Shaw Communications (Shaw Communications) Beneish M-Score : -2.55 (As of May. 06, 2024)

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What is Shaw Communications Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Shaw Communications's Beneish M-Score or its related term are showing as below:

SJR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39 Med: -2.72 Max: 2.56
Current: -2.55

During the past 13 years, the highest Beneish M-Score of Shaw Communications was 2.56. The lowest was -3.39. And the median was -2.72.

Shaw Communications Beneish M-Score Historical Data

The historical data trend for Shaw Communications's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Shaw Communications Beneish M-Score Chart

Shaw Communications Annual Data

Trend

Aug13

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Beneish M-Score

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-2.25

-2.52

-2.67

-1.94

-2.69

Shaw Communications Quarterly Data
	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22
Beneish M-Score	Get a 7-Day Free Trial															-2.02	2.56	-2.38	-2.69	-2.55

Competitive Comparison of Shaw Communications's Beneish M-Score

For the Telecom Services subindustry, Shaw Communications's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Shaw Communications's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Shaw Communications's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Shaw Communications's Beneish M-Score falls into.

Shaw Communications Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Shaw Communications for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0492

0.528 * 1.1688

0.404 * 1.0009

0.892 * 0.9462

0.115 * 0.9508

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5389

4.679 * -0.0688

0.327 * 0.9659

-2.63

This Year (Nov22) TTM:

Last Year (Nov21) TTM:

Total Receivables was $501 Mil.
Revenue was 1018.058 + 1050.554 + 1046.738 + 1069.153 = $4,185 Mil.
Gross Profit was 581.11 + 610.823 + 631.464 + 630.95 = $2,454 Mil.
Total Current Assets was $923 Mil.
Total Assets was $11,691 Mil.
Property, Plant and Equipment(Net PPE) was $4,368 Mil.
Depreciation, Depletion and Amortization(DDA) was $956 Mil.
Selling, General, & Admin. Expense(SGA) was $515 Mil.
Total Current Liabilities was $1,357 Mil.
Long-Term Debt & Capital Lease Obligation was $3,747 Mil.
Net Income was 124.842 + 130.835 + 157.866 + 154.197 = $568 Mil.
Non Operating Income was -11.89 + -7.742 + -2.333 + -3.934 = $-26 Mil.
Cash Flow from Operations was 252.657 + 323.605 + 438.603 + 383.133 = $1,398 Mil.

Total Receivables was $504 Mil.
Revenue was 1102.889 + 1092.944 + 1134.021 + 1092.47 = $4,422 Mil.
Gross Profit was 634.201 + 625.446 + 679.588 + 1092.47 = $3,032 Mil.
Total Current Assets was $921 Mil.
Total Assets was $12,458 Mil.
Property, Plant and Equipment(Net PPE) was $4,723 Mil.
Depreciation, Depletion and Amortization(DDA) was $972 Mil.
Selling, General, & Admin. Expense(SGA) was $1,009 Mil.
Total Current Liabilities was $1,132 Mil.
Long-Term Debt & Capital Lease Obligation was $4,498 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(500.855 / 4184.503)	/	(504.496 / 4422.324)
	=	0.119693	/	0.114079
	=	1.0492

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(3031.705 / 4422.324)	/	(2454.347 / 4184.503)
	=	0.685546	/	0.586532
	=	1.1688

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (922.94 + 4367.987) / 11691.313)	/	(1 - (920.665 + 4723.482) / 12458.025)
	=	0.547448	/	0.546947
	=	1.0009

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	4184.503	/	4422.324
	=	0.9462

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(972.472 / (972.472 + 4723.482))	/	(955.949 / (955.949 + 4367.987))
	=	0.17073	/	0.179557
	=	0.9508

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(514.742 / 4184.503)	/	(1009.447 / 4422.324)
	=	0.123012	/	0.228262
	=	0.5389

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((3746.749 + 1356.915) / 11691.313)	/	((4498.289 + 1132.331) / 12458.025)
	=	0.436535	/	0.451967
	=	0.9659

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(567.74 - -25.899	-	1397.998)	/	11691.313
	=	-0.0688

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Shaw Communications has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.

Shaw Communications Beneish M-Score Related Terms

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Shaw Communications (Shaw Communications) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Shaw Communications Inc (NYSE:SJR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

630 - 3rd Avenue S.W., Suite 900, Finance Department, Calgary, AB, CAN, T2P 4L4

Website

https://www.shaw.ca

Shaw Communications is a Canadian cable company that is one of the biggest providers of internet, television, and landline telephone services in British Columbia, Alberta, Saskatchewan, Manitoba, and northern Ontario. In fiscal 2021, more than 75% of Shaw's total revenue resulted from this wireline business. Shaw now also offers wireless service over most of Canada's population footprint after acquiring Wind Mobile in 2016. As a smaller carrier, Shaw has favored bidding status in spectrum auctions, giving it a further boost in enhancing its wireless network. At the 2019 auction, Shaw added significant amounts of 600 MHz spectrum to the 700 MHz spectrum it is currently deploying.