TSX:SJR.B

Stock Analysis Report

Shaw Communications

Executive Summary

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


Snowflake Analysis

Established dividend payer with proven 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

SJR.B

-2.4%

CA Media

-3.8%

CA Market


1 Year Return

-8.2%

SJR.B

2.3%

CA Media

0.5%

CA Market

Return vs Industry: SJR.B underperformed the Canadian Media industry which returned 2.3% over the past year.

Return vs Market: SJR.B underperformed the Canadian Market which returned 0.5% over the past year.


Shareholder returns

SJR.BIndustryMarket
7 Day-3.8%-2.4%-3.8%
30 Day-6.0%-4.1%-2.0%
90 Day-9.5%-7.2%-0.3%
1 Year-4.1%-8.2%5.9%2.3%3.7%0.5%
3 Year2.7%-10.1%19.3%5.5%13.6%3.4%
5 Year7.0%-14.4%19.4%-4.5%30.2%11.2%

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?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SJR.B (CA$24.83) is trading below our estimate of fair value (CA$40.02)

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 (18.3x) compared to the Media industry average (9x).

PE vs Market: SJR.B is poor value based on its PE Ratio (18.3x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: SJR.B is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: SJR.B is overvalued based on its PB Ratio (2.1x) compared to the CA Media industry average (0.7x).


Next Steps

Future Growth

How is Shaw Communications forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJR.B's forecast earnings growth (5.1% per year) is above the savings rate (1.4%).

Earnings vs Market: SJR.B's earnings (5.1% per year) are forecast to grow slower than the Canadian market (11.2% per year).

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

Revenue vs Market: SJR.B's revenue (2.5% per year) is forecast to grow slower than the Canadian market (4.7% per year).

High Growth Revenue: SJR.B's revenue (2.5% 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 (11.7%).


Next Steps

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%) are higher than last year (1.9%).


Past Earnings Growth Analysis

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

Accelerating Growth: SJR.B's earnings growth over the past year (598%) exceeds its 5-year average (-9.5% per year).

Earnings vs Industry: SJR.B earnings growth over the past year (598%) exceeded the Media industry 5.3%.


Return on Equity

High ROE: SJR.B's Return on Equity (11.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shaw Communications's financial position?


Financial Position Analysis

Short Term Liabilities: SJR.B's short term assets (CA$899.0M) do not cover its short term liabilities (CA$1.6B).

Long Term Liabilities: SJR.B's short term assets (CA$899.0M) do not cover its long term liabilities (CA$7.8B).


Debt to Equity History and Analysis

Debt Level: SJR.B's debt to equity ratio (66.5%) is considered high.

Reducing Debt: SJR.B's debt to equity ratio has reduced from 108.4% to 66.5% over the past 5 years.

Debt Coverage: SJR.B's debt is well covered by operating cash flow (38.7%).

Interest Coverage: SJR.B's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: SJR.B has a high level of physical assets or inventory.

Debt Coverage by Assets: SJR.B's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

4.77%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Shaw Communications before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.8%marketbottom25%2.0%markettop25%5.7%industryaverage3.2%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: SJR.B's dividend (4.77%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: SJR.B's dividend (4.77%) is low compared to the top 25% of dividend payers in the Canadian market (5.7%).


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 (87.2%), SJR.B's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SJR.B's dividends in 3 years are forecast to be covered by earnings (81.4% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Brad Shaw (55yo)

9.3yrs

Tenure

CA$11,986,921

Compensation

Mr. Bradley S. Shaw, also known as Brad, has been the Chief Executive Officer of Shaw Communications Inc. since November 17, 2010. Mr. Shaw served as Senior Vice President of Operations at Shaw Communicati ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD9.02M) is above average for companies of similar size in the Canadian market ($USD6.83M).

Compensation vs Earnings: Brad's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Shaw
Founder & Executive Chairman0yrsCA$8.21m3.64% CA$473.7m
Bradley Shaw
CEO & Non-Independent Director9.3yrsCA$11.99m1.41% CA$183.5m
Jay Mehr
President3.9yrsCA$9.19mno data
Trevor English
Executive VP and Chief Financial & Corporate Development Officer1.8yrsCA$4.71m0.0067% CA$875.9k
Paul McAleese
President of Wireless2.8yrsCA$4.73m0.00030% CA$39.0k
Zoran Stakic
COO & CTO1.8yrsCA$5.98mno data
Peter Johnson
Executive VP and Chief Legal & Regulatory Officer3.9yrsno data0.0094% CA$1.2m
Katherine Emberly
President of Business1.8yrsno data0.0024% CA$307.2k
Dan Markou
Executive VP and Chief People & Culture Officer1.8yrsno data0.0027% CA$350.1k
Nancy Phillips
CEO & President of ViaWest0yrsno datano data

2.3yrs

Average Tenure

55yo

Average Age

Experienced Management: SJR.B's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Shaw
Founder & Executive Chairman0yrsCA$8.21m3.64% CA$473.7m
Bradley Shaw
CEO & Non-Independent Director9.3yrsCA$11.99m1.41% CA$183.5m
Peter Bissonnette
Independent Director11.1yrsCA$176.17k0.080% CA$10.5m
Michael O'Brien
Independent Corporate Director16.3yrsCA$239.50k0.0067% CA$877.2k
Carl Vogel
Independent Director13.3yrsCA$246.88k0.0068% CA$881.1k
J. Sparkman
Independent Corporate Director26.1yrsCA$243.60k0.013% CA$1.7m
Jeffrey Royer
Independent Director25.1yrsCA$181.17k0.46% CA$59.9m
Willard Yuill
Independent Director21.1yrsCA$195.42k0.70% CA$90.6m
Adrian Burns
Independent Director19.1yrsCA$183.17k0.0017% CA$216.1k
Paul Pew
Lead Director5.1yrsCA$348.67k0.025% CA$3.2m

19.1yrs

Average Tenure

72.5yo

Average Age

Experienced Board: SJR.B's board of directors are seasoned and experienced ( 19.1 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 only sold shares 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$13.015b
  • Shares outstanding: 516.67m
  • Website: https://www.shaw.ca

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SJRNYSE (New York Stock Exchange)YesClass B Non-Voting SharesUSUSDMar 1983
SJR.BTSX (The Toronto Stock Exchange)YesClass B Non-Voting SharesCACADMar 1983
SWCDB (Deutsche Boerse AG)YesClass B Non-Voting SharesDEEURMar 1983
SJR.ATSXV (TSX Venture Exchange)Class A SharesCACADSep 1988
SJRW.FOTCPK (Pink Sheets LLC)Class A SharesUSUSDSep 1988
SJR.PRATSX (The Toronto Stock Exchange)CV PFD CL 2-ACACADMay 2011
SJR.PRBTSX (The Toronto Stock Exchange)PFD CL 2 SER BCACADJul 2016

Biography

Shaw Communications Inc. operates as a connectivity company in North America. The company operates through Wireline and Wireless segments. The Wireline segment provides broadband Internet, Shaw Go Wi-Fi, video, and digital phone services to residential customers; and Internet, data, Wi-Fi, digital phone, and video services to business customers. The Wireless segment provides wireless voice and data communications services. The company was formerly known as Shaw Cablesystems Ltd. and changed its name to Shaw Communications Inc. in May 1993. Shaw Communications Inc. was founded in 1966 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:08
End of Day Share Price2020/02/25 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.