Rogers Communications Inc. (RCI-B:CA:TSX) Analysts rate with a Strong Buy

STA Research
by: STA Research
Rogers Communications stock

Today, Morningstar maintained their Hold rating  and reiterated the 12 month target of $68 per share for the company.

The average analyst target price for Rogers Communication Inc. stock over the next 12 months is CAD 73.10, based on 9 analyst estimates. The average analyst recommendation for Rogers Communications Inc. is Strong Buy. Rogers Communications Inc.’s stock analysis by Stock Target Advisor is Slightly Bearish, with 5 good signs and 10 negative signals. The stock price of Rogers Communications Inc. was CAD 73.89 at the latest close. The stock price of Rogers Communications Inc. has changed by 1.68 percent in the last week, 5.28 percent in the last month, and 21.85 percent in the last year.

In Canada, Rogers Communications Inc. is a communications and media firm. Wireless, Cable, and Media are the three segments through which it operates. The firm also owns the Toronto Blue Jays and the Rogers Centre event venue, as well as the television networks Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI, FX (Canada), FXX (Canada), and OLN, and 55 AM and FM radio stations. The company was established in 1960 and is based in Toronto, Ontario, Canada.

 

What we like:

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Rogers Communication Inc. stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

 

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

Rogers Communication Inc. stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

Rogers Communication Inc. stock is trading high compared to its peers median on a price to book value basis.

Overpriced on a cash flow basis

Rogers Communication Inc. stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

Rogers Communication Inc. stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Revenue Growth

Rogers Communication Inc. stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

Leave a Reply

Your email address will not be published.