Shaw Communications Inc (SJR-A.CA) Stock Fundamental Analysis
Canada - TSX-V:SJR-A - CA82028K1012 - Common Stock
40.42 CAD
-0.06 (-0.15%)
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 belongs to the best of the industry regarding profitability, there are 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.
SJR-A had a positive operating cash flow in the past year.
Each year in the past 5 years SJR-A has been profitable.
Each year in the past 5 years SJR-A had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SJR-A (4.68%) is better than 68.42% of its industry peers.
SJR-A has a Return On Equity of 11.48%. This is in the better half of the industry: SJR-A outperforms 63.16% of its industry peers.
SJR-A has a better Return On Invested Capital (7.72%) than 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 above the industry average of 14.62%.
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 Profit Margin of 13.55%. This is in the better half 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.
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 Gross Margin of 46.34%. This is in the better half 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 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
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.
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.
With a decent Altman-Z score value of 2.06, SJR-A is doing good in the industry, outperforming 78.95% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 8.85, SJR-A is doing good in the industry, outperforming 78.95% of the companies in the same industry.
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 of 0.79. This is comparable to the rest of the industry: SJR-A outperforms 52.63% of 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
A Current Ratio of 0.68 indicates that SJR-A may have some problems paying its short term obligations.
SJR-A's Current ratio of 0.68 is on the low side compared to the rest of the industry. SJR-A is outperformed by 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.
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
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.
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.
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
Based on the Price/Earnings ratio of 27.50, the valuation of SJR-A can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SJR-A.
SJR-A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.56.
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.
The average S&P500 Price/Forward Earnings ratio is at 34.62. SJR-A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 26.34 |
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 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
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 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
Graham NumberN/A
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
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 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%
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.
What is the valuation status for SJR-A 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.
Can you provide the PE and PB ratios for SJR-A 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.
How sustainable is the dividend of Shaw Communications Inc (SJR-A.CA) stock?
The dividend rating of Shaw Communications Inc (SJR-A.CA) is 1 / 10 and the dividend payout ratio is 80.43%.