STELLA-JONES INC (SJ.CA) Stock Fundamental Analysis
TSX:SJ - Toronto Stock Exchange - CA85853F1053 - Common Stock - Currency: CAD
Taking everything into account, SJ scores 7 out of 10 in our fundamental rating. SJ was compared to 12 industry peers in the Paper & Forest Products industry. SJ gets an excellent profitability rating and is at the same time showing great financial health properties. SJ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SJ had positive earnings in the past year.
In the past year SJ had a positive cash flow from operations.
Each year in the past 5 years SJ has been profitable.
SJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SJ has a better Return On Assets (7.85%) than 100.00% of its industry peers.
SJ has a better Return On Equity (16.77%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.52%, SJ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SJ is significantly above the industry average of 3.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 16.77% | ||
| ROIC | 9.52% |
ROA(3y)8.14%
ROA(5y)8.32%
ROE(3y)17.22%
ROE(5y)16.52%
ROIC(3y)10.41%
ROIC(5y)10.53%
1.3 Margins
The Profit Margin of SJ (9.66%) is better than 91.67% of its industry peers.
In the last couple of years the Profit Margin of SJ has grown nicely.
SJ has a Operating Margin of 14.25%. This is amongst the best in the industry. SJ outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of SJ has grown nicely.
SJ's Gross Margin of 20.77% is in line compared to the rest of the industry. SJ outperforms 58.33% of its industry peers.
In the last couple of years the Gross Margin of SJ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.25% | ||
| PM (TTM) | 9.66% | ||
| GM | 20.77% |
OM growth 3Y6.62%
OM growth 5Y5.57%
PM growth 3Y3.66%
PM growth 5Y4.31%
GM growth 3Y7.97%
GM growth 5Y5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SJ is still creating some value.
SJ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SJ has less shares outstanding
SJ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.42 indicates that SJ is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.42, SJ belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Debt to FCF ratio of SJ is 5.72, which is a neutral value as it means it would take SJ, 5.72 years of fcf income to pay off all of its debts.
SJ has a Debt to FCF ratio (5.72) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that SJ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, SJ is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.3
WACC7.34%
2.3 Liquidity
SJ has a Current Ratio of 7.51. This indicates that SJ is financially healthy and has no problem in meeting its short term obligations.
SJ's Current ratio of 7.51 is amongst the best of the industry. SJ outperforms 100.00% of its industry peers.
A Quick Ratio of 1.67 indicates that SJ should not have too much problems paying its short term obligations.
SJ has a Quick ratio of 1.67. This is amongst the best in the industry. SJ outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.51 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for SJ have decreased by -0.17% in the last year.
SJ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.88% yearly.
SJ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.45%.
The Revenue has been growing by 9.65% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.17%
EPS 3Y16.65%
EPS 5Y18.88%
EPS Q2Q%22.79%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y8.05%
Revenue growth 5Y9.65%
Sales Q2Q%-0.26%
3.2 Future
The Earnings Per Share is expected to grow by 7.70% on average over the next years.
Based on estimates for the next years, SJ will show a small growth in Revenue. The Revenue will grow by 4.56% on average per year.
EPS Next Y3.48%
EPS Next 2Y5.76%
EPS Next 3Y6.52%
EPS Next 5Y7.7%
Revenue Next Year5.35%
Revenue Next 2Y4.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.17, which indicates a correct valuation of SJ.
91.67% of the companies in the same industry are more expensive than SJ, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SJ to the average of the S&P500 Index (26.98), we can say SJ is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.42, SJ is valued correctly.
SJ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.49. SJ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
SJ's Enterprise Value to EBITDA ratio is in line with the industry average.
SJ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.89 | ||
| EV/EBITDA | 9.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SJ does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SJ may justify a higher PE ratio.
PEG (NY)3.79
PEG (5Y)0.7
EPS Next 2Y5.76%
EPS Next 3Y6.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, SJ has a reasonable but not impressive dividend return.
SJ's Dividend Yield is a higher than the industry average which is at 5.89.
