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

TSX:SJR-B - Toronto Stock Exchange - CA82028K2002 - Common Stock - Currency: CAD

40.48  +0.01 (+0.02%)

Fundamental Rating

4

SJR-B gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 industry peers in the Media industry. SJR-B scores excellent on profitability, but there are some minor concerns on its financial health. SJR-B has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year SJR-B was profitable.
In the past year SJR-B had a positive cash flow from operations.
SJR-B had positive earnings in each of the past 5 years.
Each year in the past 5 years SJR-B had a positive operating cash flow.
SJR-B.CA Yearly Net Income VS EBIT VS OCF VS FCFSJR-B.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-B's Return On Assets of 4.68% is fine compared to the rest of the industry. SJR-B outperforms 63.16% of its industry peers.
Looking at the Return On Equity, with a value of 11.48%, SJR-B is in line with its industry, outperforming 57.89% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.72%, SJR-B belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SJR-B is significantly below the industry average of 35.65%.
The 3 year average ROIC (18.64%) for SJR-B 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-B.CA Yearly ROA, ROE, ROICSJR-B.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 5 10 15 20

1.3 Margins

SJR-B has a Profit Margin of 13.55%. This is in the better half of the industry: SJR-B outperforms 73.68% of its industry peers.
In the last couple of years the Profit Margin of SJR-B has declined.
SJR-B has a better Operating Margin (23.55%) than 73.68% of its industry peers.
SJR-B's Operating Margin has improved in the last couple of years.
SJR-B has a better Gross Margin (46.34%) than 63.16% of its industry peers.
In the last couple of years the Gross Margin of SJR-B 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-B.CA Yearly Profit, Operating, Gross MarginsSJR-B.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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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SJR-B is creating value.
SJR-B has about the same amout of shares outstanding than it did 1 year ago.
SJR-B has a better debt/assets ratio than last year.
SJR-B.CA Yearly Shares OutstandingSJR-B.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M
SJR-B.CA Yearly Total Debt VS Total AssetsSJR-B.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-B has an Altman-Z score of 2.06. This is not the best score and indicates that SJR-B is in the grey zone with still only limited risk for bankruptcy at the moment.
SJR-B's Altman-Z score of 2.06 is amongst the best of the industry. SJR-B outperforms 84.21% of its industry peers.
SJR-B has a debt to FCF ratio of 8.85. This is a slightly negative value and a sign of low solvency as SJR-B would need 8.85 years to pay back of all of its debts.
SJR-B has a Debt to FCF ratio of 8.85. This is in the better half of the industry: SJR-B outperforms 73.68% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that SJR-B is somewhat dependend on debt financing.
SJR-B's Debt to Equity ratio of 0.79 is in line compared to the rest of the industry. SJR-B outperforms 47.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 8.85
Altman-Z 2.06
ROIC/WACC0.92
WACC8.41%
SJR-B.CA Yearly LT Debt VS Equity VS FCFSJR-B.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-B has a Current Ratio of 0.68. This is a bad value and indicates that SJR-B is not financially healthy enough and could expect problems in meeting its short term obligations.
SJR-B has a Current ratio of 0.68. This is amonst the worse of the industry: SJR-B underperforms 89.47% of its industry peers.
A Quick Ratio of 0.63 indicates that SJR-B may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.63, SJR-B is doing worse than 78.95% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.68
Quick Ratio 0.63
SJR-B.CA Yearly Current Assets VS Current LiabilitesSJR-B.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-B 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-B shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
Looking at the last year, SJR-B shows a decrease in Revenue. The Revenue has decreased by -1.68% in the last year.
SJR-B 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

Based on estimates for the next years, SJR-B 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.
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-B.CA Yearly Revenue VS EstimatesSJR-B.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-B.CA Yearly EPS VS EstimatesSJR-B.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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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.54, which means the current valuation is very expensive for SJR-B.
SJR-B's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.34. SJR-B is around the same levels.
SJR-B is valuated quite expensively with a Price/Forward Earnings ratio of 26.38.
SJR-B's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, SJR-B is valued at the same level.
Industry RankSector Rank
PE 27.54
Fwd PE 26.38
SJR-B.CA Price Earnings VS Forward Price EarningsSJR-B.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SJR-B.
SJR-B's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 30.56
EV/EBITDA 10.16
SJR-B.CA Per share dataSJR-B.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

SJR-B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.88
EPS Next 2Y0.48%
EPS Next 3Y-0.36%

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.26%, SJR-B has a reasonable but not impressive dividend return.
SJR-B's Dividend Yield is a higher than the industry average which is at 3.07.
Compared to an average S&P500 Dividend Yield of 2.40, SJR-B's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.26%

5.2 History

SJR-B has been paying a dividend for over 5 years, so it has already some track record.
As SJR-B did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years6
SJR-B.CA Yearly Dividends per shareSJR-B.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8 1

5.3 Sustainability

SJR-B pays out 80.43% of its income as dividend. This is not a sustainable payout ratio.
DP80.43%
EPS Next 2Y0.48%
EPS Next 3Y-0.36%
SJR-B.CA Yearly Income VS Free CF VS DividendSJR-B.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 500M 1B
SJR-B.CA Dividend Payout.SJR-B.CA Dividend Payout, showing the Payout Ratio.SJR-B.CA Dividend Payout.PayoutRetained Earnings

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Shaw Communications Inc

TSX:SJR-B (4/4/2023, 7:00:00 PM)

40.48

+0.01 (+0.02%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)N/A N/A
Earnings (Next)01-12 2022-01-12
Inst Owners27.26%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.23B
Analysts51.25
Price Target41.31 (2.05%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.26%
Yearly Dividend0.3
Dividend Growth(5Y)N/A
DP80.43%
Div Incr Years1
Div Non Decr Years6
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%
PT rev (3m)0.75%
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 27.54
Fwd PE 26.38
P/S 3.72
P/FCF 30.56
P/OCF 11.18
P/B 3.16
P/tB N/A
EV/EBITDA 10.16
EPS(TTM)1.47
EY3.63%
EPS(NY)1.53
Fwd EY3.79%
FCF(TTM)1.32
FCFY3.27%
OCF(TTM)3.62
OCFY8.94%
SpS10.87
BVpS12.83
TBVpS-3.74
PEG (NY)N/A
PEG (5Y)7.88
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%