Corus Entertainment (TSX:CJR.B) - Share price, News & Analysis

Q: What is the Fair Price of CJR.B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CJR.B (CA$3.53) is trading below our estimate of [[fair value]] (CA$30.68)

CJR.B fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	1/6
Dividends	4/6

CJR.B Stock Overview

Corus Entertainment Inc., a media and content company, operates specialty and conventional television networks, and radio stations in Canada and internationally.

Rewards

Trading at 88.5% below our estimate of its fair value

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Corus Entertainment Competitors

Stingray Group

TSX:RAY.A

CA$433.3m

TVA Group

TSX:TVA.B

CA$121.4m

ZoomerMedia

TSXV:ZUM

CA$43.0m

Cogeco

TSX:CGO

CA$1.1b

Price History & Performance

Summary of all time highs, changes and price drops for Corus Entertainment
Historical stock prices
Current Share Price	CA$3.53
52 Week High	CA$6.40
52 Week Low	CA$3.50
Beta	1.73
1 Month Change	-21.03%
3 Month Change	-27.96%
1 Year Change	-42.60%
3 Year Change	-43.43%
5 Year Change	-74.16%
Change since IPO	-63.33%

Recent News & Updates

Jun 16

These 4 Measures Indicate That Corus Entertainment (TSE:CJR.B) Is Using Debt Extensively

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

	CJR.B	CA Media	CA Market
7D	-11.5%	-0.3%	-0.8%
1Y	-42.6%	-7.3%	-5.0%

Return vs Industry: CJR.B underperformed the Canadian Media industry which returned -7.5% over the past year.

Return vs Market: CJR.B underperformed the Canadian Market which returned -4.7% over the past year.

Price Volatility

Is CJR.B's price volatile compared to industry and market?
CJR.B volatility
CJR.B Average Weekly Movement	5.2%
Media Industry Average Movement	5.8%
Market Average Movement	10.1%
10% most volatile stocks in CA Market	17.4%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: CJR.B is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CJR.B's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	3,295	Doug Murphy	https://www.corusent.com

Corus Entertainment Inc., a media and content company, operates specialty and conventional television networks, and radio stations in Canada and internationally. It operates in two segments, Television and Radio. The Television segment operates 33 specialty television networks and 15 conventional television stations.

Corus Entertainment Fundamentals Summary

How do Corus Entertainment's earnings and revenue compare to its market cap?
CJR.B fundamental statistics
Market Cap	CA$717.29m
Earnings (TTM)	CA$141.93m
Revenue (TTM)	CA$1.62b

5.1x

P/E Ratio

0.4x

P/S Ratio

Is CJR.B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CJR.B income statement (TTM)
Revenue	CA$1.62b
Cost of Revenue	CA$1.13b
Gross Profit	CA$490.15m
Other Expenses	CA$348.23m
Earnings	CA$141.93m

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.70
Gross Margin	30.25%
Net Profit Margin	8.76%
Debt/Equity Ratio	97.8%

How did CJR.B perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

35%

Payout Ratio

Does CJR.B pay a reliable dividends?

See CJR.B dividend history and benchmarks

When do you need to buy CJR.B by to receive an upcoming dividend?
Corus Entertainment dividend dates
Ex Dividend Date	Sep 14 2022
Dividend Pay Date	Sep 29 2022
Days until Ex dividend	73 days
Days until Dividend pay date	88 days

Does CJR.B pay a reliable dividends?

See CJR.B dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is CJR.B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CJR.B?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CJR.B. This is calculated by dividing CJR.B's market cap by their current preferred multiple.
What is CJR.B's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$717.29m

CJR.B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	4.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does CJR.B's PE Ratio compare to its peers?

CJR.B PE Ratio vs Peers

The above table shows the PE ratio for CJR.B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.4x
RAY.A Stingray Group	13x	17.6%	CA$433.3m
TVA.B TVA Group	5.5x	n/a	CA$121.4m
ZUM ZoomerMedia	11.6x	n/a	CA$43.0m
CGO Cogeco	7.5x	5.3%	CA$1.1b
CJR.B Corus Entertainment	5.1x	n/a	CA$717.3m

Forward PE

Price-To-Earnings vs Peers: CJR.B is good value based on its Price-To-Earnings Ratio (5.1x) compared to the peer average (9.4x).

Price to Earnings Ratio vs Industry

How does CJR.B's PE Ratio compare vs other companies in the North American Media Industry?

Price-To-Earnings vs Industry: CJR.B is good value based on its Price-To-Earnings Ratio (5.1x) compared to the Canadian Media industry average (10.2x)

Price to Earnings Ratio vs Fair Ratio

What is CJR.B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CJR.B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CJR.B's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of CJR.B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CJR.B (CA$3.53) is trading below our estimate of fair value (CA$30.68)

Significantly Below Fair Value: CJR.B is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CJR.B's PEG Ratio to determine if it is good value.

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Future Growth

How is Corus Entertainment forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

0.4%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CJR.B's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if CJR.B's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if CJR.B's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CJR.B's revenue (0.4% per year) is forecast to grow slower than the Canadian market (6.5% per year).

High Growth Revenue: CJR.B's revenue (0.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CJR.B's Return on Equity is forecast to be low in 3 years time (12.3%).

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Past Performance

How has Corus Entertainment performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CJR.B has high quality earnings.

Growing Profit Margin: CJR.B's current net profit margins (8.8%) are lower than last year (12.2%).

Past Earnings Growth Analysis

Earnings Trend: CJR.B has become profitable over the past 5 years, growing earnings by 7.4% per year.

Accelerating Growth: CJR.B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CJR.B had negative earnings growth (-22.4%) over the past year, making it difficult to compare to the Media industry average (-10%).

Return on Equity

High ROE: CJR.B's Return on Equity (12.2%) is considered low.

Discover strong past performing companies

Financial Health

How is Corus Entertainment's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CJR.B's short term assets (CA$486.6M) do not cover its short term liabilities (CA$630.7M).

Long Term Liabilities: CJR.B's short term assets (CA$486.6M) do not cover its long term liabilities (CA$2.1B).

Debt to Equity History and Analysis

Debt Level: CJR.B's net debt to equity ratio (93.8%) is considered high.

Reducing Debt: CJR.B's debt to equity ratio has increased from 81.7% to 97.8% over the past 5 years.

Debt Coverage: CJR.B's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: CJR.B's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

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Dividend

What is Corus Entertainment current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.80%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: CJR.B's dividend (6.8%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: CJR.B's dividend (6.8%) is in the top 25% of dividend payers in the Canadian market (5.4%)

Stability and Growth of Payments

Stable Dividend: CJR.B's dividend payments have been volatile in the past 10 years.

Growing Dividend: CJR.B's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.1%), CJR.B's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (27.2%), CJR.B's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure

CEO

Doug Murphy (59 yo)

7.25yrs

Tenure

CA$4,444,073

Compensation

Mr. Douglas D. Murphy, also known as Doug, HBA, MBA has been the Chief Executive Officer and President of Corus Entertainment Inc. since March 30, 2015. He joined Corus in 2003 as Executive Vice President....

CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD3.44M) is above average for companies of similar size in the Canadian market ($USD1.26M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: CJR.B's management team is seasoned and experienced (6.3 years average tenure).

Board Members

Experienced Board: CJR.B's board of directors are considered experienced (6.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: CJR.B insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/05/31
Annual Earnings	2021/08/31