Dividend Stock Wednesday: Shaw Communications (SJR.B-TSX)
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This week’s dividend stock Wednesday is going to look at Canadian communications company Shaw Communications. Every month I send a nice big check to Shaw for my digital cable, phone service, and high speed internet. I see from previous press releases that the company has started to increase its dividend so I wanted to see how the company stacks up to my personal analysis template. This is the result of that analysis.
The Company: Shaw Communications (SJR.B-TSX)
SHAW COMMUNICATIONS INC. is a diversified communications company whose core business is providing broadband cable television, High-Speed Internet, Digital Phone, telecommunications services (through Shaw Business Solutions) and satellite direct-to-home services (through Star Choice).
| No | |
| No |
THE FUNDAMENTALS
Revenue
Click to EnlargeRevenue Scoring
| Criteria | Scoring |
| Consistenly Up with No Down Years | 1.0 |
| Up Trend with < 2 Down Years | 0.5 |
| Choppy with > 2 Down Years | 0.0 |
| My Revenue Score | 0.0 |
Earnings Per Share
Click to EnlargeEarnings Per Share Scoring
| Criteria | Scoring |
| Consistenly Up with No Down Years | 1.0 |
| Up Trend with < 2 Down Years | 0.5 |
| Choppy with > 2 Down Years | 0.0 |
| My EPS Score | 0.0 |
TOTAL FUNDAMENTALS SCORE: 0.0
THE RATIOS
Return on Equity
Click to EnlargeReturn on Equity Scoring
| Criteria | Scoring |
| Above 15% for Last 5 Years | 1.0 |
| At Least One Year Below 15% in Last 5 Years | 0.0 |
| My ROE Score | 0.0 |
Other Ratios
| Ratio | Criteria | Value | Score (Pass=1 / Fail = 0) |
| Debt to Equity | < 0.50 | 1.54 | 0.0 |
| Payout Ratio | < 60% | 51% | 1.0 |
| Credit Rating | > BBB+ | BB+ | 0.0 |
| Total Ratio Score | 1.0 |
TOTAL RATIOS SCORE: 1.0
DIVIDEND DATA
Annual Dividends
Click to EnlargeDividend Scoring
| Criteria | Scoring |
| 25+ Years of Dividend Growth | 1.0 |
| 10+ Years of Dividend Growth | 1.0 |
| < 10 Years of Dividend Growth | 0.0 |
| My Dividend Growth Score | 0.0 |
TOTAL DIVIDEND GROWTH SCORE: 0.0
STOCK VALUATION
| Valuation Metric | Criteria | Value | Score (Pass=1 / Fail = 0) |
| Dividend Yield | Cur Yld > 10 Yr Avg Yld | 0.8% | 1.0 |
| Div Yld Compared to SPY Div Yld | Cur Yld > SPY Yld | 2.3% | 1.0 |
| P/E Ratio | Cur P/E < 10 Yr Avg P/E | 41.2 | 1.0 |
| Relative P/E | Relative P/E < 1.0 | 0.28 | 1.0 |
| Price to Sales | < 1.5 | 3.31 | 0.0 |
| Total Ratio Score | 4.0 |
Canadian Shareowner’s Association Stock Selection Guide Software Buy Price
| Buy Zone |
Maybe Zone |
Sell Zone |
Current Price | Rating | Scoring (Buy=1.0, Other=0.0) |
| 0.0 |
TOTAL STOCK VALUATION SCORE: 4.0
SUMMARY
Points Earned:
5 out of 14
The stock is rated LOW with 5 points earned through my analysis of the stock. This is not a great score as the company has had difficulty delivering consistent results over the past 10 years. In addition, Shaw Communication operates under a dual share structure, meaning that the public can buy one type of shares, and the Shaw family holds the other shares. I am very leery of this as the family has ultimate power to operate the company in any way they wish, including ways that works in their best interests as opposed to those of the public shareholders. As a result, I will not buy shares in Shaw until they remove the dual class structure, which I do not anticipate to be any time soon.
| Rating | Points Required |
| High | 11+ points |
| Medium | 8-10 points |
| Low | < 8 points |
Reminder: This is an analysis completed by The Dividend Guy. It is not to be used as investment advice or a recommendation to buy, hold, or sell any stocks discussed. Please ensure you complete your own analysis.
The Dividend Guy does not own shares in Shaw Communications
3 Comments on this post
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Dividends4Life said:
It is good to have you back! We missed your daily posts.
Best Wishes,
D4LFebruary 20th, 2008 at 9:42 am -
Dividend growth investor said:
Good to see you back. I am glad you will have more time for the blog now.
February 21st, 2008 at 8:44 am -
scott r brown said:
Im 43 and new to the market i stumbled upon your site while researching and find it very informative.Im reading everything possible and want to thankyou for giving your analysis on the market.Didnt know you were gone but if you leave again i certainly will.Cheers.
June 29th, 2009 at 2:23 pm
