Rogers Communications Inc (NYSE: RCI)

Sector: Communication Services Industry: Telecom Services CIK: 0000733099
Market Cap 20.84 Bn
P/B 1.61
P/E 4.13
P/S 1.32
ROIC (Qtr) 7.55
Div Yield % 0.00
Rev 1y % (Qtr) 18.36
Total Debt (Qtr) 32.25 Bn
Debt/Equity (Qtr) 2.49
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About

Investment thesis

Bull case

  • Tangible assets of 29.99B provide exceptional 36.88x coverage of deferred revenue 813.14M, showing strong service capability backing.
  • Operating cash flow of 4.42B provides strong 5.44x coverage of deferred revenue 813.14M, indicating service delivery capability.
  • Operating cash flow of 4.42B provides strong 11.02x coverage of inventory 401.46M, indicating efficient inventory management.
  • Tangible assets of 29.99B provide robust 8.31x coverage of other current liabilities 3.61B, indicating strong asset backing.
  • Cash position of 981.02M provides strong 1.21x coverage of deferred revenue 813.14M, ensuring service delivery capability.

Bear case

  • Operating cash flow of 4.42B barely covers its investment activities of (5.99B), with a coverage ratio of -0.74, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 4.42B provides thin coverage of dividend payments of (666.42M) with a -6.64 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 981.02M provide limited coverage of acquisition spending of (3.28B), which is -0.30x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 4.46B relative to inventory of 401.46M (11.10 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 7.07B show weak coverage of depreciation charges of 3.51B, with a 2.02 ratio indicating high capital intensity and potential reinvestment needs.

Products and services [axis] Breakdown of Revenue (2024)

Segments [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Telecom Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMUS T-Mobile US, Inc. 247.58 Bn 22.52 2.80 118.74 Bn
2 T At&T Inc. 210.50 Bn 12.86 1.15 155.04 Bn
3 VZ Verizon Communications Inc 202.20 Bn 11.00 1.54 181.64 Bn
4 CMCSA Comcast Corp 180.83 Bn 58.43 5.08 98.94 Bn
5 VOD Vodafone Group Public Ltd Co 44.88 Bn 3.20 0.62 60.54 Bn
6 CHT Chunghwa Telecom Co Ltd 33.41 Bn 26.87 4.32 1.20 Bn
7 SATS EchoStar CORP 32.60 Bn -2.52 2.15 30.58 Bn
8 CHTR Charter Communications, Inc. /Mo/ 32.03 Bn 6.42 0.58 96.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.58 0.87
EV to Cash from Ops. EV/CFO 8.59 7.73
EV to Debt EV to Debt 1.18 40.31
EV to EBIT EV/EBIT 5.38 2.24
EV to EBITDA EV/EBITDA 5.55 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF 22.13 33.34
EV to Market Cap EV to Market Cap 1.82 1.71
EV to Revenue EV/Rev 2.40 5.12
Price to Book Value [P/B] P/B 1.61 2.16
Price to Earnings [P/E] P/E 4.13 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 5.53 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.79
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.04
Interest Coverage Int. cover (Qtr) 4.74 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 3.58 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 57.31 61.85
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 166.39 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 7.05 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) 121.16 814.56
EBT Growth (1y) % EBT 1y % (Qtr) 248.15 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) 313.00 141.81
FCF Growth (1y) % FCF 1y % (Qtr) 50.83 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.76 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.18 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.09 0.06
Cash Ratio Cash Ratio (Qtr) 0.09 0.68
Current Ratio Curr Ratio (Qtr) 0.61 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 2.49 -0.46
Interest Cover Ratio Int Coverage (Qtr) 4.74 -2.53
Times Interest Earned Times Interest Earned (Qtr) 4.74 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 66.70 46.49
EBIT Margin % EBIT Margin % (Qtr) 61.09 -51.60
EBT Margin % EBT Margin % (Qtr) 35.18 27.73
Gross Margin % Gross Margin % (Qtr) 100.00 55.49
Net Profit Margin % Net Margin % (Qtr) 31.90 26.33