TSX:RCI.B

Stock Analysis Report

Rogers Communications

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven track record.


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


Market Performance


7 Day Return

-1.9%

TSX:RCI.B

-0.2%

CA Wireless Telecom

-0.6%

CA Market


1 Year Return

-3.2%

TSX:RCI.B

5.4%

CA Wireless Telecom

-4.9%

CA Market

RCI.B underperformed the Wireless Telecom industry which returned 6.2% over the past year.

RCI.B outperformed the Market in Canada which returned -4.8% over the past year.


Share holder returns

RCI.BIndustryMarket
7 Day-1.9%-0.2%-0.6%
30 Day-3.7%-4.1%-2.6%
90 Day-4.8%-2.6%-2.0%
1 Year-0.5%-3.2%6.8%5.4%-1.5%-4.9%
3 Year29.4%17.9%31.8%25.3%14.0%3.9%
5 Year81.1%52.0%41.2%25.3%12.3%-3.5%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Rogers Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).

Rogers Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Rogers Communications is good value based on earnings compared to the North America Wireless Telecom industry average.

Rogers Communications is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Rogers Communications is poor value based on expected growth next year.


Price Based on Value of Assets

Rogers Communications is overvalued based on assets compared to the North America Wireless Telecom industry average.


Next Steps

Future Growth

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

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rogers Communications's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

Rogers Communications's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Rogers Communications's revenue growth is positive but not above the Canada market average.

Rogers Communications's earnings growth is positive but not above the Canada market average.

Rogers Communications's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Rogers Communications is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Rogers Communications performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rogers Communications's year on year earnings growth rate has been positive over the past 5 years.

Rogers Communications's 1-year earnings growth is less than its 5-year average (5.5% vs 10.6%)

Rogers Communications's earnings growth has exceeded the North America Wireless Telecom industry average in the past year (5.5% vs -3.7%).


Return on Equity

Whilst Rogers Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Rogers Communications used its assets more efficiently than the North America Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Rogers Communications has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Rogers Communications's financial position?


Financial Position Analysis

Rogers Communications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Rogers Communications's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Rogers Communications's level of debt (205.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (293.4% vs 205.9% today).

Debt is well covered by operating cash flow (24.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

3.07%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Rogers Communications before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Rogers Communications's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2%).

Rogers Communications's dividend is below the markets top 25% of dividend payers in Canada (5.88%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).


Next Steps

Management

What is the CEO of Rogers Communications's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Joe Natale (55yo)

2.3yrs

Tenure

CA$11,549,593

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

Joe's remuneration is about average for companies of similar size in Canada.

Joe's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.1yrs

Average Tenure

The tenure for the Rogers Communications management team is about average.


Board Age and Tenure

11.0yrs

Average Tenure

61yo

Average Age

The average tenure for the Rogers Communications board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Rogers Communications individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$39,46801 Aug 19
Anthony Staffieri
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares574
Max PriceCA$68.76
BuyCA$7,499,99903 Jul 19
Rogers Enterprises, Inc.
EntityCompany
Shares106,990
Max PriceCA$70.10
SellCA$24,48124 Jun 19
Philip Hartling
EntityIndividual
Shares351
Max PriceCA$69.75
BuyCA$20,078,03229 Apr 19
Edward Rogers
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares297,000
Max PriceCA$67.60
SellCA$28,09228 Mar 19
Philip Hartling
EntityIndividual
Shares400
Max PriceCA$70.23
BuyCA$95,000,01022 Feb 19
Rogers Enterprises, Inc.
EntityCompany
Shares1,301,370
Max PriceCA$73.00
SellCA$20,000,02922 Feb 19
The Rogers Foundation, Endowment Arm
EntityCompany
Shares273,973
Max PriceCA$73.00
SellCA$95,000,01022 Feb 19
Rogers Enterprises, Inc.
EntityCompany
Shares1,301,370
Max PriceCA$73.00
SellCA$1,423,557,44722 Feb 19
Rogers Control Trust
EntityCompany
Shares19,500,787
Max PriceCA$73.00
BuyCA$1,518,557,45722 Feb 19
Rogers Control Trust
EntityCompany
Shares20,802,157
Max PriceCA$73.00
BuyCA$21,000,00011 Dec 18
Rogers Control Trust
EntityCompany
Shares294,861
Max PriceCA$71.22
BuyCA$21,000,00011 Dec 18
Rogers Enterprises, Inc.
EntityCompany
Shares294,861
Max PriceCA$71.22
SellCA$21,000,00011 Dec 18
Rogers Enterprises, Inc.
EntityCompany
Shares294,861
Max PriceCA$71.22
SellCA$7,500,06604 Dec 18
Rogers Enterprises, Inc.
EntityCompany
Shares106,128
Max PriceCA$70.67
BuyCA$7,500,06604 Dec 18
Rogers Control Trust
EntityCompany
Shares106,128
Max PriceCA$70.67
BuyCA$7,500,06604 Dec 18
Rogers Enterprises, Inc.
EntityCompany
Shares106,128
Max PriceCA$70.67
SellCA$94,21230 Oct 18
Anthony Staffieri
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,421
Max PriceCA$66.30

Ownership Breakdown


Management Team

  • Graeme McPhail

    Chief Legal & Regulatory Officer and Secretary

    • Tenure: 1.6yrs
  • Dean Prevost

    President of Rogers for Business

    • Tenure: 1.9yrs
    • Compensation: CA$3.14m
  • Jim Reid

    Chief Human Resources Officer

    • Tenure: 8.0yrs
    • Compensation: CA$2.64m
  • Joe Natale (55yo)

    President

    • Tenure: 2.3yrs
    • Compensation: CA$11.55m
  • Terrie Tweddle

    Senior Vice President of Communications & Social Media

    • Tenure: 5.3yrs
  • Jorge Fernandes

    Chief Technology & Information Officer

    • Tenure: 1.5yrs
    • Compensation: CA$5.42m
  • Tony Staffieri

    Chief Financial Officer

    • Tenure: 7.3yrs
    • Compensation: CA$4.78m
  • Brent Johnston

    President of Wireless Division

    • Tenure: 1.2yrs
    • Compensation: CA$7.54m
  • Glenn Brandt

    Senior Vice President of Corporate Finance

    • Tenure: 0.0yrs
  • Paul Carpino

    Vice President of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Phil Lind (75yo)

    Vice Chairman of the Board

    • Tenure: 28.6yrs
    • Compensation: CA$950.00k
  • Alan Horn (67yo)

    Director

    • Tenure: 13.6yrs
    • Compensation: CA$252.75k
  • David Peterson (75yo)

    Independent Director

    • Tenure: 28.3yrs
    • Compensation: CA$478.50k
  • Loretta Rogers (79yo)

    Director

    • Tenure: 39.7yrs
    • Compensation: CA$225.00k
  • Melinda Rogers (48yo)

    Deputy Chair

    • Tenure: 1.6yrs
    • Compensation: CA$501.73k
  • Joe Natale (55yo)

    President

    • Tenure: 2.3yrs
    • Compensation: CA$11.55m
  • Isabelle Marcoux (49yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: CA$511.25k
  • Martha Rogers (46yo)

    Director

    • Tenure: 10.7yrs
    • Compensation: CA$225.00k
  • Edward Rogers (49yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: CA$1.00m
  • John Clappison (72yo)

    Lead Director

    • Tenure: 1.3yrs
    • Compensation: CA$352.38k

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$34.316b
  • Shares outstanding: 511.91m
  • 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 Wireless segment offers wireless voice and data comm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:47
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.