SJ Stock Overview
Stella-Jones Inc. produces and markets pressure-treated wood products in Canada and the United States.
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$32.11|
|52 Week High||CA$46.51|
|52 Week Low||CA$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 IPO||2,632.77%|
Recent News & Updates
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...
|SJ||CA Forestry||CA 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.
|SJ Average Weekly Movement||3.9%|
|Forestry Industry Average Movement||6.3%|
|Market Average Movement||10.1%|
|10% most volatile stocks in CA Market||17.3%|
|10% least volatile stocks in CA Market||4.4%|
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
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
|SJ fundamental statistics|
Is SJ overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SJ income statement (TTM)|
|Cost of Revenue||CA$2.33b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Aug 10, 2022
|Earnings per share (EPS)||3.49|
|Net Profit Margin||7.81%|
How did SJ perform over the long term?See historical performance and comparison
2.5%Current Dividend Yield
Is SJ undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is SJ's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does SJ's PE Ratio compare to its peers?
|SJ PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
WEF Western Forest Products
ADN Acadian Timber
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.
|Current PE Ratio||9.2x|
|Fair PE Ratio||11.3x|
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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How is Stella-Jones forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Stella-Jones performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Stella-Jones's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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$1.2B).
Debt to Equity History and Analysis
Debt Level: SJ's net debt to equity ratio (64.5%) is considered high.
Reducing Debt: SJ's debt to equity ratio has reduced from 67.3% to 64.5% over the past 5 years.
Debt Coverage: SJ's debt is well covered by operating cash flow (27.5%).
Interest Coverage: SJ's interest payments on its debt are well covered by EBIT (13.5x coverage).
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What is Stella-Jones's current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SJ's dividend (2.49%) is higher than the bottom 25% of dividend payers in the Canadian market (1.99%).
High Dividend: SJ's dividend (2.49%) is low compared to the top 25% of dividend payers in the Canadian market (5.27%).
Stability and Growth of Payments
Stable Dividend: SJ's dividends per share have been stable in the past 10 years.
Growing Dividend: SJ's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (22%), SJ's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (27%), SJ's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Eric Vachon (53 yo)
Mr. Eric Vachon, CPA, CA, has been President, Chief Executive Officer and Director at Stella-Jones Inc., since October 11, 2019 and served as Interim Chief Financial Officer until January 13, 2020. He had...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($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.
Experienced Management: SJ's management team is seasoned and experienced (6.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Stella-Jones Inc.'s employee growth, exchange listings and data sources
- 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: https://www.stella-jones.com
Number of Employees
- Stella-Jones Inc.
- 3100 de la COte-Vertu Boulevard
- Suite 300
- H4R 2J8
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/28 00:00|
|End of Day Share Price||2022/06/28 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.