TSX:RCI.B

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Rogers Communications

Executive Summary

Rogers Communications Inc. operates as a communications and media company in Canada. More Details


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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RCI.B's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

RCI.B

1.5%

CA Wireless Telecom

0.3%

CA Market


1 Year Return

-4.5%

RCI.B

45.9%

CA Wireless Telecom

1.8%

CA Market

Return vs Industry: RCI.B underperformed the Canadian Wireless Telecom industry which returned 45.6% over the past year.

Return vs Market: RCI.B underperformed the Canadian Market which returned 1.3% over the past year.


Shareholder returns

RCI.BIndustryMarket
7 Day0.5%1.5%0.3%
30 Day12.5%17.2%9.7%
90 Day10.0%13.3%8.7%
1 Year-1.3%-4.5%47.1%45.9%5.5%1.8%
3 Year1.9%-7.1%66.1%60.2%13.3%2.2%
5 Year46.2%25.6%154.6%138.0%53.9%30.3%

Long-Term 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

Valuation

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$61.09) is trading below our estimate of fair value (CA$125.55)

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 (19.2x) compared to the XN Wireless Telecom industry average (30.7x).

PE vs Market: RCI.B is poor value based on its PE Ratio (19.2x) compared to the Canadian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: RCI.B is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: RCI.B is overvalued based on its PB Ratio (3.1x) compared to the XN Wireless Telecom industry average (2x).


Next Steps

Future Growth

How is Rogers Communications forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCI.B's forecast earnings growth (8.7% per year) is above the savings rate (1.7%).

Earnings vs Market: RCI.B's earnings (8.7% per year) are forecast to grow slower than the Canadian market (25.8% per year).

High Growth Earnings: RCI.B's earnings are forecast to grow, but not significantly.

Revenue vs Market: RCI.B's revenue (3.7% per year) is forecast to grow slower than the Canadian market (6.3% per year).

High Growth Revenue: RCI.B's revenue (3.7% 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 (17.1%).


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 (29.4%).


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?

3.27%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RCI.B's dividend (3.27%) is higher than the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: RCI.B's dividend (3.27%) is low compared to the top 25% of dividend payers in the Canadian market (5.31%).


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 (62.8%), 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 (50.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Joe Natale (56 yo)

3.67yrs

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 ($USD9.09M) is about average for companies of similar size in the Canadian market ($USD7.07M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Natale
President3.67yrsCA$11.70m0.00030%
CA$ 91.7k
Anthony Staffieri
Chief Financial Officer8.67yrsCA$4.88m0.000040%
CA$ 12.2k
Dean Prevost
President of Rogers for Business3.25yrsCA$3.41m0.00018%
CA$ 55.0k
Brent Johnston
President of Wireless Division2.5yrsCA$3.53m0.000020%
CA$ 6.1k
Jordan Banks
President of Sports & Media Divisions1.25yrsCA$4.52mno data
Glenn Brandt
Senior Vice President of Corporate Financeno datano datano data
Jorge Fernandes
Chief Technology & Information Officer2.83yrsCA$5.42m0.00017%
CA$ 52.0k
Paul Carpino
Vice President of Investor Relationsno datano datano data
Graeme McPhail
Chief Legal & Regulatory Officer and Secretary2.5yrsno datano data
Sevaun Palvetzian
Chief Communications Officer0.83yrno datano data
James Reid
Chief Human Resources Officer9.33yrsCA$2.64m0.00041%
CA$ 125.3k
Lisa Durocher
Chief Digital Officer3.5yrsno data0.00034%
CA$ 103.9k

3.0yrs

Average Tenure

Experienced Management: RCI.B's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Natale
President3.67yrsCA$11.70m0.00030%
CA$ 91.7k
Philip Lind
Non-Executive Vice Chair29.92yrsCA$929.07k0.076%
CA$ 23.1m
Alan Horn
Non-Independent Director14.92yrsCA$303.61k0.27%
CA$ 82.2m
David Peterson
Independent Director29.67yrsCA$262.85k0.015%
CA$ 4.7m
John MacDonald
Independent Director8.67yrsCA$201.64k0.00086%
CA$ 262.8k
Loretta Rogers
Non-Independent Director41yrsCA$258.36k0.0093%
CA$ 2.8m
Melinda Rogers
Non-Independent Deputy Chair2.92yrsCA$527.04k0.12%
CA$ 37.2m
Isabelle Marcoux
Independent Director12.67yrsCA$284.46kno data
Martha Rogers
Non-Independent Director12yrsCA$258.59k0.22%
CA$ 67.4m
Edward Rogers
Non-Independent Chair of the Board2.92yrsCA$1.08m0.36%
CA$ 110.4m
John Clappison
Independent Lead Director2.67yrsCA$385.42k0.0018%
CA$ 559.3k
Bonnie Brooks
Independent Director5.67yrsCA$271.79k0.0024%
CA$ 724.3k

10.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: RCI.B's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RCI.B insiders have only sold shares 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$30.560b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RCI.ATSX (The Toronto Stock Exchange)Class A Common SharesCACADDec 1972
RCIA.FOTCPK (Pink Sheets LLC)Class A Common SharesUSUSDDec 1972
RCINYSE (New York Stock Exchange)YesClass B Non-Voting Common SharesUSUSDNov 1979
RCI.BTSX (The Toronto Stock Exchange)YesClass B Non-Voting Common SharesCACADNov 1979
RCIBDB (Deutsche Boerse AG)YesClass B Non-Voting Common SharesDEEURNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 23:27
End of Day Share Price2020/12/03 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.