Loading...

Stella-Jones

TSX:SJ
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SJ
TSX
CA$3B
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Stella-Jones Inc. produces, markets, and sells pressure treated wood products in Canada and the United States. The last earnings update was 4 days ago. More info.


Add to Portfolio Compare Print
SJ Share Price and Events
7 Day Returns
1.8%
TSX:SJ
-3.8%
CA Forestry
0.9%
CA Market
1 Year Returns
-8.5%
TSX:SJ
-27.1%
CA Forestry
1.2%
CA Market
SJ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Stella-Jones (SJ) 1.8% 0.4% 10% -8.5% -8.6% 37.1%
CA Forestry -3.8% -5.6% 3.2% -27.1% 10.6% 4.2%
CA Market 0.9% 2.3% 12.4% 1.2% 16.1% 5.9%
1 Year Return vs Industry and Market
  • SJ outperformed the Forestry industry which returned -27.1% over the past year.
  • SJ underperformed the Market in Canada which returned 1.2% over the past year.
Price Volatility
SJ
Industry
5yr Volatility vs Market

SJ Value

 Is Stella-Jones undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Stella-Jones to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Stella-Jones.

TSX:SJ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:SJ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Forestry Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.905 (1 + (1- 26.5%) (17.55%))
1.014
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.014 * 5.96%)
7.99%

Discounted Cash Flow Calculation for TSX:SJ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Stella-Jones is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:SJ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 7.99%)
2019 154.98 Analyst x4 143.51
2020 175.40 Analyst x4 150.40
2021 193.30 Analyst x1 153.48
2022 207.58 Est @ 7.39% 152.62
2023 219.52 Est @ 5.75% 149.45
2024 229.64 Est @ 4.61% 144.78
2025 238.40 Est @ 3.81% 139.17
2026 246.15 Est @ 3.25% 133.06
2027 253.20 Est @ 2.86% 126.74
2028 259.75 Est @ 2.59% 120.40
Present value of next 10 years cash flows CA$1,413.60
TSX:SJ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$259.75 × (1 + 1.95%) ÷ (7.99% – 1.95%)
CA$4,380.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$4,380.18 ÷ (1 + 7.99%)10
CA$2,030.29
TSX:SJ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,413.60 + CA$2,030.29
CA$3,443.89
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$3,443.89 / 69.27
CA$49.72
TSX:SJ Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$49.72
Current discount Discount to share price of CA$42.23
= -1 x (CA$42.23 - CA$49.72) / CA$49.72
15.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Stella-Jones is available for.
Intrinsic value
15%
Share price is CA$42.23 vs Future cash flow value of CA$49.72
Current Discount Checks
For Stella-Jones to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Stella-Jones's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Stella-Jones's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Stella-Jones's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Stella-Jones's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SJ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$1.98
TSX:SJ Share Price ** TSX (2019-03-19) in CAD CA$42.23
Canada Forestry Industry PE Ratio Median Figure of 10 Publicly-Listed Forestry Companies 8.05x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Stella-Jones.

TSX:SJ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SJ Share Price ÷ EPS (both in CAD)

= 42.23 ÷ 1.98

21.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Stella-Jones is overvalued based on earnings compared to the CA Forestry industry average.
  • Stella-Jones is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Stella-Jones's expected growth come at a high price?
Raw Data
TSX:SJ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
13.7%per year
Canada Forestry Industry PEG Ratio Median Figure of 8 Publicly-Listed Forestry Companies -0.31x
Canada Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.21x

*Line of best fit is calculated by linear regression .

