Shaw Communications Inc (SJR-A.CA) Stock Fundamental Analysis

Canada • TSX Venture Exchange • TSX-V:SJR-A • CA82028K1012

40.42 CAD
-0.06 (-0.15%)
Last: Apr 4, 2023, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SJR-A. SJR-A was compared to 13 industry peers in the Media industry. There are concerns on the financial health of SJR-A while its profitability can be described as average. SJR-A is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • SJR-A had positive earnings in the past year.
  • SJR-A had a positive operating cash flow in the past year.
SJR-A.CA Yearly Net Income VS EBIT VS OCF VS FCFSJR-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B

1.2 Ratios

  • SJR-A's Return On Assets of 4.68% is fine compared to the rest of the industry. SJR-A outperforms 68.42% of its industry peers.
  • SJR-A has a better Return On Equity (11.48%) than 63.16% of its industry peers.
  • SJR-A's Return On Invested Capital of 7.72% is amongst the best of the industry. SJR-A outperforms 89.47% of its industry peers.
  • SJR-A had an Average Return On Invested Capital over the past 3 years of 18.64%. This is significantly above the industry average of 9.57%.
  • The last Return On Invested Capital (7.72%) for SJR-A is well below the 3 year average (18.64%), which needs to be investigated, but indicates that SJR-A had better years and this may not be a problem.
Industry RankSector Rank
ROA 4.68%
ROE 11.48%
ROIC 7.72%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.64%
ROIC(5y)N/A
SJR-A.CA Yearly ROA, ROE, ROICSJR-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 5 10 15 20

1.3 Margins

  • SJR-A has a Profit Margin of 13.55%. This is in the better half of the industry: SJR-A outperforms 78.95% of its industry peers.
  • In the last couple of years the Profit Margin of SJR-A has declined.
  • Looking at the Operating Margin, with a value of 23.55%, SJR-A is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SJR-A has grown nicely.
  • SJR-A's Gross Margin of 46.34% is fine compared to the rest of the industry. SJR-A outperforms 68.42% of its industry peers.
  • SJR-A's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 23.55%
PM (TTM) 13.55%
GM 46.34%
OM growth 3Y4.71%
OM growth 5Y2.15%
PM growth 3Y1.22%
PM growth 5Y-4.08%
GM growth 3Y4.86%
GM growth 5Y2.6%
SJR-A.CA Yearly Profit, Operating, Gross MarginsSJR-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SJR-A is creating value.
  • Compared to 1 year ago, SJR-A has about the same amount of shares outstanding.
  • Compared to 1 year ago, SJR-A has an improved debt to assets ratio.
SJR-A.CA Yearly Shares OutstandingSJR-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M
SJR-A.CA Yearly Total Debt VS Total AssetsSJR-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

2.2 Solvency

  • SJR-A has an Altman-Z score of 2.06. This is not the best score and indicates that SJR-A is in the grey zone with still only limited risk for bankruptcy at the moment.
  • SJR-A has a Altman-Z score of 2.06. This is in the better half of the industry: SJR-A outperforms 78.95% of its industry peers.
  • The Debt to FCF ratio of SJR-A is 8.85, which is on the high side as it means it would take SJR-A, 8.85 years of fcf income to pay off all of its debts.
  • SJR-A has a Debt to FCF ratio of 8.85. This is in the better half of the industry: SJR-A outperforms 78.95% of its industry peers.
  • A Debt/Equity ratio of 0.79 indicates that SJR-A is somewhat dependend on debt financing.
  • SJR-A has a Debt to Equity ratio (0.79) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 8.85
Altman-Z 2.06
ROIC/WACC0.92
WACC8.41%
SJR-A.CA Yearly LT Debt VS Equity VS FCFSJR-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B

2.3 Liquidity

  • SJR-A has a Current Ratio of 0.68. This is a bad value and indicates that SJR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of SJR-A (0.68) is worse than 84.21% of its industry peers.
  • SJR-A has a Quick Ratio of 0.68. This is a bad value and indicates that SJR-A is not financially healthy enough and could expect problems in meeting its short term obligations.
  • SJR-A has a Quick ratio of 0.63. This is in the lower half of the industry: SJR-A underperforms 73.68% of its industry peers.
Industry RankSector Rank
Current Ratio 0.68
Quick Ratio 0.63
SJR-A.CA Yearly Current Assets VS Current LiabilitesSJR-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. Growth

3.1 Past

  • SJR-A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.23%.
  • The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
  • SJR-A shows a decrease in Revenue. In the last year, the revenue decreased by -1.68%.
  • Measured over the past years, SJR-A shows a small growth in Revenue. The Revenue has been growing by 2.22% on average per year.
EPS 1Y (TTM)-27.23%
EPS 3Y-2.5%
EPS 5Y3.5%
EPS Q2Q%-12.82%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y0.67%
Revenue growth 5Y2.22%
Sales Q2Q%-1.15%

