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Stella-Jones TSX:SJ Stock Report

Last Price


Market Cap







28 Jun, 2022


Company Financials +
SJ fundamental analysis
Snowflake Score
Future Growth1/6
Past Performance2/6
Financial Health5/6

SJ Stock Overview

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

Stella-Jones Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Stella-Jones
Historical stock prices
Current Share PriceCA$32.11
52 Week HighCA$46.51
52 Week LowCA$30.54
1 Month Change-10.01%
3 Month Change-15.81%
1 Year Change-28.05%
3 Year Change-32.84%
5 Year Change-27.27%
Change since IPO2,632.77%

Recent News & Updates

May 11
Stella-Jones (TSE:SJ) Has More To Do To Multiply In Value Going Forward

Stella-Jones (TSE:SJ) Has More To Do To Multiply In Value Going Forward

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...

Shareholder Returns

SJCA ForestryCA Market

Return vs Industry: SJ underperformed the Canadian Forestry industry which returned -8.2% over the past year.

Return vs Market: SJ underperformed the Canadian Market which returned -2.6% over the past year.

Price Volatility

Is SJ's price volatile compared to industry and market?
SJ volatility
SJ Average Weekly Movement3.9%
Forestry Industry Average Movement6.3%
Market Average Movement10.1%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market4.4%

Stable Share Price: SJ is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SJ's weekly volatility (4%) has been stable over the past year.

About the Company

19922,470Eric Vachon

Stella-Jones Inc. produces and markets pressure-treated wood products in Canada and the United States. It offers railway ties and timbers for railroad operators; and wood 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 and crossing timbers, foundation and marine piling, construction timbers, crane mats, fence posts, and highway guardrail posts; and coal tar-based products.

Stella-Jones Fundamentals Summary

How do Stella-Jones's earnings and revenue compare to its market cap?
SJ fundamental statistics
Market CapCA$2.00b
Earnings (TTM)CA$217.00m
Revenue (TTM)CA$2.78b


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SJ income statement (TTM)
Cost of RevenueCA$2.33b
Gross ProfitCA$444.00m
Other ExpensesCA$227.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)3.49
Gross Margin15.98%
Net Profit Margin7.81%
Debt/Equity Ratio64.5%

How did SJ perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio
We’ve recently updated our valuation analysis.


Is SJ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SJ?

Other financial metrics that can be useful for relative valuation.

SJ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA8.9x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

How does SJ's PE Ratio compare to its peers?

SJ PE Ratio vs Peers
The above table shows the PE ratio for SJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.7x
CFP Canfor
IFP Interfor
WEF Western Forest Products
ADN Acadian Timber
SJ Stella-Jones

Price-To-Earnings vs Peers: SJ is expensive based on its Price-To-Earnings Ratio (9.2x) compared to the peer average (5.7x).

Price to Earnings Ratio vs Industry

How does SJ's PE Ratio compare vs other companies in the Global Forestry Industry?

Price-To-Earnings vs Industry: SJ is expensive based on its Price-To-Earnings Ratio (9.2x) compared to the Canadian Forestry industry average (3.3x)

Price to Earnings Ratio vs Fair Ratio

What is SJ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SJ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.2x
Fair PE Ratio11.3x

Price-To-Earnings vs Fair Ratio: SJ is good value based on its Price-To-Earnings Ratio (9.2x) compared to the estimated Fair Price-To-Earnings Ratio (11.3x).

Share Price vs Fair Value

What is the Fair Price of SJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SJ (CA$32.11) is trading below our estimate of fair value (CA$55.76)

Significantly Below Fair Value: SJ is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: SJ is poor value based on its PEG Ratio (3.4x)

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Future Growth

How is Stella-Jones forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score


Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJ's forecast earnings growth (2.7% per year) is above the savings rate (1.6%).

Earnings vs Market: SJ's earnings (2.7% 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 (1.4% per year) is forecast to grow slower than the Canadian market (7% per year).

High Growth Revenue: SJ's revenue (1.4% 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 (14.5%).

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Past Performance

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

Past Performance Score


Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SJ has high quality earnings.

Growing Profit Margin: SJ's current net profit margins (7.8%) are lower than last year (8.9%).

Past Earnings Growth Analysis

Earnings Trend: SJ's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: SJ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SJ had negative earnings growth (-8.8%) over the past year, making it difficult to compare to the Forestry industry average (74.5%).

Return on Equity

High ROE: SJ's Return on Equity (15.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Stella-Jones's financial position?

Financial Health Score


Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SJ's short term assets (CA$1.6B) exceed its short term liabilities (CA$232.0M).

Long Term Liabilities: SJ's short term assets (CA$1.6B) exceed its long term liabilities (CA$1.2B).

Debt to Equity History and Analysis

Debt Level: SJ's net debt to equity ratio (64.5%) is considered high.

Reducing Debt: SJ's debt to equity ratio has reduced from 67.3% to 64.5% over the past 5 years.

Debt Coverage: SJ's debt is well covered by operating cash flow (27.5%).

Interest Coverage: SJ's interest payments on its debt are well covered by EBIT (13.5x coverage).

Balance Sheet

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

Dividend Score


Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SJ's dividend (2.49%) is higher than the bottom 25% of dividend payers in the Canadian market (1.99%).

High Dividend: SJ's dividend (2.49%) is low compared to the top 25% of dividend payers in the Canadian market (5.27%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22%), SJ's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (27%), SJ's dividend payments are well covered by cash flows.

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


Average management tenure


Eric Vachon (53 yo)





Mr. Eric 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: Eric's total compensation ($USD2.41M) is about average for companies of similar size in the Canadian market ($USD2.38M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: SJ's management team is seasoned and experienced (6.1 years average tenure).

Board Members

Experienced Board: SJ's board of directors are not considered experienced ( 2.6 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

Ownership Breakdown

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

Top Shareholders

Company Information

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

Key Information

  • Name: Stella-Jones Inc.
  • Ticker: SJ
  • Exchange: TSX
  • Founded: 1992
  • Industry: Forest Products
  • Sector: Materials
  • Implied Market Cap: CA$2.004b
  • Shares outstanding: 62.15m
  • Website:

Number of Employees


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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Annual Earnings2021/12/31

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.