RCI
Rogers Communications (NYSE: RCI) reported higher service revenue, higher adjusted EBITDA, and improved...
Article Summary
BUY- Rogers Communications (NYSE: RCI) reported higher service revenue, higher adjusted EBITDA, and improved free cash flow as profitability improved, driven by higher mobile and cable service revenue and margin expansion.
- Free cash flow increased 6% and capital intensity dropped to its lowest level since the first quarter of 2008, supported by lower capital intensity.
- Rogers Communications added 40,000 mobile phone net additions, including 22,000 postpaid additions, with postpaid mobile phone churn of 0.94% and mobile phone average revenue per user of C$54.25.
- Sports and media revenue grew 53% year-over-year, with organic revenue excluding the impact of MLSE rising 13%, and adjusted EbitDA for the segment improved by C$61 million to C$69 million.
- Rogers reaffirmed its 2026 outlook for total service revenue growth of 3% to 5%, adjusted EBTDA growth of 1% to 3%, capital expenditures of $2.5-$2.7 billion, and free-cash-flow growth of $4.1-$4.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 8.1% | 25% | 35.0 ptsBelow Screener (8.1%) - Weak growth |
| EPS Growth Next 5Y ? | -0.1% | 25% | 0.0 ptsNegative (-0.1%) - Declining expectations |
| Target Price Upside ? | 28.3% | 20% | 75.0 ptsSignificant Upside (28.3%) - Target: $42.29 vs Current: $32.95 |
| Gross Margin % ? | 22.8% | 15% | 40.0 ptsModerate (22.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -19.9% | 15% | 40.0 ptsMild Pullback (-19.9%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About RCI
- Rogers Communications Inc. operates as a communications, sports, and entertainment company in Canada.
- It operates through Wireless, Cable, and Media segments.
- The company offers mobile internet access, wireless voice and enhanced voice, device financing, device protection, global voice and data roaming, wireless home phone, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device shipping and pickup services; satellite-to-mobile service; and wireless solutions under the Rogers, Fido, and chatr brands.
- It also provides Internet access, Internet protocol-based (IP) television, applications, online viewing, phone, home monitoring, and advanced home WiFi services to consumer and businesses.
- In addition, the company offers local and network TV; on-demand television; cloud-based digital video recorders; voice-activated remote controls, restart, and integrated apps; linear and time-shifted programming; digital specialty channels; and 4K television programming.
- Further, it provides residential and small business local telephony services; voicemail, call waiting, and long distance; video and audio programming; voice, data networking, IP, and Ethernet services; private networking, Internet, IP voice, and cloud solutions; optical wave and multi-protocol label switching services; information technology and network technologies; cable access network services; telecommunications technical consulting services; and season games through television, smartphones, tablets, personal computers, and other streaming devices.
- Additionally, the company owns Toronto Blue Jays and the Rogers Centre event venue; and operates Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI, FX (Canada), FXX (Canada), and HGTV television networks, as well as AM and FM radio stations.
- It also offers Rogers and the Rogers Red World Elite Mastercard.
- The company was founded in 1960 and is headquartered in Toronto, Canada.