SJR-B Fundamental Analysis - Shaw Communications Inc

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to SJR-B. SJR-B was compared to 14 industry peers in the Media industry. SJR-B has an excellent profitability rating, but there are some minor concerns on its financial health. SJR-B is valued expensive and it does not seem to be growing.

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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.

Each year in the past 5 years SJR-B has been profitable.

Each year in the past 5 years SJR-B had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 4.68%, SJR-B is in the better half of the industry, outperforming 63.16% of the companies in the same industry.

SJR-B has a Return On Equity (11.48%) which is comparable to the rest of the industry.

SJR-B's Return On Invested Capital of 7.72% is amongst the best of the industry. SJR-B outperforms 84.21% of its industry peers.

The Average Return On Invested Capital over the past 3 years for SJR-B is significantly above the industry average of 11.45%.

The last Return On Invested Capital (7.72%) for SJR-B is well below the 3 year average (18.64%), which needs to be investigated, but indicates that SJR-B 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-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.

SJR-B's Profit Margin has declined in the last couple of years.

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's Gross Margin of 46.34% is fine compared to the rest of the industry. SJR-B outperforms 63.16% of its industry peers.

SJR-B'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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

Compared to 1 year ago, SJR-B has about the same amount of shares outstanding.

The debt/assets ratio for SJR-B has been reduced compared to a year ago.

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.

The Altman-Z score of SJR-B (2.06) is better than 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.

SJR-B has a Debt/Equity ratio of 0.79. This is a neutral value indicating SJR-B is somewhat dependend on debt financing.

The Debt to Equity ratio of SJR-B (0.79) is comparable to the rest of the 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.

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.

With a Quick ratio value of 0.63, SJR-B is not doing good in the industry: 78.95% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.68
Quick Ratio	0.63

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.

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-B 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

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.

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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.

SJR-B is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.

Based on the Price/Forward Earnings ratio of 26.38, the valuation of SJR-B can be described as expensive.

The rest of the industry has a similar Price/Forward Earnings ratio as SJR-B.

The average S&P500 Price/Forward Earnings ratio is at 22.64. SJR-B is around the same levels.

		Industry Rank	Sector Rank
PE	27.54
Fwd PE	26.38

4.2 Price Multiples

SJR-B's Enterprise Value to EBITDA is on the same level as the industry average.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of SJR-B is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	30.56
EV/EBITDA	10.16

4.3 Compensation for Growth

SJR-B has an outstanding 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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5. Dividend

5.1 Amount

SJR-B has a Yearly Dividend Yield of 1.26%.

Compared to an average industry Dividend Yield of 3.00, SJR-B pays a bit more dividend than its industry peers.

With a Dividend Yield of 1.26, SJR-B pays less dividend than the S&P500 average, which is at 2.38.

		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

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%

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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 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

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%

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

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens