Shaw Communications Inc (SJR-A.CA) Stock Fundamental Analysis
TSX-V:SJR-A - TSX Venture Exchange - CA82028K1012 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to SJR-A. SJR-A was compared to 13 industry peers in the Media industry. While SJR-A has a great profitability rating, there are quite some concerns on its financial health. SJR-A is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SJR-A had positive earnings in the past year.
In the past year SJR-A had a positive cash flow from operations.
Each year in the past 5 years SJR-A has been profitable.
SJR-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SJR-A has a better Return On Assets (4.68%) than 68.42% of its industry peers.
The Return On Equity of SJR-A (11.48%) is better than 63.16% of its industry peers.
SJR-A has a Return On Invested Capital of 7.72%. This is amongst the best in the industry. SJR-A outperforms 89.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SJR-A is significantly above the industry average of 10.26%.
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 Rank | Sector 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
1.3 Margins
SJR-A has a better Profit Margin (13.55%) than 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 has a better Gross Margin (46.34%) than 68.42% of its industry peers.
SJR-A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
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's Altman-Z score of 2.06 is fine compared to the rest of the industry. SJR-A outperforms 78.95% of its industry peers.
SJR-A has a debt to FCF ratio of 8.85. This is a slightly negative value and a sign of low solvency as SJR-A would need 8.85 years to pay back of all of its debts.
SJR-A's Debt to FCF ratio of 8.85 is fine compared to the rest of the industry. SJR-A outperforms 78.95% of its industry peers.
SJR-A has a Debt/Equity ratio of 0.79. This is a neutral value indicating 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 8.85 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.92
WACC8.41%
2.3 Liquidity
A Current Ratio of 0.68 indicates that SJR-A may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.68, SJR-A is doing worse than 84.21% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.63, SJR-A is doing worse than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.63 |
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.
Looking at the last year, SJR-A shows a decrease in Revenue. The Revenue has decreased by -1.68% in the last year.
The Revenue has been growing slightly by 2.22% on average over the past years.
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
The Earnings Per Share is expected to decrease by -0.36% on average over the next years.
SJR-A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.60% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SJR-A is valuated quite expensively with a Price/Earnings ratio of 27.50.
SJR-A's Price/Earnings is on the same level as the industry average.
SJR-A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
SJR-A is valuated quite expensively with a Price/Forward Earnings ratio of 26.34.
SJR-A's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SJR-A is cheaper than 63.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SJR-A to the average of the S&P500 Index (35.19), we can say SJR-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 26.34 |
4.2 Price Multiples
SJR-A's Enterprise Value to EBITDA ratio is in line with the industry average.
SJR-A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.51 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
SJR-A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.86
EPS Next 2Y0.48%
EPS Next 3Y-0.36%
5. Dividend
5.1 Amount
SJR-A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:SJR-A (4/4/2023, 7:00:00 PM)
40.42
-0.06 (-0.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners0.38%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.20B
Analysts51.25
Price Target41.35 (2.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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
ROICexcg growth 3Y-13.79%
ROICexcg 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 Rank | Sector 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%