Rogers Comm Cl A (RCI.A) AI Stock Analysis

• Market Cap: C$22.30B
• Dividend Yield: 4.37%
• Average Volume (3M): 2.40K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.80
• Revenue Growth: 6.71%
• EPS Growth: 96.65%
• Country: CA
• Employees: 26,000
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications
• EPS (TTM): 3.25
• Shares Outstanding: 111,152,010
• 10 Day Avg. Volume: 2,253
• 30 Day Avg. Volume: 2,399
• PEG Ratio: 0.15
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.19
• Price to Cash Flow (P/CF): 3.20
• P/FCF Ratio: 4.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$53.43
• Price Target Upside: 16.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Rogers Communications demonstrates strong financial performance with substantial revenue growth and efficient cash flow management. Technical indicators show some positive momentum in the short term, though long-term resistance is present. The reasonable valuation with a solid dividend yield supports the stock's attractiveness. High leverage remains a risk factor, but strategic corporate actions suggest a continued growth trajectory.

Rogers Comm Cl A Business Overview & Revenue Model

Company Description

Rogers Communications Inc. (RCI.A) is a leading Canadian telecommunications and media company headquartered in Toronto, Ontario. The company operates primarily in three segments: Wireless, Cable, and Media. It provides a wide range of services, including wireless voice and data communications, internet, cable television, and telephony services. Additionally, Rogers owns a portfolio of media assets, including radio and television broadcasting, sports entertainment, and digital media properties, contributing to its diversified operations in the Canadian market.

How the Company Makes Money

Rogers Communications Inc. generates revenue through multiple streams across its three main business segments. The Wireless segment, being one of the largest contributors, earns money from providing mobile voice and data services to both consumers and businesses, with revenue coming from service fees, equipment sales, and roaming charges. The Cable segment derives income from offering broadband internet, television, and home phone services, with subscription fees being a primary revenue source. In the Media segment, Rogers makes money through advertising sales, subscription fees for its digital and streaming platforms, and revenues from sports events and content distribution, leveraging its ownership of media properties and partnerships. Additionally, strategic partnerships and investments in technology and infrastructure enhance its service offerings and operational efficiency, further boosting its revenue potential.

Rogers Comm Cl A Financial Statement Overview

Summary

Rogers Communications demonstrates strong financial performance with significant revenue growth and efficient cash flow management. However, the high leverage ratio poses potential risks. Overall, the financial health is solid, with opportunities for continued growth.

Income Statement

Rogers Communications has shown a strong revenue growth trend, increasing from $19.31 billion in 2023 to $20.60 billion in 2024, marking a 6.87% growth rate. The gross profit margin improved to 46.68% in 2024 from 44.44% in 2023. The EBITDA margin is high at 44.20%, indicating efficient operational performance. However, the absence of EBIT in 2024 slightly affects the overall profitability analysis.

Balance Sheet

The company maintains a high debt-to-equity ratio of 4.58 in 2024, which is a potential risk factor, though common in the telecommunications industry due to capital-intensive operations. The return on equity (ROE) is relatively stable at 16.67%, and the equity ratio stands at 14.57%, suggesting a moderate level of equity financing. Overall, the balance sheet reflects both leverage risk and stable equity returns.

