Shaw Communications Inc

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SJR : NYSE : Services
$22.18 up 0.06 | 0.27%
Today's Range: 21.995 - 22.2
Avg. Daily Volume: 527300.0
07/21/17 - 4:02 PM ET

Financial Analysis


SHAW COMMUNICATIONS INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. SHAW COMMUNICATIONS INC has very weak liquidity. Currently, the Quick Ratio is 0.31 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 6.64% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)1321.01288.0
EBITDA ($mil)527.0533.0
EBIT ($mil)275.0304.0
Net Income ($mil)133.0704.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)175.0324.0
Total Assets ($mil)15388.015074.0
Total Debt ($mil)5568.05600.0
Equity ($mil)5835.06250.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin39.8941.38
EBITDA Margin39.8941.38
Operating Margin20.8223.6
Sales Turnover0.340.31
Return on Assets3.49.0
Return on Equity9.188.94
Debt Q3 FY17 Q3 FY16
Current Ratio0.540.48
Debt/Capital0.490.47
Interest Expense76.080.0
Interest Coverage3.623.8


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)493.37483.55
Div / share0.220.23
EPS0.330.14
Book value / share11.8312.93
Institutional Own % n/a n/a
Avg Daily Volume531027.0481681.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 20.97 for the Media industry and a discount compared to the S&P 500 average of 24.66. To use another comparison, its price-to-book ratio of 1.87 indicates a discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 3.87. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SHAW COMMUNICATIONS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SJR 20.11 Peers 20.97   SJR 6.76 Peers 11.99

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

SJR is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SJR is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SJR NA Peers 27.44   SJR NA Peers 2.17

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SJR 1.87 Peers 3.87   SJR -5.99 Peers 94.15

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SJR is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SJR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SJR 2.07 Peers 18.35   SJR 10.86 Peers 38.50

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SJR is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SJR significantly trails its peers on the basis of sales growth

 

 

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