Shaw Communications Inc Stock Analysis:
Analysts rate Shaw Communications Inc. with a consensus Buy rating and a 12-month average target price of $38.79 per share.
Based on the Shaw Communications Inc stock forecasts from 6 analysts, the average analyst target price for Shaw Communications Inc is CAD 38.79 over the next 12 months. Shaw Communications Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Shaw Communications Inc is Neutral, which is based on 8 positive signals and 8 negative signals. At the last closing, Shaw Communications Inc’s stock price was CAD 33.43. Shaw Communications Inc’s stock price has changed by -0.65% over the past week, -4.32% over the past month and -9.03% over the last year.
About Shaw Communications Inc (SJR-B:CA:TSX)
Shaw Communications Inc. operates as a connectivity company in North America. The company operates through Wireline and Wireless segments. The company’s Wireline segment provides cable telecommunications services, including video, Internet, WiFi, phone, satellite video, and data networking through a national fibre-optic backbone network to Canadian consumers, North American businesses, and public-sector entities. Its Wireless segment provides wireless services for voice and data communications serving customers in Ontario, British Columbia, and Alberta through Freedom Mobile; and in British Columbia and Alberta through Shaw Mobile. The company was formerly known as Shaw Cablesystems Ltd. and changed its name to Shaw Communications Inc. in May 1993. Shaw Communications Inc. was incorporated in 1966 and is headquartered in Calgary, Canada.
What we like:
Superior total returns
The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.
Superior return on equity
The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior capital utilization
The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
High Gross Profit to Asset Ratio
This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.
What we don’t like:
Low market capitalization
This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced compared to book value
The stock is trading high compared to its peers median on a price to book value basis.
Overpriced on cashflow basis
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Poor return on assets
The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.
Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Low Earnings Growth
This stock has shown below median earnings growth in the previous 5 years compared to its sector.