TSX:TS.B

Stock Analysis Report

Executive Summary

Torstar Corporation operates as a media company in Canada, the United States, and internationally.

Snowflake

Fundamentals

Flawless balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.2%

TSX:TS.B

-0.009%

CA Media

-1.4%

CA Market


1 Year Return

-33.9%

TSX:TS.B

6.7%

CA Media

-4.4%

CA Market

TS.B underperformed the Media industry which returned 6.7% over the past year.

TS.B underperformed the Market in Canada which returned -4.4% over the past year.


Share holder returns

TS.BIndustryMarket
7 Day-1.2%-0.009%-1.4%
30 Day-5.7%-0.8%-2.8%
90 Day5.1%-2.4%-3.1%
1 Year-26.5%-33.9%10.7%6.7%-1.0%-4.4%
3 Year-30.1%-44.6%24.5%10.0%13.4%3.4%
5 Year-82.9%-89.2%23.2%-3.0%12.4%-3.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.42x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Torstar's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Torstar's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Torstar is loss making, we can't compare its value to the CA Media industry average.

Torstar is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

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


Price Based on Value of Assets

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


Next Steps

Future Growth

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

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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

Torstar is not considered high growth as it is expected to be loss making for the next 1-3 years.

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

Unable to compare Torstar's earnings growth to the Canada market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Torstar's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Torstar will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Torstar performed over the past 5 years?

23.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Torstar does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Torstar's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Torstar's 1-year growth to the North America Media industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Torstar has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Torstar has efficiently used its assets last year compared to the CA Media industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Torstar improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Torstar's financial position?


Financial Position Analysis

Torstar is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Torstar's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Torstar has no debt.

Torstar has no debt compared to 5 years ago when it was 23%.


Balance Sheet

Low level of unsold assets.

Torstar has no debt, it does not need to be covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Torstar has sufficient cash runway for more than 3 years based on current free cash flow.

Torstar has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -86.3% each year.


Next Steps

Dividend

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

12.20%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Torstar's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.04%).

Torstar's dividend is above the markets top 25% of dividend payers in Canada (5.97%).

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

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

The company is expected to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not expected to be well covered.


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

John Boynton (55yo)

2.4yrs

Tenure

CA$2,166,657

Compensation

Mr. John Boynton has been the Chief Executive Officer and President at Torstar Corporation since March 31, 2017. Mr. Boynton is a Publisher of the Toronto Star. He served as the Chief Marketing Officer for ...


CEO Compensation Analysis

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

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


Management Age and Tenure

4.6yrs

Average Tenure

The tenure for the Torstar management team is about average.


Board Age and Tenure

10.5yrs

Average Tenure

68yo

Average Age

The average tenure for the Torstar board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCA$20,40015 May 19
John Boynton
EntityIndividual
Role
CEO, President & Director
Member of the Board of Directors
Shares25,000
Max PriceCA$0.83
SellCA$17,90018 Mar 19
Sally Jane Booth Enterprises Inc
EntityCompany
Shares20,027
Max PriceCA$0.91
BuyCA$21,00001 Nov 18
John Boynton
EntityIndividual
Role
CEO, President & Director
Member of the Board of Directors
Shares20,000
Max PriceCA$1.05

Ownership Breakdown


Management Team

  • Marie Beyette

    Senior VP

    • Compensation: CA$674.81k
  • Ian Oliver

    Executive VP & President of Community Brands & Operations

    • Tenure: 12.9yrs
    • Compensation: CA$1.08m
  • Lorenzo DeMarchi

    Executive VP & CFO

    • Tenure: 9.8yrs
    • Compensation: CA$1.15m
  • Neil Oliver

    Executive VP & President of Daily News Brands

    • Tenure: 1.8yrs
    • Compensation: CA$684.99k
  • Jennifer Barber

    Senior VP of Finance and CFO of Community & Daily News Brands

    • Tenure: 6.8yrs
  • Fredric Karén (51yo)

    Senior Vice-President of Editorial

    • Tenure: 0.6yrs
  • John Boynton (55yo)

    CEO, President & Director

    • Tenure: 2.4yrs
    • Compensation: CA$2.17m
  • Glenda Wheeler

    Executive Administrator to CFO


Board Members

  • Marty Thall (63yo)

    Independent Director

    • Tenure: 17.3yrs
    • Compensation: CA$81.38k
  • Alnasir Samji (68yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: CA$91.63k
  • Elaine Berger (73yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: CA$70.25k
  • Paul Weiss (71yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: CA$98.25k
  • Campbell Harvey (60yo)

    Independent Director

    • Tenure: 27.3yrs
    • Compensation: CA$68.13k
  • John Boynton (55yo)

    CEO, President & Director

    • Tenure: 2.4yrs
    • Compensation: CA$2.17m
  • Linda Hughes (68yo)

    Lead Director

    • Compensation: CA$100.25k
  • Dorothy Strachan (72yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: CA$72.00k
  • Dan Jauernig (53yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: CA$75.25k
  • John Honderich (72yo)

    Chairman of the Board

    • Compensation: CA$275.00k

Company Information

Torstar Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Torstar Corporation
  • Ticker: TS.B
  • Exchange: TSX
  • Founded: 1892
  • Industry: publishing
  • Sector: media
  • Market Cap: CA$66.678m
  • Shares outstanding: 81.31m
  • Website: Click here

Number of Employees


Location

  • Torstar Corporation
  • One Yonge Street
  • Toronto
  • Ontario
  • M5E 1E6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TS.BTSX (The Toronto Stock Exchange)YesClass B SharesCACADJan 1976
TORS.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJan 1976

Biography

Torstar Corporation operates as a media company in Canada, the United States, and internationally. It operates through three segments: Community Brands, Daily Brands, and Digital Ventures. The company publ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 23:47
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.