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

TSX:SJR-B • CA82028K2002

Current stock price

40.48 CAD
+0.01 (+0.02%)
Last:

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

6

1. SJR-B.CA Profitability Analysis

1.1 Basic Checks

  • In the past year SJR-B was profitable.
  • SJR-B had a positive operating cash flow in the past year.
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 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.
  • The Return On Invested Capital of SJR-B (7.72%) is better than 84.21% of its industry peers.
  • SJR-B had an Average Return On Invested Capital over the past 3 years of 18.64%. This is significantly above the industry average of 8.76%.
  • 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 2016 2017 2018 2019 2020 2021 2022 5 10 15 20

1.3 Margins

  • The Profit Margin of SJR-B (13.55%) is better than 73.68% of its industry peers.
  • SJR-B's Profit Margin has declined in the last couple of years.
  • The Operating Margin of SJR-B (23.55%) is better than 73.68% of its industry peers.
  • SJR-B's Operating Margin has improved in the last couple of years.
  • The Gross Margin of SJR-B (46.34%) is better 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 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

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4

2. SJR-B.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 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 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.
  • 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 better Debt to FCF ratio (8.85) than 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.
  • SJR-B has a Debt to Equity ratio (0.79) which is in line with 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 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 0.68 indicates that SJR-B may have some problems paying its short term obligations.
  • The Current ratio of SJR-B (0.68) is worse than 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.
  • SJR-B's Quick ratio of 0.63 is on the low side compared to the rest of the industry. SJR-B is outperformed by 78.95% of its industry peers.
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 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-B.CA Growth Analysis

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.
  • SJR-B shows a decrease in Revenue. In the last year, the revenue decreased by -1.68%.
  • 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.
  • 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.
SJR-B.CA Yearly Revenue VS EstimatesSJR-B.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-B.CA Yearly EPS VS EstimatesSJR-B.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-B.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • SJR-B is valuated quite expensively with a Price/Earnings ratio of 27.54.
  • SJR-B's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.95, SJR-B is valued at the same level.
  • A Price/Forward Earnings ratio of 26.38 indicates a quite expensive valuation of SJR-B.
  • 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 38.68. SJR-B is valued slightly cheaper when compared to this.
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 10 20 30

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

3

5. SJR-B.CA Dividend Analysis

5.1 Amount

  • SJR-B has a Yearly Dividend Yield of 1.26%.
  • Compared to an average industry Dividend Yield of 0.19, SJR-B pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.81, SJR-B is paying slightly less dividend.
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.
  • 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
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 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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SJR-B.CA Fundamentals: All Metrics, Ratios and Statistics

Shaw Communications Inc

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

40.48

+0.01 (+0.02%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)N/A
Earnings (Next)01-12
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 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
Graham Number0 (-100%)
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-B.CA Fundamental Analysis 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 for SJR-B stock?

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


What is the profitability of SJR-B stock?

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


Can you provide the PE and PB ratios for SJR-B 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.


What is the financial health of Shaw Communications Inc (SJR-B.CA) stock?

The financial health rating of Shaw Communications Inc (SJR-B.CA) is 4 / 10.