Rogers Communications

The business

Rogers is a national wireless, cable/internet and media operator; the 2023 Shaw acquisition made it the clear #2 (arguably #1 in wireless subs) in Canada.

Wireless and cable connectivity drive the bulk of EBITDA; Rogers Sports & Media (Sportsnet, Blue Jays, MLSE stake) is a differentiated content arm.

Strategy is centred on integrating Shaw, capturing synergies, and paying down acquisition debt.

The moat

Massive spectrum and network scale plus the Shaw cable footprint in Western Canada give durable infrastructure advantages.

Three-player wireless structure supports pricing discipline relative to global peers.

Unique sports/content assets (MLSE, Blue Jays, Sportsnet) create bundling and advertising optionality competitors can't replicate.

Financial snapshot

Most recent reported period : Q2 FY2026 (ended Jun 30, 2026). Figures reflect the review date — confirm current numbers before acting.

Free cash flow yield & sustainable growth

Free cash flow yield : ≈10.2%TTM free cash flow of C$2.62B against a C$25.8B market cap ≈ 10.2%. FCF grew ~27% YoY, so unlike peers the yield sits on a rising denominator.

Unlike BCE, Rogers is growing FCF (+27% YoY TTM) as Shaw synergies land and integration capex peaks.

Service revenue +8% in Q2 shows the combined base is still expanding.

Sustainable growth hinges on continued synergy capture and turning EBITDA growth into deleveraging rather than new spending.

See the full free-cash-flow yield ranking →

Valuation & what to watch

The ~4.2x reported P/E is distorted by large non-recurring gains in TTM net income — treat it as noise, not signal.

On cash, Rogers screens at roughly a 10.2% FCF yield (C$2.62B / C$25.8B), among the highest in Canadian telecom, with FCF actually rising ~27% YoY.

The market discount reflects post-Shaw leverage; if deleveraging proceeds, the equity has room to re-rate.

Dividend

The dividend has been frozen at C$2.00/yr (yield ~4.2%) to prioritize debt reduction after the Shaw deal — a deliberate, defensible choice. It's well covered by rising FCF, and a resumption of growth is the natural upside catalyst once leverage normalizes.

Risks & the bear case

• Elevated post-Shaw leverage in a higher-rate world is the central risk.
• Wireless price competition and slowing population growth pressure ARPU.
• Sports/media asset values and any large capital returns to buy out minority stakes (e.g., MLSE) could complicate the deleveraging path; controlled-company governance (Rogers family) limits minority influence.

Recent developments

Q2 FY2026: +8% service revenue and +3% adjusted EBITDA growth; TTM revenue +8.7%.

TTM FCF up ~27% YoY to C$2.62B as integration matures.

Consensus remains constructive on the deleveraging trajectory; dividend held flat.

Verdict

Rogers is the higher-beta deleveraging play in Canadian telecom: a scaled, growing FCF base (+27% YoY) offset by heavy Shaw-deal debt and a frozen dividend. The ~10% FCF yield is genuinely attractive and, unlike BCE, is backed by rising rather than falling cash generation. The bet is on management converting EBITDA growth into balance-sheet repair; leverage and family-controlled governance are the reasons it stays cheap. Publisher, not an adviser.