
TSE:RCI.B
This summary was created by AI, based on 28 opinions in the last 12 months.
Rogers Communications (RCI.B) presents a mixed outlook among analysts, with the consensus indicating a belief in the sustainability of its dividend, supported by a relatively low payout ratio compared to peers. However, there are several challenges, including high debt levels of approximately $40 billion, intense competition within the telecom sector, and a mature business model that demands significant capital expenditures. The performance of Rogers’ sports assets has become a focal point, with analysts debating their future monetization potential. While some experts express bearish sentiments due to weak immigration and price pressures, others appreciate the company's hidden value and the recent strategies to reduce capex and improve free cash flow. The general sentiment reflects a cautious optimism, mostly aiming for defensive positioning in a challenging industry environment.
Telecoms? Rogers is an interesting name. He owns BCE instead. A push for lower cell phone rates along with greater investment in 5G networks are key headwinds in this sector. Telcoms will face a lot spending to build up 5G, which will impact the financials for the next few years. He likes the dividend they pay, however. If your time horizon is long, then holding is fine.
BCE-T vs. RCI.B-T. BCE-T is considered the steadiest and safest of the three. It has run up quite a bit in the last year as a flight to safety. RCI.B-T has come off a bit after offering their unlimited data plan which was a bigger success than they anticipated. He would buy RCI.B-T. A year from now they won't have any issues with unlimited data.
Sell Rogers to buy WSP? They're completely different companies and sectors. WSP grows by acquisition. Rogers isn't allocating capital wealth well , which has driven their valuation to an 8-year low. Conversely, this makes Rogers attractive. It's probably oversold. Don't sell. WSP: the valuation is too high as they've bought three companies recently, so he won't buy it now.