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SHAW COMMUNICATIONS INC-B (SJR) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:SJR - CA82028K2002 - Common Stock

30.18 USD
+0.27 (+0.9%)
Last: 4/3/2023, 8:04:00 PM
30.19 USD
+0.01 (+0.03%)
After Hours: 4/3/2023, 8:04:00 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SJR. SJR was compared to 92 industry peers in the Media industry. There are concerns on the financial health of SJR while its profitability can be described as average. SJR has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year SJR was profitable.
  • In the past year SJR had a positive cash flow from operations.
SJR Yearly Net Income VS EBIT VS OCF VS FCFSJR 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 has a Return On Assets of 4.68%. This is in the better half of the industry: SJR outperforms 74.49% of its industry peers.
  • SJR's Return On Equity of 11.48% is fine compared to the rest of the industry. SJR outperforms 72.45% of its industry peers.
  • With a decent Return On Invested Capital value of 7.72%, SJR is doing good in 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 7.07%.
  • 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 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 Yearly ROA, ROE, ROICSJR 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 (13.55%) is better than 79.59% of its industry peers.
  • SJR's Profit Margin has declined in the last couple of years.
  • SJR's Operating Margin of 23.55% is amongst the best of the industry. SJR outperforms 91.84% of its industry peers.
  • In the last couple of years the Operating Margin of SJR has grown nicely.
  • SJR has a Gross Margin of 46.34%. This is comparable to the rest of the industry: SJR outperforms 56.12% of its industry peers.
  • SJR's Gross Margin has improved in the last couple of years.
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 Yearly Profit, Operating, Gross MarginsSJR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SJR is creating value.
  • The number of shares outstanding for SJR remains at a similar level compared to 1 year ago.
  • Compared to 1 year ago, SJR has an improved debt to assets ratio.
SJR Yearly Shares OutstandingSJR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M
SJR Yearly Total Debt VS Total AssetsSJR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 2.05 indicates that SJR is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • SJR has a Altman-Z score of 2.05. This is in the better half of the industry: SJR outperforms 76.53% of its industry peers.
  • The Debt to FCF ratio of SJR is 8.85, which is on the high side as it means it would take SJR, 8.85 years of fcf income to pay off all of its debts.
  • SJR has a better Debt to FCF ratio (8.85) than 63.27% of its industry peers.
  • SJR has a Debt/Equity ratio of 0.79. This is a neutral value indicating SJR is somewhat dependend on debt financing.
  • SJR's Debt to Equity ratio of 0.79 is in line compared to the rest of the industry. SJR outperforms 48.98% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 8.85
Altman-Z 2.05
ROIC/WACC0.92
WACC8.41%
SJR Yearly LT Debt VS Equity VS FCFSJR 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

  • 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.
  • Looking at the Current ratio, with a value of 0.68, SJR is doing worse than 82.65% of the companies in the same industry.
  • SJR has a Quick 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.
  • Looking at the Quick ratio, with a value of 0.63, SJR is doing worse than 84.69% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.68
Quick Ratio 0.63
SJR Yearly Current Assets VS Current LiabilitesSJR 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

1

3. Growth

3.1 Past

  • The earnings per share for SJR have decreased strongly by -27.23% in the last year.
  • Measured over the past 5 years, SJR shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
  • SJR shows a decrease in Revenue. In the last year, the revenue decreased by -1.68%.
  • SJR 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

  • SJR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.36% yearly.
  • SJR 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SJR Yearly Revenue VS EstimatesSJR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
SJR Yearly EPS VS EstimatesSJR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.44, the valuation of SJR can be described as expensive.
  • SJR's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of SJR to the average of the S&P500 Index (27.25), we can say SJR is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 26.19, the valuation of SJR can be described as expensive.
  • SJR's Price/Forward Earnings is on the same level as the industry average.
  • SJR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
Industry RankSector Rank
PE 27.44
Fwd PE 26.19
SJR Price Earnings VS Forward Price EarningsSJR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • SJR's Enterprise Value to EBITDA is on the same level as the industry average.
  • SJR's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 30.34
EV/EBITDA 10.1
SJR Per share dataSJR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

4.3 Compensation for Growth

  • SJR has a very decent 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%

0

5. Dividend

5.1 Amount

  • No dividends for SJR!.
Industry RankSector Rank
Dividend Yield N/A

SHAW COMMUNICATIONS INC-B / SJR FAQ

What is the fundamental rating for SJR stock?

ChartMill assigns a fundamental rating of 3 / 10 to SJR.


Can you provide the valuation status for SHAW COMMUNICATIONS INC-B?

ChartMill assigns a valuation rating of 0 / 10 to SHAW COMMUNICATIONS INC-B (SJR). This can be considered as Overvalued.


How profitable is SHAW COMMUNICATIONS INC-B (SJR) stock?

SHAW COMMUNICATIONS INC-B (SJR) has a profitability rating of 4 / 10.


What are the PE and PB ratios of SHAW COMMUNICATIONS INC-B (SJR) stock?

The Price/Earnings (PE) ratio for SHAW COMMUNICATIONS INC-B (SJR) is 27.44 and the Price/Book (PB) ratio is 3.13.


Can you provide the dividend sustainability for SJR stock?

The dividend rating of SHAW COMMUNICATIONS INC-B (SJR) is 0 / 10 and the dividend payout ratio is 80.43%.