TSX:SJ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.28x ÷ 13.7%

1.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Stella-Jones is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Stella-Jones's assets?
Raw Data
TSX:SJ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$18.50
TSX:SJ Share Price * TSX (2019-03-19) in CAD CA$42.23
Canada Forestry Industry PB Ratio Median Figure of 13 Publicly-Listed Forestry Companies 1.27x
Canada Market PB Ratio Median Figure of 2,347 Publicly-Listed Companies 1.56x
TSX:SJ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SJ Share Price ÷ Book Value per Share (both in CAD)

= 42.23 ÷ 18.50

2.28x

* Primary Listing of Stella-Jones.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Stella-Jones is overvalued based on assets compared to the CA Forestry industry average.
X
Value checks
We assess Stella-Jones's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check)
  5. Stella-Jones has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SJ Future Performance

 How is Stella-Jones expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Stella-Jones expected to grow at an attractive rate?
  • Stella-Jones's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Stella-Jones's earnings growth is positive but not above the Canada market average.
  • Stella-Jones's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SJ Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SJ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 13.7%
TSX:SJ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 4.2%
Canada Forestry Industry Earnings Growth Rate Market Cap Weighted Average -11.7%
Canada Forestry Industry Revenue Growth Rate Market Cap Weighted Average 0.3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:SJ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SJ Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,426 249 202 1
2020-12-31 2,309 236 191 8
2019-12-31 2,230 220 174 8
TSX:SJ Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,124 128 138
2018-09-30 2,068 113 168
2018-06-30 1,956 197 164
2018-03-31 1,888 229 165
2017-12-31 1,886 301 168
2017-09-30 1,851 282 135
2017-06-30 1,845 235 139
2017-03-31 1,814 173 145
2016-12-31 1,838 182 154
2016-09-30 1,854 152 168
2016-06-30 1,775 80 162
2016-03-31 1,640 48 146

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Stella-Jones's earnings are expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).
  • Stella-Jones's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:SJ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Stella-Jones Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SJ Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.92 2.92 2.92 1.00
2020-12-31 2.75 3.11 2.35 7.00
2019-12-31 2.50 2.81 2.31 7.00
TSX:SJ Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 1.98
2018-09-30 2.42
2018-06-30 2.37
2018-03-31 2.38
2017-12-31 2.42
2017-09-30 1.95
2017-06-30 2.01
2017-03-31 2.09
2016-12-31 2.22
2016-09-30 2.43
2016-06-30 2.34
2016-03-31 2.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Stella-Jones is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Stella-Jones's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Stella-Jones has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SJ Past Performance

  How has Stella-Jones performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Stella-Jones's growth in the last year to its industry (Forestry).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Stella-Jones's year on year earnings growth rate has been positive over the past 5 years.
  • Stella-Jones's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Stella-Jones's 1-year earnings growth is negative, it can't be compared to the CA Forestry industry average.
Earnings and Revenue History
Stella-Jones's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Stella-Jones Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SJ Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,123.89 137.60 98.31
2018-09-30 2,068.49 168.14 96.57
2018-06-30 1,956.08 164.26 91.68
2018-03-31 1,887.99 165.06 92.83
2017-12-31 1,886.14 167.89 93.67
2017-09-30 1,850.52 135.30 87.27
2017-06-30 1,845.48 139.00 90.66
2017-03-31 1,814.32 144.78 90.84
2016-12-31 1,838.35 153.90 92.06
2016-09-30 1,854.11 168.37 94.12
2016-06-30 1,774.59 162.03 94.26
2016-03-31 1,639.61 146.29 89.06
2015-12-31 1,559.33 141.38 84.07
2015-09-30 1,491.76 131.35 82.81
2015-06-30 1,415.98 121.55 75.39
2015-03-31 1,332.70 111.43 71.96
2014-12-31 1,249.49 103.85 68.36
2014-09-30 1,182.09 100.57 63.29
2014-06-30 1,110.11 98.69 60.97
2014-03-31 1,046.21 96.30 57.91
2013-12-31 1,011.29 92.54 55.92
2013-09-30 948.12 89.39 51.07
2013-06-30 858.25 82.41 48.10
2013-03-31 781.28 76.82 42.41
2012-12-31 717.49 73.07 38.44
2012-09-30 705.67 69.89 37.02
2012-06-30 692.05 65.78 36.55
2012-03-31 668.46 62.22 35.72

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Stella-Jones has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Stella-Jones used its assets less efficiently than the CA Forestry industry average last year based on Return on Assets.
  • Stella-Jones's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Stella-Jones's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Stella-Jones has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SJ Health

 How is Stella-Jones's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Stella-Jones's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Stella-Jones is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Stella-Jones's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Stella-Jones's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Stella-Jones Company Filings, last reported 2 months ago.

