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Shaw Communications

Market Cap

CA$18.0b

Last Updated

2021/05/16 22:09 UTC

Data Sources

Company Financials +

Executive Summary

Shaw Communications Inc. operates as a connectivity company in North America. More Details


Snowflake Analysis

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Shaw Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SJR.B is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: SJR.B's weekly volatility has increased from 6% to 12% over the past year, but is still lower than 75% of Canadian stocks.


Market Performance


7 Day Return

0.4%

SJR.B

0.2%

CA Media

-0.7%

CA Market


1 Year Return

61.1%

SJR.B

39.2%

CA Media

39.3%

CA Market

Return vs Industry: SJR.B exceeded the Canadian Media industry which returned 39.2% over the past year.

Return vs Market: SJR.B exceeded the Canadian Market which returned 39.3% over the past year.


Shareholder returns

SJR.BIndustryMarket
7 Day0.4%0.2%-0.7%
30 Day3.0%-0.3%1.0%
90 Day59.5%24.7%6.1%
1 Year69.0%61.1%44.3%39.2%43.8%39.3%
3 Year57.7%37.2%52.8%37.4%28.6%16.4%
5 Year83.5%46.1%72.8%43.4%58.6%34.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shaw Communications undervalued compared to its fair value and its price relative to the market?

24.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SJR.B (CA$36.05) is trading below our estimate of fair value (CA$47.78)

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


Price To Earnings Ratio

PE vs Industry: SJR.B is poor value based on its PE Ratio (25.2x) compared to the Canadian Media industry average (11.6x).

PE vs Market: SJR.B is poor value based on its PE Ratio (25.2x) compared to the Canadian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: SJR.B is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: SJR.B is overvalued based on its PB Ratio (3.1x) compared to the CA Media industry average (1.4x).


Future Growth

How is Shaw Communications forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJR.B's forecast earnings growth (5.4% per year) is above the savings rate (1.5%).

Earnings vs Market: SJR.B's earnings (5.4% per year) are forecast to grow slower than the Canadian market (13.6% per year).

High Growth Earnings: SJR.B's earnings are forecast to grow, but not significantly.

Revenue vs Market: SJR.B's revenue (2.9% per year) is forecast to grow slower than the Canadian market (6.4% per year).

High Growth Revenue: SJR.B's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SJR.B's Return on Equity is forecast to be low in 3 years time (11.9%).


Past Performance

How has Shaw Communications performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SJR.B has high quality earnings.

Growing Profit Margin: SJR.B's current net profit margins (13.5%) are higher than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: SJR.B's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: SJR.B's earnings growth over the past year (2.5%) is below its 5-year average (9.5% per year).

Earnings vs Industry: SJR.B earnings growth over the past year (2.5%) underperformed the Media industry 15.4%.


Return on Equity

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


Financial Health

How is Shaw Communications's financial position?


Financial Position Analysis

Short Term Liabilities: SJR.B's short term assets (CA$1.2B) do not cover its short term liabilities (CA$1.6B).

Long Term Liabilities: SJR.B's short term assets (CA$1.2B) do not cover its long term liabilities (CA$8.3B).


Debt to Equity History and Analysis

Debt Level: SJR.B's debt to equity ratio (78.7%) is considered high.

Reducing Debt: SJR.B's debt to equity ratio has reduced from 101.7% to 78.7% over the past 5 years.

Debt Coverage: SJR.B's debt is well covered by operating cash flow (42%).

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


Balance Sheet


Dividend

What is Shaw Communications's current dividend yield, its reliability and sustainability?

3.29%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 17 2021Ex Dividend DateJun 14 2021Dividend Pay DateJun 29 202115 days from Ex DividendBuy in the next 28 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SJR.B's dividend (3.29%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).

High Dividend: SJR.B's dividend (3.29%) is low compared to the top 25% of dividend payers in the Canadian market (4.53%).


Stability and Growth of Payments

Stable Dividend: SJR.B's dividends per share have been stable in the past 10 years.

Growing Dividend: SJR.B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83%), SJR.B's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SJR.B's dividends in 3 years are not forecast to be well covered by earnings (90% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Brad Shaw (56 yo)

10.5yrs

Tenure

CA$6,867,658

Compensation

Mr. Bradley S. Shaw, also known as Brad, serves as Executive Chairman at Shaw Communications Inc. since March 23, 2020, and has been its Chief Executive Officer since November 17, 2010. Mr. Shaw served as ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD5.67M) is about average for companies of similar size in the Canadian market ($USD6.59M).

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


Leadership Team

Experienced Management: SJR.B's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: SJR.B's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SJR.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.


Top Shareholders

Company Information

Shaw Communications Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shaw Communications Inc.
  • Ticker: SJR.B
  • Exchange: TSX
  • Founded: 1966
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: CA$17.977b
  • Shares outstanding: 498.66m
  • Website: https://www.shaw.ca

Number of Employees


Location

  • Shaw Communications Inc.
  • 630–3rd Avenue SW
  • Suite 900
  • Calgary
  • Alberta
  • T2P 4L4
  • Canada

Listings


Biography

Shaw Communications Inc. operates as a connectivity company in North America. The company operates through Wireline and Wireless segments. The Wireline segment provides cable telecommunications services, i...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 22:09
End of Day Share Price2021/05/14 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


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.