TSX:SJR.B

Stock Analysis Report

Shaw Communications

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.


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


Market Performance


7 Day Return

0.6%

SJR.B

0.2%

CA Media

-0.2%

CA Market


1 Year Return

4.0%

SJR.B

14.4%

CA Media

1.1%

CA Market

Return vs Industry: SJR.B underperformed the Canadian Media industry which returned 14.4% over the past year.

Return vs Market: SJR.B exceeded the Canadian Market which returned 1.1% over the past year.


Shareholder returns

SJR.BIndustryMarket
7 Day0.6%0.2%-0.2%
30 Day-2.2%-1.0%-2.9%
90 Day2.8%1.9%-1.6%
1 Year8.8%4.0%18.9%14.4%4.6%1.1%
3 Year13.7%-0.4%30.2%15.1%13.1%3.1%
5 Year17.0%-6.2%29.1%2.5%24.7%6.7%

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?

17.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SJR.B (CA$26.22) is trading above our estimate of fair value (CA$17.88)

Significantly Undervalued: SJR.B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SJR.B is poor value based on its PE Ratio (17.1x) compared to the Media industry average (14.1x).

PE vs Market: SJR.B is poor value based on its PE Ratio (17.1x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SJR.B's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SJR.B is overvalued based on its PB Ratio (2.3x) 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?

-9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJR.B's earnings are forecast to decline over the next 3 years (-9.4% per year).

Earnings vs Market: SJR.B's earnings are forecast to decline over the next 3 years (-9.4% per year).

High Growth Earnings: SJR.B's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SJR.B's revenue (3.6% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: SJR.B's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SJR.B's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Shaw Communications performed over the past 5 years?

-18.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SJR.B's earnings have declined by -18.9% per year over the past 5 years.

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

Earnings vs Industry: SJR.B has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (-32.2%).


Return on Equity

High ROE: SJR.B's Return on Equity (12.7%) is considered low.


Return on Assets

ROA vs Industry: SJR.B's Return on Assets is below or equal to the Media industry average last year.


Return on Capital Employed

ROCE Improving: SJR.B has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Shaw Communications's financial position?


Financial Position Analysis

Short Term Liabilities: SJR.B's short term assets (CA$2.1B) do not cover its short term liabilities (CA$2.8B)

Long Term Liabilities: SJR.B's short term assets (2.1B) do not cover its long term liabilities (6.5B)


Debt to Equity History and Analysis

Debt Level: SJR.B's debt to equity ratio (85.8%) is considered high

Reducing Debt: SJR.B's debt to equity ratio has reduced from 96.2% to 85.8% over the past 5 years.

Debt Coverage: SJR.B's debt is well covered by operating cash flow (29.7%).

Interest Coverage: SJR.B's interest payments on its debt are well covered by EBIT (4.5x 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 0.4x debt).


Next Steps

Dividend

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

4.52%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company4.5%marketbottom25%2.0%markettop25%6.0%industryaverage3.1%forecastin3Years4.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SJR.B's dividend (4.52%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: SJR.B's dividend (4.52%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).

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 (77.1%), 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 (80% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Brad Shaw (55yo)

8.9yrs

Tenure

CA$7,574,173

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 ($USD5.77M) is about average for companies of similar size in the Canadian market ($USD7.04M).

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


Management Age and Tenure

2.0yrs

Average Tenure

55yo

Average Age

Experienced Management: SJR.B's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Age and Tenure

18.8yrs

Average Tenure

72.5yo

Average Age

Experienced Board: SJR.B's board of directors are seasoned and experienced ( 18.8 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$704,21117 Apr 19
Zoran Stakic
EntityIndividual
Role
Chief Operating Officer
COO & CTO
Shares29,651
Max PriceCA$23.75
SellCA$675,25018 Feb 19
Willard Yuill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceCA$27.01
SellCA$181,78518 Dec 18
Carl Vogel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceCA$24.24
SellCA$635,00018 Dec 18
Willard Yuill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceCA$25.40
SellCA$1,265,23211 Dec 18
Willard Yuill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$25.36
SellCA$189,19511 Dec 18
Carl Vogel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceCA$25.23
SellCA$501,73220 Nov 18
Carl Vogel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceCA$25.10

Ownership Breakdown


Management Team

  • JR Shaw (85yo)

    Founder & Executive Chairman

    • Tenure: 0yrs
    • Compensation: CA$7.05m
  • Brad Shaw (55yo)

    CEO & Non-Independent Director

    • Tenure: 8.9yrs
    • Compensation: CA$7.57m
  • Zoran Stakic

    COO & CTO

    • Tenure: 1.4yrs
    • Compensation: CA$5.98m
  • Nancy Phillips

    CEO & President of ViaWest

    • Tenure: 0yrs
  • Dan Markou

    Executive VP and Chief People & Culture Officer

    • Tenure: 1.4yrs
  • Peter Johnson

    Executive VP and Chief Legal & Regulatory Officer

    • Tenure: 3.6yrs
  • Jay Mehr

    President

    • Tenure: 3.6yrs
    • Compensation: CA$7.24m
  • Katherine Emberly

    President of Business

    • Tenure: 1.4yrs
  • Trevor English (45yo)

    Executive VP and Chief Financial & Corporate Development Officer

    • Tenure: 1.4yrs
    • Compensation: CA$3.50m
  • Paul McAleese

    President of Wireless

    • Tenure: 2.5yrs

Board Members

  • JR Shaw (85yo)

    Founder & Executive Chairman

    • Tenure: 0yrs
    • Compensation: CA$7.05m
  • Peter Bissonnette (72yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: CA$12.79m
  • Mike O'Brien (74yo)

    Independent Corporate Director

    • Tenure: 16yrs
    • Compensation: CA$312.92k
  • Carl Vogel (62yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: CA$265.10k
  • J. Sparkman (87yo)

    Independent Corporate Director

    • Tenure: 25.8yrs
    • Compensation: CA$296.66k
  • Jeff Royer (64yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: CA$304.88k
  • Brad Shaw (55yo)

    CEO & Non-Independent Director

    • Tenure: 8.9yrs
    • Compensation: CA$7.57m
  • Bill Yuill (81yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: CA$247.74k
  • Adrian Burns (73yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: CA$274.75k
  • Paul Pew (55yo)

    Lead Director

    • Tenure: 4.8yrs
    • Compensation: CA$404.71k

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$13.537b
  • Shares outstanding: 515.97m
  • 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 WiFi, vi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:39
End of Day Share Price2019/10/18 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.