TSX:SJ

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Executive Summary

Stella-Jones Inc. produces, markets, and sells pressure treated wood products in Canada and the United States. More Details


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

SJ

3.5%

CA Forestry

0.07%

CA Market


1 Year Return

22.3%

SJ

7.4%

CA Forestry

-3.6%

CA Market

Return vs Industry: SJ exceeded the Canadian Forestry industry which returned 7.8% over the past year.

Return vs Market: SJ exceeded the Canadian Market which returned -4% over the past year.


Shareholder returns

SJIndustryMarket
7 Day0.7%3.5%0.07%
30 Day3.1%6.7%2.1%
90 Day9.4%2.0%1.8%
1 Year24.3%22.3%9.1%7.4%-0.09%-3.6%
3 Year-5.9%-9.5%-16.8%-22.4%3.7%-6.1%
5 Year-0.4%-5.9%19.2%9.1%31.1%11.6%

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

Valuation

Is Stella-Jones undervalued compared to its fair value and its price relative to the market?

17.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SJ (CA$45.3) is trading above our estimate of fair value (CA$35.5)

Significantly Below Fair Value: SJ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SJ is good value based on its PE Ratio (17.2x) compared to the CA Forestry industry average (27.8x).

PE vs Market: SJ is poor value based on its PE Ratio (17.2x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: SJ is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: SJ is overvalued based on its PB Ratio (2.2x) compared to the CA Forestry industry average (1.1x).


Next Steps

Future Growth

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

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJ's forecast earnings growth (4.3% per year) is above the savings rate (1.7%).

Earnings vs Market: SJ's earnings (4.3% per year) are forecast to grow slower than the Canadian market (22.7% per year).

High Growth Earnings: SJ's earnings are forecast to grow, but not significantly.

Revenue vs Market: SJ's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: SJ's revenue is forecast to decline over the next 3 years (-1% 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 (12.4%).


Next Steps

Past Performance

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

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SJ has high quality earnings.

Growing Profit Margin: SJ's current net profit margins (7.7%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: SJ's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: SJ's earnings growth over the past year (21.4%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: SJ earnings growth over the past year (21.4%) exceeded the Forestry industry -46.1%.


Return on Equity

High ROE: SJ's Return on Equity (12.8%) is considered low.


Next Steps

Financial Health

How is Stella-Jones's financial position?


Financial Position Analysis

Short Term Liabilities: SJ's short term assets (CA$1.4B) exceed its short term liabilities (CA$276.0M).

Long Term Liabilities: SJ's short term assets (CA$1.4B) exceed its long term liabilities (CA$852.0M).


Debt to Equity History and Analysis

Debt Level: SJ's debt to equity ratio (45.5%) is considered high.

Reducing Debt: SJ's debt to equity ratio has reduced from 68.1% to 45.5% over the past 5 years.

Debt Coverage: SJ's debt is well covered by operating cash flow (30.4%).

Interest Coverage: SJ's interest payments on its debt are well covered by EBIT (10.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SJ's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.68%).

High Dividend: SJ's dividend (1.32%) is low compared to the top 25% of dividend payers in the Canadian market (5.83%).


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 (22%), 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 (24.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Éric Vachon (52 yo)

1

Tenure

CA$863,273

Compensation

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 ($USD656.71K) is below average for companies of similar size in the Canadian market ($USD2.06M).

Compensation vs Earnings: Éric's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Éric Vachon
CEO, President & Director1yrCA$863.27k0.0028%
CA$ 86.5k
Ian Jones
Senior Vice-President7.92yrsCA$1.45m0.0036%
CA$ 109.8k
Silvana Travaglini
Senior VP & CFO0.75yrno datano data
Gordon Murray
VP of Environment & Technology and GM of Atlantic Regionno datano datano data
Marla Eichenbaum
VP, General Counsel & Secretary22.17yrsCA$263.53k0.016%
CA$ 484.3k
Sylvain Couture
Vice-Presidentno datano data0.0089%
CA$ 271.2k
Patrick Stark
Vice President Environment Health and Safetyno datano data0.0012%
CA$ 36.7k

4.5yrs

Average Tenure

Experienced Management: SJ's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Éric Vachon
CEO, President & Director1yrCA$863.27k0.0028%
CA$ 86.5k
James Manzi
Independent Director5.5yrsCA$107.50k0.0074%
CA$ 226.5k
Robert Coallier
Independent Corporate Director0.75yrno data0.012%
CA$ 356.8k
Katherine Lehman
Independent Chairman of the Board2.08yrsCA$150.00k0.0081%
CA$ 249.2k
Douglas Muzyka
Independent Corporate Director0.83yrCA$3.80kno data
Rhodri Harries
Independent Director0.42yrno data0.015%
CA$ 453.1k
Karen Laflamme
Corporate Independent Director1.83yrsCA$107.50k0.0074%
CA$ 226.5k
Mary Webster
Corporate Independent Director13.42yrsCA$107.50k0.032%
CA$ 986.3k
Simon Pelletier
Independent Lead Directorno dataCA$107.50k0.0089%
CA$ 271.8k

1.4yrs

Average Tenure

57yo

Average Age

Experienced Board: SJ's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SJ insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Stella-Jones Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stella-Jones Inc.
  • Ticker: SJ
  • Exchange: TSX
  • Founded: 1992
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: CA$3.057b
  • Shares outstanding: 67.49m
  • Website: https://www.stella-jones.com

Number of Employees


Location

  • Stella-Jones Inc.
  • 3100 de la Côte-Vertu Boulevard
  • Suite 300
  • Saint-Laurent
  • Quebec
  • H4R 2J8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SJTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 1994
STLJ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 1994
97SDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1994

Biography

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 ut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 00:18
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.