TSX:SJ Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,281.41 513.48
2018-09-30 1,238.37 499.03
2018-06-30 1,214.28 581.25
2018-03-31 1,155.41 565.42
2017-12-31 1,115.55 455.64 6.43
2017-09-30 1,064.32 454.15 15.74
2017-06-30 1,057.50 615.78 2.69
2017-03-31 1,036.67 698.62 2.71
2016-12-31 1,026.42 694.14 2.58
2016-09-30 989.40 643.14
2016-06-30 938.32 737.05
2016-03-31 896.40 632.05
2015-12-31 913.50 670.42 2.68
2015-09-30 861.22 538.32
2015-06-30 790.27 539.13
2015-03-31 762.98 518.51
2014-12-31 692.27 445.26
2014-09-30 658.90 434.30
2014-06-30 612.94 457.95
2014-03-31 604.50 408.07
2013-12-31 572.18 374.02 3.19
2013-09-30 545.70 319.61
2013-06-30 527.44 374.92
2013-03-31 490.22 384.39
2012-12-31 468.75 365.53 14.00
2012-09-30 373.73 190.30
2012-06-30 363.67 197.44
2012-03-31 341.50 184.11
  • Stella-Jones's level of debt (40.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (65.4% vs 40.1% today).
  • Debt is well covered by operating cash flow (24.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.8x coverage).
X
Financial health checks
We assess Stella-Jones's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Stella-Jones has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SJ Dividends

 What is Stella-Jones's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.33%
Current annual income from Stella-Jones dividends. Estimated to be 1.41% next year.
If you bought CA$2,000 of Stella-Jones shares you are expected to receive CA$27 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Stella-Jones's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.09%).
  • Stella-Jones's dividend is below the markets top 25% of dividend payers in Canada (5.67%).
Upcoming dividend payment

Purchase Stella-Jones on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:SJ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Canada Forestry Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2.9%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:SJ Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.72 1.00
2020-12-31 0.60 4.00
2019-12-31 0.56 4.00
TSX:SJ Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-03-15 0.560 1.334
2018-11-02 0.480 1.181
2018-08-08 0.480 1.098
2018-05-03 0.480 1.028
2018-03-14 0.480 1.055
2017-11-03 0.440 0.896
2017-08-09 0.440 0.920
2017-05-04 0.440 1.003
2017-03-17 0.440 1.071
2016-11-08 0.400 0.948
2016-08-10 0.400 0.884
2016-04-28 0.400 0.836
2016-03-29 0.400 0.848
2016-03-16 0.400 0.865
2015-11-06 0.320 0.667
2015-08-07 0.320 0.713
2015-03-13 0.320 0.758
2014-11-07 0.280 0.786
2014-08-08 0.280 0.920
2014-05-01 0.280 0.953
2014-03-14 0.280 0.919
2013-11-08 0.200 0.740
2013-08-09 0.200 0.767
2013-05-02 0.200 0.838
2013-03-22 0.200 1.019
2012-11-09 0.160 0.840
2012-08-10 0.160 1.077
2012-05-03 0.150 1.106
2012-03-16 0.150 1.382
2011-08-11 0.130 1.315
2011-03-11 0.120 1.271
2010-08-12 0.100 1.337
2010-03-12 0.090 1.298
2009-08-13 0.090 1.526
2009-03-20 0.090 1.676

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Stella-Jones's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess Stella-Jones's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Stella-Jones afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Stella-Jones has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SJ Management

 What is the CEO of Stella-Jones's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian McManus
COMPENSATION CA$1,663,115
AGE 50
TENURE AS CEO 15.8 years
CEO Bio

Mr. Brian McManus has been the Chief Executive Officer and President of Stella-Jones Inc. since May 7, 2003 and June 2001 respectively. Mr. McManus served as the Chief Operating Officer of Stella-Jones Inc. He has been a Director of Stella-Jones Inc, since June 2001.

