TSX:CJR.B

Stock Analysis Report

Corus Entertainment

Executive Summary

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

Rewards

Trading at 69.2% below its fair value

Became profitable this year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Undervalued second-rate dividend payer.


Similar Companies

Sirius XM Holdings

NasdaqGS:SIRI

Share Price & News

How has Corus Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CJR.B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

CJR.B

-1.1%

CA Media

1.4%

CA Market


1 Year Return

-2.4%

CJR.B

9.5%

CA Media

10.1%

CA Market

Return vs Industry: CJR.B underperformed the Canadian Media industry which returned 9.7% over the past year.

Return vs Market: CJR.B underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

CJR.BIndustryMarket
7 Day2.4%-1.1%1.4%
30 Day5.2%-1.7%2.6%
90 Day9.8%1.9%6.5%
1 Year1.7%-2.4%13.4%9.5%13.7%10.1%
3 Year-45.4%-57.7%23.3%9.2%17.8%7.1%
5 Year-61.8%-75.1%21.6%-2.5%36.3%16.3%

Price Volatility Vs. Market

How volatile is Corus Entertainment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Corus Entertainment undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CJR.B (CA$5.38) is trading below our estimate of fair value (CA$17.48)

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


Price To Earnings Ratio

PE vs Industry: CJR.B is good value based on its PE Ratio (6.5x) compared to the Media industry average (14.6x).

PE vs Market: CJR.B is good value based on its PE Ratio (6.5x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CJR.B is good value based on its PB Ratio (0.7x) compared to the CA Media industry average (0.7x).


Next Steps

Future Growth

How is Corus Entertainment forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-0.6%

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 (1.4%).

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 earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CJR.B's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: CJR.B's revenue is forecast to decline over the next 3 years (-0.8% 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 (10.8%).


Next Steps

Past Performance

How has Corus Entertainment performed over the past 5 years?

-28.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CJR.B has a large one-off loss of CA$123.7M impacting its November 30 2019 financial results.

Growing Profit Margin: CJR.B became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CJR.B has become profitable over the past 5 years, growing earnings by -28.3% per year.

Accelerating Growth: CJR.B has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CJR.B has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (5.3%).


Return on Equity

High ROE: CJR.B's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Corus Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: CJR.B's short term assets (CA$555.0M) do not cover its short term liabilities (CA$610.9M).

Long Term Liabilities: CJR.B's short term assets (CA$555.0M) do not cover its long term liabilities (CA$2.6B).


Debt to Equity History and Analysis

Debt Level: CJR.B's debt to equity ratio (92.5%) is considered high.

Reducing Debt: CJR.B's debt to equity ratio has increased from 66.2% to 92.5% over the past 5 years.

Debt Coverage: CJR.B's debt is well covered by operating cash flow (21.2%).

Interest Coverage: CJR.B's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

Inventory Level: CJR.B has a low level of unsold assets or inventory.

Debt Coverage by Assets: CJR.B's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

4.27%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Corus Entertainment before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.3%marketbottom25%1.9%markettop25%5.4%industryaverage3.1%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: CJR.B's dividend (4.46%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: CJR.B's dividend (4.46%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.3%), CJR.B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CJR.B's dividends in 3 years are forecast to be well covered by earnings (25.8% payout ratio).


Next Steps

Management

What is the CEO of Corus Entertainment's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Doug Murphy (56yo)

4.8yrs

Tenure

CA$4,777,838

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. Mr. Murphy served as the Chief Operating Officer and ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD3.66M) is above average for companies of similar size in the Canadian market ($USD1.63M).

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


Management Age and Tenure

3.8yrs

Average Tenure

56yo

Average Age

Experienced Management: CJR.B's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

60yo

Average Age

Experienced Board: CJR.B's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$548,286,56131 May 19
Shaw Communications Inc.
EntityCompany
Shares80,630,383
Max PriceCA$6.80
BuyCA$123,98028 May 19
The Shaw Family Foundation, Endowment Arm
EntityCompany
Shares20,000
Max PriceCA$6.20
BuyCA$629,64024 May 19
G3 Capital Partners LLC
EntityCompany
Shares100,000
Max PriceCA$6.30

Ownership Breakdown

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


Management Team

  • John Gossling (53yo)

