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

Canada - TSX-V:SJR-A - CA82028K1012 - Common Stock

40.42 CAD
-0.06 (-0.15%)
Last: 4/4/2023, 7:00:00 PM
Fundamental Rating

4

Taking everything into account, SJR-A scores 4 out of 10 in our fundamental rating. SJR-A was compared to 14 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 has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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8

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.
SJR-A had positive earnings in each of the past 5 years.
Each year in the past 5 years SJR-A had a positive operating cash flow.
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 2015 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.
With an excellent Return On Invested Capital value of 7.72%, SJR-A belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
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 11.45%.
The 3 year average ROIC (18.64%) for SJR-A is well above the current ROIC(7.72%). The reason for the recent decline needs to be investigated.
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 2015 2016 2017 2018 2019 2020 2021 2022 5 10 15 20

1.3 Margins

SJR-A's Profit Margin of 13.55% is fine compared to the rest of the industry. SJR-A outperforms 78.95% of its industry peers.
SJR-A's Profit Margin has declined in the last couple of years.
SJR-A's Operating Margin of 23.55% is fine compared to the rest of the industry. SJR-A outperforms 78.95% of its industry peers.
SJR-A's Operating Margin has improved in the last couple of years.
SJR-A has a Gross Margin of 46.34%. This is in the better half of the industry: SJR-A outperforms 68.42% of its industry peers.
In the last couple of years the Gross Margin of SJR-A has grown nicely.
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 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

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3

2. Health

2.1 Basic Checks

SJR-A has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SJR-A remains at a similar level compared to 1 year ago.
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 2015 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 2015 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.
Looking at the Altman-Z score, with a value of 2.06, SJR-A is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
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.
With a Debt to Equity ratio value of 0.79, SJR-A perfoms like the industry average, outperforming 52.63% of the companies in the same 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 2015 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.
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.
SJR-A has a worse Quick ratio (0.63) than 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 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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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%.
Measured over the past 5 years, SJR-A shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
The Revenue has decreased by -1.68% in the past year.
SJR-A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.22% yearly.
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.
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.
SJR-A.CA Yearly Revenue VS EstimatesSJR-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 27.50 indicates a quite expensive valuation of SJR-A.
The rest of the industry has a similar Price/Earnings ratio as SJR-A.
Compared to an average S&P500 Price/Earnings ratio of 27.20, SJR-A is valued at the same level.
With a Price/Forward Earnings ratio of 26.34, SJR-A can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, SJR-A is valued a bit cheaper than 63.16% of the companies 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 22.70, 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

SJR-A's Enterprise Value to EBITDA ratio is in line with the industry average.
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 excellent 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%

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0

5. Dividend

5.1 Amount

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

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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 N/A
Earnings (Next)N/A N/A
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 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
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
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 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%