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. In the case of Stella-Jones Inc. (TSE:SJ), it is a financially-sound , dividend-paying company with a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Stella-Jones here.
Excellent balance sheet with proven track record and pays a dividend
Over the past year, SJ has grown its earnings by 24%, with its most recent figure exceeding its annual average over the past five years. Not only did SJ outperformed its past performance, its growth also exceeded the Forestry industry expansion, which generated a 20% earnings growth. This paints a buoyant picture for the company. SJ’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that SJ manages its cash and cost levels well, which is a crucial insight into the health of the company. SJ seems to have put its debt to good use, generating operating cash levels of 0.23x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Income investors would also be happy to know that SJ is a great dividend company, with a current yield standing at 1.2%. SJ has also been regularly increasing its dividend payments to shareholders over the past decade.
For Stella-Jones, I’ve put together three relevant factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for SJ’s future growth? Take a look at our free research report of analyst consensus for SJ’s outlook.
- Valuation: What is SJ worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SJ is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SJ? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.