Shaw Communications Inc

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SJR : NYSE : Services
$20.40 up 0.27 | 1.34%
Today's Range: 20.14 - 20.48
Avg. Daily Volume: 460,300
09/29/16 - 4:02 PM ET

Financial Analysis


SHAW COMMUNICATIONS INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. SHAW COMMUNICATIONS INC has very weak liquidity. Currently, the Quick Ratio is 0.35 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 20.58% 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 FY16 Q3 FY15
Net Sales ($mil)1299.01154.0
EBITDA ($mil)534.0504.0
EBIT ($mil)305.0313.0
Net Income ($mil)700.0202.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)324.0282.0
Total Assets ($mil)15074.014565.0
Total Debt ($mil)5600.05617.0
Equity ($mil)6250.05183.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin41.1143.67
EBITDA Margin41.143.67
Operating Margin23.4827.12
Sales Turnover0.330.32
Return on Assets8.875.29
Return on Equity9.1211.42
Debt Q3 FY16 Q3 FY15
Current Ratio0.480.52
Debt/Capital0.470.52
Interest Expense80.070.0
Interest Coverage3.814.47


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)483.55472.02
Div / share0.230.24
EPS0.110.28
Book value / share12.9310.98
Institutional Own % n/a n/a
Avg Daily Volume479740.0587795.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 22.94 for the Media industry and a discount compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 1.56 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 3.20. 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 16.85 Peers 22.94   SJR 5.96 Peers 11.47

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SJR is trading at a significant discount to 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 23.61   SJR NA Peers 1.19

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 1.56 Peers 3.20   SJR -5.52 Peers 15.62

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 1.96 Peers 6.85   SJR 6.36 Peers 12.04

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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