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Rogers vs Telus

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Submitted By arunkumard
Words 8711
Pages 35
November 27, 2014

MBA 607 TERM PROJECT
FOR PROFESSOR TOMEK KOPCZYNSKI

FINANCIAL STATEMENT ANALYSIS AND INVESTMENT RECOMMENDATION FOR:

ROGERS COMMUNICATION INC
AND

TELUS CORPORATION

Group 6 El Nasser Imam Amin

Arun Kumar Durairaj Vinay Paramanand

Ali Movahedin Yasir Siddiqui

EXECUTIVE SUMMARY

The Canadian telecommunications industry is attractive to investors because wireless, internet and telecommunication services are an integral part of the Canadian economy. Rogers Communications Inc. and TELUS Corporation are two of the five major players in this industry.

Following the recession, TELUS has focused on key strategic markets, acquisitions and diversifications to achieve growth in revenues. Since 2009, TELUS Corporation has not only provided high returns to its shareholders but the firm have also solidified its position as the growth leader by achieving a significant increase in its market capitalization.

TELUS has demonstrated great maturity in managing its operational activities such as net income and free cash flow, investing activities such as effective asset deployment and long-term investment, and financing activities such as long-term borrowings and stock split.

In this report, we will analyze Rogers and TELUS using the following five considerations:      How well are the companies performing overall? How well do the companies manage short-term and long-term borrowings? How effective are the companies with long-term borrowings and asset deployment? How well do the companies manage cash, receivables, expenses and profitability? How well do the companies reward their shareholders?

Based on our analysis, we are confident that TELUS will continue to grow and deliver on its higher Price per Earning multiple. Therefore, our recommendation is to HOLD any shares of the Rogers Communication Inc. currently held and to BUY

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