    Executive VP & CFO

    • Tenure: 3.5yrs
    • Compensation: CA$2.51m
  • Heather Shaw (59yo)

    Executive Chairman of the Board

    • Tenure: 20.3yrs
    • Compensation: CA$1.42m
  • Doug Murphy (56yo)

    President

    • Tenure: 4.8yrs
    • Compensation: CA$4.78m
  • Troy Reeb

    Executive Vice President of Broadcast Networks

    • Compensation: CA$1.25m
  • Shawn Kelly

    Executive Vice President of Technology

    • Tenure: 3.8yrs
  • Greg McLelland

    Executive VP & Chief Revenue Officer

    • Tenure: 3.8yrs
    • Compensation: CA$1.95m
  • Cheryl Fullerton

    Executive Vice President of People & Communications

    • Tenure: 3.8yrs
  • Dale Hancocks

    Executive VP & General Counsel

    • Julie Edwards

      Vice President of Facilities & Administration

      • Heidi Kucher

        Director of Investor Relations


        Board Members

        • Michael D'Avella (60yo)

          Independent Director

          • Tenure: 3.8yrs
          • Compensation: CA$83.13k
        • Michael Boychuk (63yo)

          Independent Director

          • Tenure: 1yrs
          • Compensation: CA$69.38k
        • John Frascotti (58yo)

          Independent Director

          • Tenure: 4yrs
          • Compensation: CA$123.26k
        • Cathy Roozen (63yo)

          Independent Director

          • Tenure: 8.6yrs
          • Compensation: CA$102.50k
        • Heather Shaw (59yo)

          Executive Chairman of the Board

          • Tenure: 20.3yrs
          • Compensation: CA$1.42m
        • Julie Shaw (58yo)

          Vice Chairman of the Board

          • Tenure: 11.8yrs
          • Compensation: CA$95.63k
        • Fernand Bélisle (74yo)

          Independent Lead Director

          • Tenure: 4yrs
          • Compensation: CA$90.00k
        • Doug Murphy (56yo)

          President

          • Tenure: 4.8yrs
          • Compensation: CA$4.78m
        • Mark Hollinger (60yo)

          Independent Director

          • Tenure: 5.5yrs
          • Compensation: CA$117.55k
        • Barry James (61yo)

          Independent Director

          • Tenure: 6yrs
          • Compensation: CA$90.00k

        Company Information

        Corus Entertainment Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Corus Entertainment Inc.
        • Ticker: CJR.B
        • Exchange: TSX
        • Founded: 1998
        • Industry: Broadcasting
        • Sector: Media
        • Market Cap: CA$1.183b
        • Shares outstanding: 210.42m
        • Website: https://www.corusent.com

        Number of Employees


        Location

        • Corus Entertainment Inc.
        • Corus Quay
        • 25 Dockside Drive
        • Toronto
        • Ontario
        • M5A 0B5
        • Canada

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        CJR.BTSX (The Toronto Stock Exchange)YesClass B Non-Voting SharesCACADAug 1999
        CJRE.FOTCPK (Pink Sheets LLC)YesClass B Non-Voting SharesUSUSDAug 1999
        9CODB (Deutsche Boerse AG)YesClass B Non-Voting SharesDEEURAug 1999
        0UR4LSE (London Stock Exchange)YesClass B Non-Voting SharesGBCADAug 1999

        Biography

        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 35 specialty television networks and 15 conventional television stations. It is also involved in the production and distribution of films and television programs; production and distribution of animation software; and merchandise licensing and book publishing activities. In addition, this segment provides social digital agency and social influencer network, as well as media and technology services. Its primary brands include Global Television, W Network, OWN: Oprah Winfrey Network Canada, HGTV Canada, Food Network Canada, History, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, and Nickelodeon Canada. The Radio segment operates 39 radio stations that include a network of news-talk radio stations, as well as classic rock, country, new rock, and contemporary music formats. The company also provides children’s animated content and related consumer products; and digital content and animation creation software. Corus Entertainment Inc. was founded in 1998 and is headquartered in Toronto, Canada. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/20 23:36
        End of Day Share Price2020/01/20 00:00
        Earnings2019/11/30
        Annual Earnings2019/08/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.