Shaw Communications Inc (SJR-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SJR-B - CA82028K2002 - Common Stock
40.48 CAD
+0.01 (+0.02%)
We assign a fundamental rating of 4 out of 10 to SJR-B. SJR-B was compared to 13 industry peers in the Media industry. Both the profitability and the financial health of SJR-B get a neutral evaluation. Nothing too spectacular is happening here. SJR-B has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
SJR-B had positive earnings in the past year.
SJR-B had a positive operating cash flow in the past year.
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.
SJR-B has a Return On Equity of 11.48%. This is comparable to the rest of the industry: SJR-B outperforms 57.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.72%, SJR-B belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SJR-B is significantly above the industry average of 8.67%.
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 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-B's Profit Margin of 13.55% is fine compared to the rest 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.
Looking at the Operating Margin, with a value of 23.55%, SJR-B is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
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 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-B 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-B remains at a similar level compared to 1 year ago.
SJR-B has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.06 indicates that SJR-B is not a great score, but indicates only limited risk for bankruptcy at the moment.
SJR-B has a Altman-Z score of 2.06. This is amongst the best in the industry. SJR-B outperforms 84.21% of its industry peers.
The Debt to FCF ratio of SJR-B is 8.85, which is on the high side as it means it would take SJR-B, 8.85 years of fcf income to pay off 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.
Looking at the Debt to Equity ratio, with a value of 0.79, SJR-B is in line with its industry, outperforming 47.37% of the companies in the same industry.
| 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-B may have some problems paying its short term obligations.
With a Current ratio value of 0.68, SJR-B is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
SJR-B has a Quick 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 worse Quick ratio (0.63) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for SJR-B have decreased strongly by -27.23% in the last year.
SJR-B shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
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
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.
Based on estimates for the next years, SJR-B will show a decrease in Revenue. The Revenue will decrease by -0.60% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.54 indicates a quite expensive valuation of SJR-B.
The rest of the industry has a similar Price/Earnings ratio as SJR-B.
Compared to an average S&P500 Price/Earnings ratio of 27.00, SJR-B is valued at the same level.
The Price/Forward Earnings ratio is 26.38, which means the current valuation is very expensive for SJR-B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SJR-B is on the same level as its industry peers.
SJR-B is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 26.38 |
4.2 Price Multiples
SJR-B's Enterprise Value to EBITDA ratio is in line with the industry average.
SJR-B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.56 | ||
| EV/EBITDA | 10.16 |
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%
5. Dividend
5.1 Amount
SJR-B has a Yearly Dividend Yield of 1.26%.
SJR-B's Dividend Yield is a higher than the industry average which is at 0.36.
Compared to the average S&P500 Dividend Yield of 1.94, SJR-B is paying slightly less dividend.
| Industry Rank | Sector 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.
SJR-B has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
80.43% of the earnings are spent on dividend by SJR-B. This is not a sustainable payout ratio.
DP80.43%
EPS Next 2Y0.48%
EPS Next 3Y-0.36%
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)
Earnings (Next)
Inst Owners27.26%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.23B
Revenue(TTM)5.43B
Net Income(TTM)736.00M
Analysts51.25
Price Target41.31 (2.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
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-B.CA FAQ
What is the ChartMill fundamental rating of Shaw Communications Inc (SJR-B.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SJR-B.CA.
What is the valuation status of Shaw Communications Inc (SJR-B.CA) stock?
ChartMill assigns a valuation rating of 0 / 10 to Shaw Communications Inc (SJR-B.CA). This can be considered as Overvalued.
How profitable is Shaw Communications Inc (SJR-B.CA) stock?
Shaw Communications Inc (SJR-B.CA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of Shaw Communications Inc (SJR-B.CA) stock?
The Price/Earnings (PE) ratio for Shaw Communications Inc (SJR-B.CA) is 27.54 and the Price/Book (PB) ratio is 3.16.
Can you provide the expected EPS growth for SJR-B stock?
The Earnings per Share (EPS) of Shaw Communications Inc (SJR-B.CA) is expected to decline by -1.83% in the next year.