CEO Compensation
  • Brian's compensation has been consistent with company performance over the past year.
  • Brian's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Stella-Jones management team in years:

7.8
Average Tenure
  • The average tenure for the Stella-Jones management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Brian McManus

TITLE
President
COMPENSATION
CA$2M
AGE
50
TENURE
15.8 yrs

Éric Vachon

TITLE
Senior VP & CFO
COMPENSATION
CA$605K
TENURE
6.6 yrs

Ian Jones

TITLE
Senior Vice-President
COMPENSATION
CA$673K
TENURE
6.3 yrs

Michael Sylvester

TITLE
Senior Vice-President of Stella-Jones Corporation
COMPENSATION
CA$761K
TENURE
8.9 yrs

Kevin Comerford

TITLE
Vice-President of Poles & Residential Sales - McFarland Cascade Holdings Inc
COMPENSATION
CA$509K
TENURE
6 yrs

Gordon Murray

TITLE
VP of Environment & Technology and GM of Atlantic Region

Marla Eichenbaum

TITLE
VP, General Counsel & Secretary
COMPENSATION
CA$264K
TENURE
20.6 yrs
Board of Directors Tenure

Average tenure and age of the Stella-Jones board of directors in years:

17.8
Average Tenure
66
Average Age
  • The average tenure for the Stella-Jones board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Kate Lehman

TITLE
Chairman of the Board
COMPENSATION
CA$93K
AGE
43
TENURE
0.5 yrs

Brian McManus

TITLE
President
COMPENSATION
CA$2M
AGE
50
TENURE
17.8 yrs

Gianni Chiarva

TITLE
Vice Chairman of the Board
COMPENSATION
CA$180K
AGE
70
TENURE
25.2 yrs

George Bunze

TITLE
Independent Director
COMPENSATION
CA$113K
AGE
74
TENURE
17.8 yrs

Tom Bruce Jones

TITLE
Director
COMPENSATION
CA$180K
AGE
76
TENURE
25.7 yrs

Simon Pelletier

TITLE
Lead Director
COMPENSATION
CA$93K
AGE
51

Daniel Picotte

TITLE
Non-Independent Director
COMPENSATION
CA$93K
AGE
63
TENURE
25.7 yrs

Nycol Pageau-Goyette

TITLE
Director
COMPENSATION
CA$93K
AGE
74
TENURE
25.7 yrs

Mary Webster

TITLE
Independent Director
COMPENSATION
CA$93K
AGE
64
TENURE
11.8 yrs

James Manzi

TITLE
Independent Director
COMPENSATION
CA$93K
AGE
68
TENURE
3.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Stella-Jones insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
28. Jan 19 Buy Karen Laflamme Individual 25. Jan 19 25. Jan 19 1,000 CA$41.90 CA$41,900
15. Jan 19 Buy Katherine Lehman Individual 14. Jan 19 14. Jan 19 4,000 CA$41.04 CA$164,038
10. Jan 19 Buy Simon Pelletier Individual 10. Jan 19 10. Jan 19 1,000 CA$42.00 CA$42,000
07. Jan 19 Buy Karen Laflamme Individual 07. Jan 19 07. Jan 19 1,000 CA$40.14 CA$40,137
22. Dec 18 Buy Ian Jones Individual 21. Dec 18 21. Dec 18 600 CA$38.50 CA$23,100
10. Sep 18 Sell Mary Webster Individual 06. Sep 18 06. Sep 18 -5,000 CA$44.39 CA$-221,611
14. Aug 18 Buy Brian McManus Individual 14. Aug 18 14. Aug 18 50,000 CA$40.63 CA$2,031,500
14. Aug 18 Sell Stella Jones International S.A. Company 14. Aug 18 14. Aug 18 -13,126,925 CA$40.63 CA$-533,346,961
14. Aug 18 Sell Stella Jones International S.A. Company 14. Aug 18 14. Aug 18 -8,445,911 CA$40.63 CA$-343,157,363
X
Management checks
We assess Stella-Jones's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Stella-Jones has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SJ News