Cash Flow

Rogers Communications exhibits strong free cash flow generation with a growth rate of 36.50% from 2023 to 2024. The operating cash flow to net income ratio is favorable at 3.27, indicating robust cash-generating capacity relative to net income. The free cash flow to net income ratio of 0.87 demonstrates a healthy conversion of profits into free cash flow, supporting future operations and investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
20.60B	19.31B	15.40B	14.65B	13.92B
	Gross Profit
9.62B	8.58B	6.39B	5.89B	5.86B
	EBIT
0.00	4.46B	3.77B	3.23B	3.21B
	EBITDA
9.11B	7.61B	6.19B	5.66B	5.76B
	Net Income Common Stockholders
1.73B	849.00M	1.68B	1.56B	1.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
898.00M	800.00M	463.00M	715.00M	2.48B
	Total Assets
71.41B	69.28B	55.66B	41.96B	38.85B
	Total Debt
47.63B	45.20B	36.75B	22.84B	21.26B
	Net Debt
46.73B	44.40B	36.28B	22.13B	18.77B
	Total Liabilities
61.01B	58.84B	45.56B	31.43B	29.28B
	Stockholders Equity
10.40B	10.44B	10.09B	10.53B	9.57B
Cash Flow		Free Cash Flow
1.51B	1.10B	1.37B	1.32B	1.95B
	Operating Cash Flow
5.68B	5.22B	4.49B	4.16B	4.32B
	Investing Cash Flow
-4.46B	-20.20B	-3.26B	-6.13B	-2.56B
	Financing Cash Flow
-1.13B	2.48B	11.36B	203.00M	227.00M

Rogers Comm Cl A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCI.A, the sentiment is Positive. The current price of 45.75 is above the 20-day moving average (MA) of 43.94, above the 50-day MA of 44.99, and below the 200-day MA of 51.75, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 62.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RCI.A.

Rogers Comm Cl A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.B	79 Outperform	$8.45B	11.19	38.85%	3.78%	3.76%	14.27%
CCA	77 Outperform	$2.81B	8.12	11.48%	5.50%	-0.07%	-1.48%
T	76 Outperform	$35.12B	34.05	6.26%	7.19%	0.67%	15.00%
RCI.B	75 Outperform	$22.30B	12.57	16.66%	5.14%	6.71%	96.65%
RCI.A	73 Outperform	C$22.30B	14.09	16.64%	4.37%	6.71%	96.65%
Sector *	59 Neutral	$30.54B	0.25	-13.23%	4.04%	2.36%	-49.53%
BCE	56 Neutral	$33.16B	197.83	1.53%	11.75%	-0.73%	-96.22%

Rogers Comm Cl A Corporate Events

Rogers Communications Prices $3.1 Billion in Subordinated Notes

Rogers Communications Inc. announced the pricing of a public offering of US$2.1 billion in fixed-to-fixed rate subordinated notes and a Canadian private placement of Cdn$1.0 billion. The proceeds from these offerings will be used to repay outstanding debt and partially fund the acquisition of BCE Inc.’s stake in Maple Leaf Sports & Entertainment Inc., a move that could strengthen Rogers’ strategic positioning and enhance its portfolio.

Rogers Communications Achieves Record Revenue in 2024, Sets 2025 Growth Outlook

Rogers Communications reported strong financial performance for 2024 with over $20 billion in annual revenue, driven by significant growth in wireless and internet services. The company led Canadian carriers in mobile and internet net additions, reflecting robust market demand despite competitive pressures. The year concluded with a third consecutive period of industry-leading performance, marked by a 7% increase in service revenue and 12% growth in adjusted EBITDA. Looking ahead to 2025, Rogers anticipates continued growth and expansion efforts, with strategic investments in their network and technology partnerships to enhance resilience and service quality.

Rogers Communications Declares Quarterly Dividend with Reinvestment Option

Rogers Communications announced a quarterly dividend of 50 cents per share for its Class A and Class B shares, payable on April 2, 2025, to shareholders of record as of March 10, 2025. Shareholders can opt to reinvest dividends in additional Class B shares, which will be issued at a 2% discount from the average market price under the company’s Dividend Reinvestment Plan, potentially enhancing shareholder value and encouraging long-term investment.

Rogers Gains Clearance to Acquire Bell’s MLSE Stake

Rogers Communications has received clearance from the Competition Bureau to proceed with acquiring Bell’s 37.5% stake in Maple Leaf Sports & Entertainment, marking a significant step towards becoming the majority owner. The deal still requires league and CRTC approvals, but it aligns with Rogers’ strategy to expand its presence in live sports and entertainment. This acquisition is valued at C$4.7 billion, highlighting Rogers’ commitment to strengthening its core business offerings.