STA Research maintains Rogers Communications Inc(RCI-B:TSX) with a Hold rating

STA Research
by: STA Research
rogers inc

STA Research maintains Rogers Communications Inc with a Hold rating and a target price of $56 on the company’s stock.

Based on the Rogers Communications Inc stock forecasts from 12 analysts, the average analyst target price for Rogers Communications Inc is CAD 76.52 over the next 12 months. Rogers Communications Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Rogers Communications Inc is Slightly Bearish, which is based on 5 positive signals and 8 negative signals. At the last closing, Rogers Communications Inc’s stock price was CAD 61.54Rogers Communications Inc’s stock price has changed by -0.23% over the past week, +0.41% over the past month and -7.72% over the last year.

What we like:

Superior return on equity

The company management has delivered 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 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

This 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 in 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

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

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 free cash flow basis

The 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 to buy.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

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