Shaw Communications Story

SJR -- USA Stock

USD 17.78 0.09 0.51%

Macroaxis Story

Shaw Communications is scheduled to announce its earnings today. While many traders are getting carried away by overanalyzing communication services space, it is reasonable to sum up Shaw Communications as an investment alternative. Here we also measure the ability of Shaw Communications to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.

Published over a week ago

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Continue to hold Shaw Communications (NYSE:SJR) based on its current debt obligations?

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.

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 is epected to finish above $17.34 in February

The standard deviation is down to 1.25 as of today. As of the 13th of January 2021, Shaw Communications has the coefficient of variation of (4,653), and Risk Adjusted Performance of (0.019761). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Shaw Communications, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Shaw Communications, which can be compared to its competition. Please validate Shaw Communications mean deviation, information ratio, as well as the relationship between the Information Ratio and downside variance to decide if Shaw Communications is priced more or less accurately, providing market reflects its prevalent price of 17.69 per share. Given that Shaw Communications has jensen alpha of (0.14), we advise you to double-check Shaw Communications's current market performance to make sure the company can sustain itself at a future point.

Our Final Take On Shaw Communications

When is the right time to buy or sell Shaw Communications? Buying stocks such as Shaw Communications isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis. To sum up, as of the 13th of January 2021, our ongoing 30 days buy-hold-sell advice on the enterprise is Strong Hold. We believe Shaw Communications is undervalued with below average chance of bankruptcy for the next two years.

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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