Shaw Communications Story

SJR -- USA Stock

USD 17.49 0.29 1.63%

Macroaxis Story

Shaw Communications is scheduled to announce its earnings tomorrow. As many baby boomers are still indifferent towards communication services space, it makes sense to sum up Shaw Communications as a unique choice for millenniums. We will check if the company can maintain a respectable level of debt while minimizing operating losses.

Published over a week ago

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Will Shaw Communications (NYSE:SJR) investors stop to exit in February?

The company has 3.27 B in debt with debt to equity (D/E) ratio of 0.97, which is OK given its current industry classification. Shaw Communications has a current ratio of 0.87, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. About 67.0% of the company shares are owned by institutional investors. The book value of Shaw Communications was at this time reported as 8.4. Shaw Communications has Price/Earnings (P/E) ratio of 244.32. The entity last dividend was issued on the 14th of January 2021. The firm had 2:1 split on the 3rd of August 2007.

Shaw Communications financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Shaw Communications, including all of Shaw Communications's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Shaw Communications assets, the company is considered highly leveraged. Understanding the composition and structure of overall Shaw Communications debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

How important is Shaw Communications's Liquidity

Shaw Communications financial leverage refers to using borrowed capital as a funding source to finance Shaw Communications ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Shaw Communications financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Shaw Communications's total debt and its cash.

How Shaw Communications utilizes its cash?

To perform a cash flow analysis of Shaw Communications, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Shaw Communications is receiving and how much cash it distributes out in a given period. The Shaw Communications cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking down Shaw Communications Indicators

The entity reported the last year's revenue of 3.94 B. Total Income to common stockholders was 43.6 M with profit before taxes, overhead, and interest of 2.38 B.

Shaw Communications has a fair chance to close above $17.38 mark in February

Latest Treynor Ratio is up to -0.03. Price may fall again. Shaw Communications exhibits very low volatility with skewness of -0.27 and kurtosis of 0.31. However, we advise investors to further study Shaw Communications technical indicators to make sure all market info is available and is reliable.

The Current Takeaway on Shaw Communications Investment

While other entities in the telecom services industry are either recovering or due for a correction, Shaw Communications may not be performing as strong as the other in terms of long-term growth potentials. While some retail investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Shaw Communications.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Shaw Communications. Please refer to our Terms of Use for any information regarding our disclosure principles.

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