Shaw Communications Inc

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SJR : NYSE : Services
$21.0 -0.3 | -1.4%
Today's Range: 20.94 - 21.27
Avg. Daily Volume: 380500.0
01/18/17 - 2:16 PM ET

Financial Analysis


SHAW COMMUNICATIONS INC's gross profit margin for the first quarter of its fiscal year 2017 has decreased 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.40% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)1327.01163.0
EBITDA ($mil)519.0486.0
EBIT ($mil)284.0285.0
Net Income ($mil)89.0210.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)289.0283.0
Total Assets ($mil)15391.014574.0
Total Debt ($mil)5659.05683.0
Equity ($mil)5733.05544.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin39.1141.79
EBITDA Margin39.1141.78
Operating Margin21.424.51
Sales Turnover0.330.32
Return on Assets7.145.81
Return on Equity6.911.58
Debt Q1 FY17 Q1 FY16
Current Ratio0.430.52
Debt/Capital0.50.51
Interest Expense74.075.0
Interest Coverage3.843.8


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)488.26475.92
Div / share0.220.22
EPS0.180.28
Book value / share11.7411.65
Institutional Own % n/a n/a
Avg Daily Volume378624.0397470.0

Valuation


HOLD. SHAW COMMUNICATIONS INC's P/E ratio indicates a discount compared to an average of 30.44 for the Media industry and a value on par with the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 1.79 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 3.52. 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 25.70 Peers 30.44   SJR 6.35 Peers 11.62

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

SJR is trading at a 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 79.83   SJR NA Peers 2.49

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 1.79 Peers 3.52   SJR -39.71 Peers 58.62

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 2.01 Peers 6.61   SJR 11.02 Peers 16.44

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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