Stella-Jones Inc. produces, markets, and sells pressure treated wood products in Canada and the United States.
Solid track record with adequate balance sheet and pays a dividend.
Share Price & News
How has Stella-Jones's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SJ's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: SJ exceeded the Canadian Forestry industry which returned -52% over the past year.
Return vs Market: SJ underperformed the Canadian Market which returned -26% over the past year.
Price Volatility Vs. Market
How volatile is Stella-Jones's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StShould You Like Stella-Jones Inc.’s (TSE:SJ) High Return On Capital Employed?
3 weeks ago | Simply Wall StBoasting A 12% Return On Equity, Is Stella-Jones Inc. (TSE:SJ) A Top Quality Stock?
1 month ago | Simply Wall StDo Directors Own Stella-Jones Inc. (TSE:SJ) Shares?
Is Stella-Jones undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SJ (CA$29.5) is trading below our estimate of fair value (CA$66.12)
Significantly Below Fair Value: SJ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SJ is poor value based on its PE Ratio (12.4x) compared to the Forestry industry average (11.2x).
PE vs Market: SJ is poor value based on its PE Ratio (12.4x) compared to the Canadian market (10.6x).
Price to Earnings Growth Ratio
PEG Ratio: SJ is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: SJ is overvalued based on its PB Ratio (1.5x) compared to the CA Forestry industry average (0.7x).
How is Stella-Jones forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SJ's forecast earnings growth (6.5% per year) is above the savings rate (1.4%).
Earnings vs Market: SJ's earnings (6.5% per year) are forecast to grow slower than the Canadian market (7.5% per year).
High Growth Earnings: SJ's earnings are forecast to grow, but not significantly.
Revenue vs Market: SJ's revenue (3.1% per year) is forecast to grow slower than the Canadian market (3.9% per year).
High Growth Revenue: SJ's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SJ's Return on Equity is forecast to be low in 3 years time (12.3%).
How has Stella-Jones performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SJ has high quality earnings.
Growing Profit Margin: SJ's current net profit margins (7.5%) are higher than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: SJ's earnings have grown by 5% per year over the past 5 years.
Accelerating Growth: SJ's earnings growth over the past year (18.5%) exceeds its 5-year average (5% per year).
Earnings vs Industry: SJ earnings growth over the past year (18.5%) exceeded the Forestry industry 4.5%.
Return on Equity
High ROE: SJ's Return on Equity (12.7%) is considered low.
How is Stella-Jones's financial position?
Financial Position Analysis
Short Term Liabilities: SJ's short term assets (CA$1.2B) exceed its short term liabilities (CA$182.1M).
Long Term Liabilities: SJ's short term assets (CA$1.2B) exceed its long term liabilities (CA$810.6M).
Debt to Equity History and Analysis
Debt Level: SJ's debt to equity ratio (47%) is considered high.
Reducing Debt: SJ's debt to equity ratio has reduced from 64.4% to 47% over the past 5 years.
Debt Coverage: SJ's debt is not well covered by operating cash flow (14.9%).
Interest Coverage: SJ's interest payments on its debt are well covered by EBIT (10.4x coverage).
Inventory Level: SJ has a high level of physical assets or inventory.
Debt Coverage by Assets: SJ's debt is covered by short term assets (assets are 2x debt).
What is Stella-Jones's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SJ's dividend (2.03%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.73%).
High Dividend: SJ's dividend (2.03%) is low compared to the top 25% of dividend payers in the Canadian market (8.76%).
Stability and Growth of Payments
Stable Dividend: SJ's dividends per share have been stable in the past 10 years.
Growing Dividend: SJ's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.6%), SJ's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SJ's dividends in 3 years are forecast to be well covered by earnings (23.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Éric Vachon (51yo)
Mr. Éric Vachon, CPA, CA, has been President, Chief Executive Officer and Director at Stella-Jones Inc., since October 11, 2019 and served as Interim Chief Financial Officer until January 13, 2020. He had ...
CEO Compensation Analysis
Compensation vs Market: Éric's total compensation ($USD452.18K) is below average for companies of similar size in the Canadian market ($USD2.50M).
Compensation vs Earnings: Éric's compensation has been consistent with company performance over the past year.
|CEO, President & Director||0.42yr||CA$636.38k||0.0028% CA$56.3k|
|Senior Vice-President||7.25yrs||CA$781.15k||0.0036% CA$71.5k|
|Senior VP & CFO||0.17yr||no data||no data|
|VP of Environment & Technology and GM of Atlantic Region||no data||no data||no data|
|VP, General Counsel & Secretary||21.58yrs||CA$263.53k||0.016% CA$315.3k|
|Vice-President||no data||no data||0.0089% CA$176.7k|
|Vice President Environment Health and Safety||no data||no data||0.0012% CA$23.9k|
Experienced Management: SJ's management team is considered experienced (3.9 years average tenure).
|CEO, President & Director||0.42yr||CA$636.38k||0.0028% CA$56.3k|
|Independent Director||4.83yrs||CA$92.50k||0.0074% CA$147.5k|
|Independent Corporate Director||0.17yr||no data||0.012% CA$232.3k|
|Independent Chairman of the Board||1.42yrs||CA$101.98k||0.0081% CA$162.2k|
|Independent Corporate Director||0.25yr||no data||no data|
|Corporate Independent Director||1.25yrs||CA$7.71k||0.0059% CA$118.0k|
|Corporate Independent Director||12.83yrs||CA$92.50k||0.032% CA$642.5k|
|Lead Director||no data||CA$92.50k||0.0074% CA$147.5k|
Experienced Board: SJ's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SJ insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Stella-Jones Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Stella-Jones Inc.
- Ticker: SJ
- Exchange: TSX
- Founded: 1992
- Industry: Forest Products
- Sector: Materials
- Market Cap: CA$1.990b
- Shares outstanding: 67.47m
- Website: https://www.stella-jones.com
Number of Employees
- Stella-Jones Inc.
- 3100 de la Côte-Vertu Boulevard
- Suite 300
- H4R 2J8
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SJ||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Jun 1994|
|STLJ.F||OTCPK (Pink Sheets LLC)||Yes||Common Shares||US||USD||Jun 1994|
|97S||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jun 1994|
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 for outdoor applications; industrial products, including bridge timbers, foundation and marine pilings; 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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/31 01:55|
|End of Day Share Price||2020/03/30 00:00|
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.