Stock of the Day

March 18, 2021

Rogers Communications (RCI)

$26.57
-$0.24 (-0.9%)
Market Cap: $14.28B

About Rogers Communications

Rogers Communications Inc. operates as a communications and media company in Canada. It operates through three segments: Wireless, Cable, and Media. 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 express pickup services; and postpaid and prepaid services under the Rogers, Fido, and chatr brands. It also provides internet and WiFi services; and monitoring, security, automation, energy efficiency, and smart control through smartphone app. In addition, the company offers local and network TV; on-demand television; cloud-based digital video recorders; voice-activated remote controls, and integrated apps; personal video recorders; 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; voice, data networking, Internet protocol (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, as well as operates Ignite TV and Ignite TV app. 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 OLN television networks, as well as 52 AM and FM radio stations. It also offers Rogers and the Rogers World Elite Mastercard. The company was founded in 1960 and is headquartered in Toronto, Canada.

Rogers Communications Bull Case

Here are some ways that investors could benefit from investing in Rogers Communications Inc.:

  • The company recently increased its quarterly dividend to $0.3611 per share, reflecting a commitment to returning value to shareholders and indicating financial stability.
  • Rogers Communications has a strong return on equity of 25.19%, suggesting effective management and profitability in generating returns for shareholders.
  • The stock is currently trading around $26.86, which may present a buying opportunity for investors looking for value in the telecommunications sector.
  • Analysts have a consensus target price of $67.00, indicating potential upside for investors based on current market evaluations.
  • Revenue growth of 1.5% compared to the same quarter last year shows resilience in the company's operations despite recent challenges.

Rogers Communications Bear Case

Investors should be bearish about investing in Rogers Communications Inc. for these reasons:

  • The company reported earnings per share of $0.69, missing analysts' expectations of $0.71, which may raise concerns about its short-term performance.
  • Revenue for the latest quarter was significantly below analyst estimates, coming in at $3.46 billion compared to expectations of $4.96 billion, indicating potential operational challenges.
  • Rogers Communications has a net margin of 8.40%, which may be considered low compared to industry standards, suggesting less efficiency in converting revenue into profit.
  • One research analyst has rated the stock with a sell rating, which could indicate a lack of confidence in the company's future performance.
  • Recent changes in analyst ratings, including downgrades from "sector outperform" to "sector perform," may signal caution among market experts regarding the stock's potential.
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