Simply Wall St News

An Examination Of Stella-Jones Inc. (TSE:SJ)

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Why Stella-Jones Inc.'s (TSE:SJ) CEO Pay Matters To You

In 2003 Brian McManus was appointed CEO of Stella-Jones Inc. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Brian McManus's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Should You Be Tempted To Sell Stella-Jones Inc. (TSE:SJ) Because Of Its P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … That is equivalent to an earnings yield of about 5.7%. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Have Insiders Been Buying Stella-Jones Inc. (TSE:SJ) Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in Stella-Jones Inc. … Nonetheless, we consider it positive if insiders want to buy at around the current share price.

Simply Wall St -

Estimating The Intrinsic Value Of Stella-Jones Inc. (TSE:SJ)

In this article I am going to calculate the intrinsic value of Stella-Jones Inc. … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Did Stella-Jones Inc (TSE:SJ) Use Debt To Deliver Its ROE Of 14%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Do You Get For Owning Stella-Jones Inc (TSE:SJ)?

and looking to gauge the potential return on investment in Stella-Jones Inc (TSE:SJ). … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently Stella-Jones is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

What You Need To Know About Stella-Jones Inc’s (TSE:SJ) Cash Situation

What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … Free cash flow (FCF) is the amount of cash Stella-Jones has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … There are two methods I will use to evaluate the quality of Stella-Jones’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Is Stella-Jones Inc's (TSE:SJ) CEO Incentives Align With Yours?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Brian McManus's Compensation Compare With Similar Sized Companies. … A first glance this seems like a real positive for shareholders, since Brian McManus is paid less than the average compensation paid by similar sized companies.

Simply Wall St -

Why Stella-Jones Inc (TSE:SJ) Is A Star In A Falling Market

Longstanding stocks such as Stella-Jones Inc has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … Below I take a look at three key characteristics of what makes a strong defensive stock investment: its size, financial health and track record. … and with the stock's market cap sitting at CA$3.11b, it comes under the

Simply Wall St -

SJ Company Info

Description

Stella-Jones Inc. produces, markets, and sells pressure treated wood products in Canada and the United States. It offers railway ties and timbers for railroad operators; and utility poles for electrical utilities and telecommunication companies. The company also provides residential lumber and accessories to retailers and wholesalers for use in decks, fences, patios, and other outdoor applications; and industrial products, including bridge timbers and docks, foundation and marine pilings, highway guardrail posts, and panelized railway crossings; and construction timbers. In addition, it offers wood preservative creosote products that are used in wood treating activities; and coal tar based products. The company was founded in 1992 and is headquartered in Saint-Laurent, Canada.

Details
Name: Stella-Jones Inc.
SJ
Exchange: TSX
Founded: 1992
CA$2,925,177,082
69,267,750
Website: http://www.stella-jones.com
Address: Stella-Jones Inc.
3100 de la Côte-Vertu Boulevard,
Suite 300,
Saint-Laurent,
Quebec, H4R 2J8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SJ Common Shares The Toronto Stock Exchange CA CAD 29. Jun 1994
OTCPK STLJ.F Common Shares Pink Sheets LLC US USD 29. Jun 1994
DB 97S Common Shares Deutsche Boerse AG DE EUR 29. Jun 1994
Number of employees
Current staff
Staff numbers
2,110
Stella-Jones employees.
Industry
Forest Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 23:43
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/03/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.