SHAW COMMUNICATIONS INC-B (SJR) Stock Fundamental Analysis
NYSE:SJR - New York Stock Exchange, Inc. - CA82028K2002 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SJR. SJR was compared to 96 industry peers in the Media industry. While SJR belongs to the best of the industry regarding profitability, there are concerns on its financial health. SJR is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SJR was profitable.
SJR had a positive operating cash flow in the past year.
SJR had positive earnings in each of the past 5 years.
SJR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SJR's Return On Assets of 4.68% is fine compared to the rest of the industry. SJR outperforms 74.49% of its industry peers.
With a decent Return On Equity value of 11.48%, SJR is doing good in the industry, outperforming 72.45% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.72%, SJR is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SJR is significantly above the industry average of 6.73%.
The 3 year average ROIC (18.64%) for SJR 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's Profit Margin of 13.55% is fine compared to the rest of the industry. SJR outperforms 79.59% of its industry peers.
In the last couple of years the Profit Margin of SJR has declined.
With an excellent Operating Margin value of 23.55%, SJR belongs to the best of the industry, outperforming 91.84% of the companies in the same industry.
In the last couple of years the Operating Margin of SJR has grown nicely.
SJR has a Gross Margin (46.34%) which is in line with its industry peers.
In the last couple of years the Gross Margin of SJR 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 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SJR has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for SJR has been reduced compared to a year ago.
2.2 Solvency
SJR has an Altman-Z score of 2.05. This is not the best score and indicates that SJR is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.05, SJR is in the better half of the industry, outperforming 76.53% of the companies in the same industry.
SJR has a debt to FCF ratio of 8.85. This is a slightly negative value and a sign of low solvency as SJR would need 8.85 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.85, SJR is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that SJR is somewhat dependend on debt financing.
SJR has a Debt to Equity ratio (0.79) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 8.85 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.92
WACC8.41%
2.3 Liquidity
SJR has a Current Ratio of 0.68. This is a bad value and indicates that SJR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SJR (0.68) is worse than 82.65% of its industry peers.
A Quick Ratio of 0.63 indicates that SJR may have some problems paying its short term obligations.
SJR has a worse Quick ratio (0.63) than 84.69% 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 have decreased strongly by -27.23% in the last year.
SJR 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
The Earnings Per Share is expected to decrease by -0.36% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.44, SJR can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as SJR.
SJR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.70, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.19 indicates a quite expensive valuation of SJR.
SJR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SJR to the average of the S&P500 Index (22.49), we can say SJR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.44 | ||
| Fwd PE | 26.19 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SJR.
SJR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.34 | ||
| EV/EBITDA | 10.1 |
4.3 Compensation for Growth
SJR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.85
EPS Next 2Y0.48%
EPS Next 3Y-0.36%
5. Dividend
5.1 Amount
SJR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.18
+0.27 (+0.9%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners1.1%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap15.08B
Analysts51.25
Price Target30.43 (0.83%)
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 Years3
Div Non Decr Years3
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)0.15%
PT rev (3m)0.99%
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 | 27.44 | ||
| Fwd PE | 26.19 | ||
| P/S | 3.7 | ||
| P/FCF | 30.34 | ||
| P/OCF | 11.1 | ||
| P/B | 3.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.1 |
EPS(TTM)1.1
EY3.64%
EPS(NY)1.15
Fwd EY3.82%
FCF(TTM)0.99
FCFY3.3%
OCF(TTM)2.72
OCFY9.01%
SpS8.16
BVpS9.63
TBVpS-2.81
PEG (NY)N/A
PEG (5Y)7.85
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 | 2.05 |
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%