Shaw Communications Inc (SJR-A.CA) Stock Fundamental Analysis
TSX-V:SJR-A - TSX Venture Exchange - CA82028K1012 - Common Stock - Currency: CAD
Taking everything into account, SJR-A scores 4 out of 10 in our fundamental rating. SJR-A was compared to 12 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 does not seem to be growing, but still is valued expensively.
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.
In the past 5 years SJR-A has always 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.
Looking at the Return On Equity, with a value of 11.48%, SJR-A is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for SJR-A is significantly below the industry average of 31.96%.
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
The Profit Margin of SJR-A (13.55%) is better than 78.95% of its industry peers.
SJR-A's Profit Margin has declined in the last couple of years.
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.
The Gross Margin of SJR-A (46.34%) is better 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.
SJR-A has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for SJR-A has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.06 indicates that SJR-A is not a great score, but indicates 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 better Debt to FCF ratio (8.85) than 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 8.85 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.92
WACC8.41%
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.
SJR-A has a worse Current ratio (0.68) than 84.21% of its industry peers.
A Quick Ratio of 0.63 indicates that SJR-A may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, SJR-A is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for SJR-A have decreased strongly by -27.23% in the last year.
SJR-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
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
Based on estimates for the next years, SJR-A will show a decrease in Earnings Per Share. The EPS will decrease by -0.36% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.50, which means the current valuation is very expensive for SJR-A.
SJR-A's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SJR-A to the average of the S&P500 Index (26.60), we can say SJR-A is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 26.34, the valuation of SJR-A can be described as expensive.
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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.43.
| 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 a very decent 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%