Rogers Communications Inc. (RCI-B.TO) stock analysis

In our weekly check, Rogers Communications Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 7, red flags: 5.

About Rogers Communications Inc.

Rogers Communications Inc. is a Communication Services company (Telecommunications Services) based in Canada, listed on TSX as RCI-B.TO.

What our checks show for RCI-B.TO

Red flags

• Net debt is 4.8x a year of EBITDA (debt/equity 2.82). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 6.5 points over 5 years, to 4.1%: the company keeps less of each sale as profit.
• The gross margin fell by 17.3 points, to 22.9%: costs are rising faster than prices.
• The net margin is only 4.1%: little room if costs rise.
• The dividend takes 129% of profit: little cushion if profit falls.

Warning signs

• Operating profit covers interest only 2.3 times: a weak year could make the payments hard.
• Analysts expect only about 0.7% a year of growth in revenue.
• Earnings per share fell 19.5% a year over the last 3 years.
• Net profit fell 17.7% a year over the last 3 years.
• The stock has fallen as much as 57% from a peak. Would you have held through that?
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 6.9%.

Strengths

• Operating cash flow is 6.8x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 59.6% a year over the next years.
• Analysts expect the net margin to improve by 7.5 points from today's 4.1%.
• Free cash flow is 15% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $17.59 billion.
• Actively traded: about 2.3 million shares a day.

Similar companies

VIV · ASTS · BCE · ECHO · CHTR · TU

Questions

What grade does Rogers Communications Inc. (RCI-B.TO) have?

In our weekly check, Rogers Communications Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 7, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RCI-B.TO stock?

This week's biggest flags for Rogers Communications Inc.: High debt, Margins falling, Gross margin falling. In total 12 of 25 checks show a warning or a red flag.

What does Rogers Communications Inc. do?

Rogers Communications Inc. is a Communication Services company (Telecommunications Services) based in Canada, listed on TSX as RCI-B.TO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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