TSX:RCI.B

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Rogers Communications

Executive Summary

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


Snowflake Analysis

Established dividend payer and good 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

0.9%

RCI.B

-1.6%

CA Wireless Telecom

1.9%

CA Market


1 Year Return

-20.8%

RCI.B

8.6%

CA Wireless Telecom

-12.0%

CA Market

Return vs Industry: RCI.B underperformed the Canadian Wireless Telecom industry which returned 8.5% over the past year.

Return vs Market: RCI.B underperformed the Canadian Market which returned -13.7% over the past year.


Shareholder returns

RCI.BIndustryMarket
7 Day0.9%-1.6%1.9%
30 Day-2.7%3.4%3.5%
90 Day-12.2%-1.1%-10.5%
1 Year-18.4%-20.8%10.2%8.6%-8.9%-12.0%
3 Year-1.8%-10.2%22.7%17.2%-0.1%-9.4%
5 Year54.5%30.8%78.9%60.7%14.7%-2.4%

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$56.55) is trading below our estimate of fair value (CA$128.23)

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 (14.4x) compared to the Wireless Telecom industry average (17.9x).

PE vs Market: RCI.B is poor value based on its PE Ratio (14.4x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: RCI.B is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: RCI.B is good value based on its PB Ratio (2.8x) compared to the XN Wireless Telecom industry average (2.8x).


Next Steps

Future Growth

How is Rogers Communications forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RCI.B's forecast earnings growth (9.9% per year) is above the savings rate (1.7%).

Earnings vs Market: RCI.B's earnings (9.9% per year) are forecast to grow slower than the Canadian market (21.2% per year).

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

Revenue vs Market: RCI.B's revenue (4.2% per year) is forecast to grow slower than the Canadian market (5.6% per year).

High Growth Revenue: RCI.B's revenue (4.2% 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 (17.9%).


Next Steps

Past Performance

How has Rogers Communications performed over the past 5 years?

14.1%

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 (13.4%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: RCI.B's earnings have grown by 14.1% 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 (-1.1%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-5.2%).


Return on Equity

High ROE: RCI.B's Return on Equity (19.6%) 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$6.3B) exceed its short term liabilities (CA$5.7B).

Long Term Liabilities: RCI.B's short term assets (CA$6.3B) do not cover its long term liabilities (CA$24.1B).


Debt to Equity History and Analysis

Debt Level: RCI.B's debt to equity ratio (203.9%) is considered high.

Reducing Debt: RCI.B's debt to equity ratio has reduced from 304.3% to 203.9% over the past 5 years.

Debt Coverage: RCI.B's debt is well covered by operating cash flow (21.6%).

Interest Coverage: RCI.B's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Rogers Communications's current dividend yield, its reliability and sustainability?

3.54%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RCI.B's dividend (3.54%) is higher than the bottom 25% of dividend payers in the Canadian market (2.06%).

High Dividend: RCI.B's dividend (3.54%) is low compared to the top 25% of dividend payers in the Canadian market (6.65%).


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 (50.9%), 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 (48.9% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Joe Natale (55yo)

3.08yrs

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 ($USD8.48M) is about average for companies of similar size in the Canadian market ($USD6.71M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Natale
President3.08yrsCA$11.70m0.00030% CA$86.4k
Anthony Staffieri
Chief Financial Officer8.08yrsCA$4.88m0.000040% CA$11.5k
Dean Prevost
President of Rogers for Business2.67yrsCA$3.41m0.00018% CA$51.8k
Brent Johnston
President of Wireless Division1.92yrsCA$3.53m0.000020% CA$5.8k
Jordan Banks
President of Sports & Media Divisions0.67yrCA$4.52mno data
Glenn Brandt
Senior Vice President of Corporate Financeno datano datano data
Jorge Fernandes
Chief Technology & Information Officer2.25yrsCA$5.42m0.00017% CA$48.9k
Paul Carpino
Vice President of Investor Relationsno datano datano data
Graeme McPhail
Chief Legal & Regulatory Officer and Secretary1.92yrsno datano data
Sevaun Palvetzian
Chief Communications Officer0.25yrno datano data

2.1yrs

Average Tenure

Experienced Management: RCI.B's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Natale
President3.08yrsCA$11.70m0.00030% CA$86.4k
Philip Lind
Non-Executive Vice Chair29.33yrsCA$929.07k0.076% CA$21.7m
Alan Horn
Non-Independent Director14.33yrsCA$303.61k0.27% CA$77.4m
David Peterson
Independent Director29.08yrsCA$262.85k0.015% CA$4.4m
Loretta Rogers
Non-Independent Director40.42yrsCA$258.36k0.011% CA$3.2m
Melinda Rogers
Non-Independent Deputy Chair2.33yrsCA$527.04k0.12% CA$35.0m
Isabelle Marcoux
Independent Director12.08yrsCA$284.46kno data
Martha Rogers
Non-Independent Director11.42yrsCA$258.59k0.22% CA$63.5m
Edward Rogers
Non-Independent Chair of the Board2.33yrsCA$1.08m0.36% CA$103.9m
John Clappison
Independent Lead Director2.08yrsCA$385.42k0.0018% CA$521.0k

11.8yrs

Average Tenure

61yo

Average Age

Experienced Board: RCI.B's board of directors are seasoned and experienced ( 11.8 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$28.787b
  • 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 voice and enhanced voice features, device financing, wireless home phone, device protection, text messaging, 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 wireless services are offered under the Rogers, Fido, and chatr brands to approximately 10.8 million subscribers. It also provides Internet access 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, restart features, 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), OLN, and TSC television networks, as well as 55 AM and FM radio stations. Rogers Communications Inc. was founded in 1960 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 11:53
End of Day Share Price2020/05/26 00:00
Earnings2020/03/31
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.