Shaw Communications Inc.
Shaw Communications Inc. Fundamental Analysis
Shaw Communications Inc. (SJR) shows moderate financial fundamentals with a PE ratio of 26.98, profit margin of 14.02%, and ROE of 12.44%. The company generates $5.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SJR's fundamental strength across five key dimensions:
Efficiency Score
WeakSJR struggles to generate sufficient returns from assets.
Valuation Score
ModerateSJR shows balanced valuation metrics.
Growth Score
ModerateSJR shows steady but slowing expansion.
Financial Health Score
ModerateSJR shows balanced financial health with some risks.
Profitability Score
WeakSJR struggles to sustain strong margins.
Key Financial Metrics
Is SJR Expensive or Cheap?
P/E Ratio
SJR trades at 26.98 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SJR's PEG of 0.20 indicates potential undervaluation.
Price to Book
The market values Shaw Communications Inc. at 3.30 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.96 times EBITDA. This is generally considered low.
How Well Does SJR Make Money?
Net Profit Margin
For every $100 in sales, Shaw Communications Inc. keeps $14.02 as profit after all expenses.
Operating Margin
Core operations generate 23.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.44 in profit for every $100 of shareholder equity.
ROA
Shaw Communications Inc. generates $4.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shaw Communications Inc. generates strong operating cash flow of $1.82B, reflecting robust business health.
Free Cash Flow
Shaw Communications Inc. generates strong free cash flow of $729.17M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.47 in free cash annually.
FCF Yield
SJR converts 3.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SJR Stacks Against Its Sector Peers
| Metric | SJR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.98 | 21.66 | Worse (Expensive) |
| ROE | 12.44% | 1190.00% | Weak |
| Net Margin | 14.02% | -55754.00% (disorted) | Strong |
| Debt/Equity | 0.94 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 0.86 | 1.59 | Weak Liquidity |
| ROA | 4.85% | -202359.00% (disorted) | Weak |
SJR outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shaw Communications Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Technology, Streaming
EPS CAGR
N/A
Industry Style: Growth, Technology, Streaming
FCF CAGR
N/A
Industry Style: Growth, Technology, Streaming