |
| President of Rogers for Business | 3.08yrs | CA$3.41m | 0.00018% CA$ 47.9k | |
| President of Wireless Division | 2.33yrs | CA$3.53m | 0.000020% CA$ 5.3k | |
| President of Sports & Media Divisions | 1.08yrs | CA$4.52m | no data | |
| Senior Vice President of Corporate Finance | no data | no data | no data | |
| Chief Technology & Information Officer | 2.67yrs | CA$5.42m | 0.00017% CA$ 45.3k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Legal & Regulatory Officer and Secretary | 2.33yrs | no data | no data | |
| Chief Communications Officer | 0.67yr | no data | no data | |
| Chief Human Resources Officer | 9.17yrs | CA$2.64m | 0.00041% CA$ 109.2k | |
| Chief Digital Officer | 3.33yrs | no data | 0.00034% CA$ 90.5k |
2.9yrs
Average Tenure
Experienced Management: RCI.B's management team is considered experienced (2.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.5yrs | CA$11.70m | 0.00030% CA$ 79.9k | |
| Non-Executive Vice Chair | 29.75yrs | CA$929.07k | 0.076% CA$ 20.1m | |
| Non-Independent Director | 14.75yrs | CA$303.61k | 0.27% CA$ 71.6m | |
| Independent Director | 29.5yrs | CA$262.85k | 0.015% CA$ 4.1m | |
| Independent Director | 8.5yrs | CA$201.64k | 0.00086% CA$ 229.0k | |
| Non-Independent Director | 40.83yrs | CA$258.36k | 0.0092% CA$ 2.5m | |
| Non-Independent Deputy Chair | 2.75yrs | CA$527.04k | 0.12% CA$ 32.4m | |
| Independent Director | 12.5yrs | CA$284.46k | no data | |
| Non-Independent Director | 11.83yrs | CA$258.59k | 0.22% CA$ 58.7m | |
| Non-Independent Chair of the Board | 2.75yrs | CA$1.08m | 0.36% CA$ 96.1m | |
| Independent Lead Director | 2.5yrs | CA$385.42k | 0.0018% CA$ 482.0k | |
| Independent Director | 5.5yrs | CA$271.79k | 0.0023% CA$ 617.8k |
10.2yrs
Average Tenure
66.5yo
Average Age
Experienced Board: RCI.B's board of directors are seasoned and experienced ( 10.2 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$26.627b
- 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 company offers mobile Internet access, wireless voic ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/23 00:33 |
| End of Day Share Price | 2020/10/22 00:00 |
| Earnings | 2020/09/30 |
| 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.