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

TSX-V:SJR-A • CA82028K1012

Current stock price

40.42 CAD
-0.06 (-0.15%)
Last:

This SJR-A.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SJR-A.CA Profitability Analysis

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

  • Looking at the Return On Assets, with a value of 4.68%, SJR-A is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
  • SJR-A has a better Return On Equity (11.48%) 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.
  • 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 7.66%.
  • 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 2016 2017 2018 2019 2020 2021 2022 5 10 15 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 13.55%, 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 Profit Margin of SJR-A has declined.
  • SJR-A has a Operating Margin of 23.55%. This is in the better half 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'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

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3

2. SJR-A.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SJR-A is creating value.
  • SJR-A has about the same amout of shares outstanding than it did 1 year ago.
  • SJR-A has a better debt/assets ratio than last year.
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

  • 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.
  • SJR-A has a better Altman-Z score (2.06) than 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.
  • The Debt to FCF ratio of SJR-A (8.85) is better 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.
  • Looking at the Debt to Equity ratio, with a value of 0.79, SJR-A is in line with its industry, 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 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 0.68 indicates that SJR-A may have some problems paying its short term obligations.
  • SJR-A has a Current ratio of 0.68. This is amonst the worse of the industry: SJR-A underperforms 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

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

1

3. SJR-A.CA Growth Analysis

3.1 Past

  • The earnings per share for SJR-A have decreased strongly by -27.23% in the last year.
  • The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
  • 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

  • The Earnings Per Share is expected to decrease by -0.36% on average over the next years.
  • 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.
  • 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 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

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3

4. SJR-A.CA Valuation Analysis

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 ratio is in line with the industry average.
  • SJR-A is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
  • 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.
  • When comparing the Price/Forward Earnings ratio of SJR-A to the average of the S&P500 Index (23.54), we can say SJR-A is valued inline with the index average.
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.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as SJR-A.
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

  • 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%

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

0

5. SJR-A.CA Dividend Analysis

5.1 Amount

  • SJR-A does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SJR-A.CA Fundamentals: All Metrics, Ratios and Statistics

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 Fundamental Analysis FAQ

What is the fundamental rating for SJR-A stock?

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


What is the valuation status of Shaw Communications Inc (SJR-A.CA) stock?

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


How profitable is Shaw Communications Inc (SJR-A.CA) stock?

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


What are the PE and PB ratios of Shaw Communications Inc (SJR-A.CA) stock?

The Price/Earnings (PE) ratio for Shaw Communications Inc (SJR-A.CA) is 27.5 and the Price/Book (PB) ratio is 3.15.


Can you provide the expected EPS growth for SJR-A stock?

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