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.

Snowflake

Fundamentals

Undervalued second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

TSX:CJR.B

0.7%

CA Media

1.2%

CA Market


1 Year Return

28.9%

TSX:CJR.B

17.6%

CA Media

-0.4%

CA Market

CJR.B outperformed the Media industry which returned 17% over the past year.

CJR.B outperformed the Market in Canada which returned -0.3% over the past year.


Share holder returns

CJR.BIndustryMarket
7 Day-1.1%0.7%1.2%
30 Day5.9%2.4%3.3%
90 Day-15.5%1.4%0.8%
1 Year34.5%28.9%22.2%17.6%3.1%-0.4%
3 Year-42.0%-56.0%28.7%13.6%18.0%7.4%
5 Year-66.6%-78.4%28.4%1.2%22.0%4.5%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Corus Entertainment's share price is below the future cash flow value, and at a moderate discount (> 20%).

Corus Entertainment's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Corus Entertainment is good value based on earnings compared to the CA Media industry average.

Corus Entertainment is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Corus Entertainment, we can't assess if its growth is good value.


Price Based on Value of Assets

Corus Entertainment is good value based on assets compared to the CA Media industry average.


Next Steps

Future Growth

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

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Corus Entertainment's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Corus Entertainment's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

Corus Entertainment's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.

Corus Entertainment's earnings growth is positive but not above the Canada market average.

Corus Entertainment's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Corus Entertainment is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Corus Entertainment performed over the past 5 years?

-47.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Corus Entertainment's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Corus Entertainment has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Corus Entertainment has become profitable in the last year making it difficult to compare the North America Media industry average.


Return on Equity

Corus Entertainment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Corus Entertainment used its assets less efficiently than the CA Media industry average last year based on Return on Assets.


Return on Capital Employed

Corus Entertainment has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Corus Entertainment's financial position?


Financial Position Analysis

Corus Entertainment's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Corus Entertainment's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Corus Entertainment's level of debt (102.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (66.7% vs 102.8% today).

Debt is not well covered by operating cash flow (18.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).


Balance Sheet

Low level of unsold assets.

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?

4.49%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Corus Entertainment's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.96%).

Corus Entertainment's dividend is below the markets top 25% of dividend payers in Canada (5.79%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Doug Murphy (56yo)

4.5yrs

Tenure

CA$4,061,945

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

Doug's remuneration is higher than average for companies of similar size in Canada.

Doug's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

56yo

Average Age

The tenure for the Corus Entertainment management team is about average.


Board Age and Tenure

5.2yrs

Average Tenure

60yo

Average Age

The tenure for the Corus Entertainment board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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
BuyCA$14,40026 Nov 18
Judy Adam
EntityIndividual
Shares3,000
Max PriceCA$4.80
BuyCA$47,60026 Nov 18
Douglas Murphy
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceCA$4.76
BuyCA$185,10026 Nov 18
Douglas Murphy
EntityIndividual
Role
Chief Executive Officer
President
Shares40,000
Max PriceCA$4.65

Ownership Breakdown


Management Team

  • John Gossling (53yo)

    Executive VP & CFO

    • Tenure: 3.2yrs
    • Compensation: CA$2.16m
  • Heather Shaw (59yo)

    Executive Chairman

    • Tenure: 20yrs
    • Compensation: CA$1.75m
  • Doug Murphy (56yo)

    President

    • Tenure: 4.5yrs
    • Compensation: CA$4.06m
  • Colin Bohm

    Executive Vice President of Content & Corporate Strategy

    • Tenure: 4yrs
  • Shawn Kelly

    Executive Vice President of Technology

    • Tenure: 3.5yrs
  • Greg McLelland

    Chief Revenue Officer & Executive VP

    • Tenure: 3.5yrs
    • Compensation: CA$1.32m
  • Cheryl Fullerton

    Executive Vice President of People & Communications

    • Tenure: 3.5yrs
  • Dale Hancocks

    Executive VP & General Counsel

    • Tenure: 0yrs
  • Julie Edwards

    Vice President of Facilities & Administration

    • Tenure: 0yrs
  • Heidi Kucher

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Michael D'Avella (60yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$89.38k
  • Michael Boychuk (63yo)

    Director

    • Tenure: 0.7yrs
  • John Frascotti (58yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: CA$119.64k
  • Cathy Roozen (63yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: CA$102.50k
  • Heather Shaw (59yo)

    Executive Chairman

    • Tenure: 20yrs
    • Compensation: CA$1.75m
  • Julie Shaw (58yo)

    Vice Chairman

    • Tenure: 11.4yrs
    • Compensation: CA$95.63k
  • Fernand Bélisle (74yo)

    Independent Lead Director

    • Tenure: 0yrs
    • Compensation: CA$90.00k
  • Doug Murphy (56yo)

    President

    • Tenure: 4.5yrs
    • Compensation: CA$4.06m
  • Mark Hollinger (60yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: CA$112.15k
  • Barry James (61yo)

    Independent Director

    • Tenure: 5.7yrs
    • 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$1.134b
  • Shares outstanding: 212.00m
  • 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 through two segments, Televisio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:34
End of Day Share Price2019/09/18 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.