3.2 Future

  • SJR-A is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.36% yearly.
  • The Revenue is expected to decrease by -0.60% on average over the next years.
EPS Next Y-1.83%
EPS Next 2Y0.48%
EPS Next 3Y-0.36%
EPS Next 5YN/A
Revenue Next Year-0.82%
Revenue Next 2Y-0.57%
Revenue Next 3Y-0.6%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SJR-A.CA Yearly Revenue VS EstimatesSJR-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
SJR-A.CA Yearly EPS VS EstimatesSJR-A.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

More info and screens

Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 27.50, SJR-A can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of SJR-A is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 27.93. SJR-A is around the same levels.
  • Based on the Price/Forward Earnings ratio of 26.34, the valuation of SJR-A can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SJR-A indicates a somewhat cheap valuation: SJR-A is cheaper than 63.16% of the companies listed in the same industry.
  • SJR-A is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.77, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 27.5
Fwd PE 26.34
SJR-A.CA Price Earnings VS Forward Price EarningsSJR-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as SJR-A.
  • SJR-A's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 30.51
EV/EBITDA 10.15
SJR-A.CA Per share dataSJR-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

  • The decent profitability rating of SJR-A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.86
EPS Next 2Y0.48%
EPS Next 3Y-0.36%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for SJR-A!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

Shaw Communications Inc

TSX-V:SJR-A (4/4/2023, 7:00:00 PM)

40.42

-0.06 (-0.15%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)N/A
Earnings (Next)N/A
Inst Owners0.38%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.20B
Revenue(TTM)5.43B
Net Income(TTM)736.00M
Analysts51.25
Price Target41.35 (2.3%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP80.43%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.3%
Min EPS beat(2)-13.59%
Max EPS beat(2)-11%
EPS beat(4)1
Avg EPS beat(4)-7%
Min EPS beat(4)-13.59%
Max EPS beat(4)2.95%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)-3.39%
Revenue beat(4)0
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)-3.39%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.41%
PT rev (3m)0.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.96%
Valuation
Industry RankSector Rank
PE 27.5
Fwd PE 26.34
P/S 3.72
P/FCF 30.51
P/OCF 11.16
P/B 3.15
P/tB N/A
EV/EBITDA 10.15
EPS(TTM)1.47
EY3.64%
EPS(NY)1.53
Fwd EY3.8%
FCF(TTM)1.32
FCFY3.28%
OCF(TTM)3.62
OCFY8.96%
SpS10.87
BVpS12.83
TBVpS-3.74
PEG (NY)N/A
PEG (5Y)7.86
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 4.68%
ROE 11.48%
ROCE N/A
ROIC 7.72%
ROICexc 7.88%
ROICexgc 19.66%
OM 23.55%
PM (TTM) 13.55%
GM 46.34%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.64%
ROIC(5y)N/A
ROICexc(3y)7.63%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-13.79%
ROICexgc growth 5Y0.54%
ROICexc growth 3Y-1.62%
ROICexc growth 5Y1.99%
OM growth 3Y4.71%
OM growth 5Y2.15%
PM growth 3Y1.22%
PM growth 5Y-4.08%
GM growth 3Y4.86%
GM growth 5Y2.6%
F-Score5
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 8.85
Debt/EBITDA 2.32
Cap/Depr 92.43%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 89.95%
Current Ratio 0.68
Quick Ratio 0.63
Altman-Z 2.06
F-Score5
WACC8.41%
ROIC/WACC0.92
Cap/Depr(3y)88.91%
Cap/Depr(5y)113.54%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)100.67%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.23%
EPS 3Y-2.5%
EPS 5Y3.5%
EPS Q2Q%-12.82%
EPS Next Y-1.83%
EPS Next 2Y0.48%
EPS Next 3Y-0.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y0.67%
Revenue growth 5Y2.22%
Sales Q2Q%-1.15%
Revenue Next Year-0.82%
Revenue Next 2Y-0.57%
Revenue Next 3Y-0.6%
Revenue Next 5YN/A
EBIT growth 1Y-2.59%
EBIT growth 3Y5.41%
EBIT growth 5Y4.42%
EBIT Next Year88.73%
EBIT Next 3Y23.6%
EBIT Next 5YN/A
FCF growth 1Y-16.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.83%
OCF growth 3Y5.3%
OCF growth 5Y4.04%

Shaw Communications Inc / SJR-A.CA FAQ

What is the fundamental rating for SJR-A stock?

ChartMill assigns a fundamental rating of 3 / 10 to SJR-A.CA.


Can you provide the valuation status for Shaw Communications Inc?

ChartMill assigns a valuation rating of 0 / 10 to Shaw Communications Inc (SJR-A.CA). This can be considered as Overvalued.


What is the profitability of SJR-A stock?

Shaw Communications Inc (SJR-A.CA) has a profitability rating of 4 / 10.


How financially healthy is Shaw Communications Inc?

The financial health rating of Shaw Communications Inc (SJR-A.CA) is 4 / 10.


What is the earnings growth outlook for Shaw Communications Inc?

The Earnings per Share (EPS) of Shaw Communications Inc (SJR-A.CA) is expected to decline by -1.83% in the next year.