SJ's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of SJ is nicely growing with an annual growth rate of 14.68%!
SJ has paid a dividend for at least 10 years, which is a reliable track record.
SJ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.68%
Div Incr Years20
Div Non Decr Years21
5.3 Sustainability
SJ pays out 18.81% of its income as dividend. This is a sustainable payout ratio.
The dividend of SJ is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.81%
EPS Next 2Y5.76%
EPS Next 3Y6.52%
TSX:SJ (6/27/2025, 7:00:00 PM)
78.51
+0.35 (+0.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners63.04%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap4.36B
Analysts77.5
Price Target86.45 (10.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend1.12
Dividend Growth(5Y)14.68%
DP18.81%
Div Incr Years20
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.32%
Min EPS beat(2)26.72%
Max EPS beat(2)39.92%
EPS beat(4)2
Avg EPS beat(4)11.05%
Min EPS beat(4)-20.99%
Max EPS beat(4)39.92%
EPS beat(8)6
Avg EPS beat(8)15.36%
EPS beat(12)10
Avg EPS beat(12)14.68%
EPS beat(16)13
Avg EPS beat(16)12.41%
Revenue beat(2)1
Avg Revenue beat(2)-2.33%
Min Revenue beat(2)-6.88%
Max Revenue beat(2)2.22%
Revenue beat(4)1
Avg Revenue beat(4)-4.83%
Min Revenue beat(4)-11.08%
Max Revenue beat(4)2.22%
Revenue beat(8)2
Avg Revenue beat(8)-3.74%
Revenue beat(12)5
Avg Revenue beat(12)-1.28%
Revenue beat(16)7
Avg Revenue beat(16)-1.06%
PT rev (1m)1.35%
PT rev (3m)-0.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 12.42 | ||
| P/S | 1.26 | ||
| P/FCF | 13.89 | ||
| P/OCF | 9.61 | ||
| P/B | 2.18 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)5.96
EY7.59%
EPS(NY)6.32
Fwd EY8.05%
FCF(TTM)5.65
FCFY7.2%
OCF(TTM)8.17
OCFY10.41%
SpS62.41
BVpS35.97
TBVpS25.67
PEG (NY)3.79
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 16.77% | ||
| ROCE | 12.48% | ||
| ROIC | 9.52% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 11.4% | ||
| OM | 14.25% | ||
| PM (TTM) | 9.66% | ||
| GM | 20.77% | ||
| FCFM | 9.06% |
ROA(3y)8.14%
ROA(5y)8.32%
ROE(3y)17.22%
ROE(5y)16.52%
ROIC(3y)10.41%
ROIC(5y)10.53%
ROICexc(3y)10.41%
ROICexc(5y)10.53%
ROICexgc(3y)12.52%
ROICexgc(5y)12.82%
ROCE(3y)13.65%
ROCE(5y)13.81%
ROICexcg growth 3Y-3.18%
ROICexcg growth 5Y1.74%
ROICexc growth 3Y-0.99%
ROICexc growth 5Y2.71%
OM growth 3Y6.62%
OM growth 5Y5.57%
PM growth 3Y3.66%
PM growth 5Y4.31%
GM growth 3Y7.97%
GM growth 5Y5%
F-Score6
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 104.48% | ||
| Cap/Sales | 4.04% | ||
| Interest Coverage | 5.61 | ||
| Cash Conversion | 72.29% | ||
| Profit Quality | 93.73% | ||
| Current Ratio | 7.51 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 3.42 |
F-Score6
WACC7.34%
ROIC/WACC1.3
Cap/Depr(3y)127.58%
Cap/Depr(5y)108.32%
Cap/Sales(3y)4.21%
Cap/Sales(5y)3.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.17%
EPS 3Y16.65%
EPS 5Y18.88%
EPS Q2Q%22.79%
EPS Next Y3.48%
EPS Next 2Y5.76%
EPS Next 3Y6.52%
EPS Next 5Y7.7%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y8.05%
Revenue growth 5Y9.65%
Sales Q2Q%-0.26%
Revenue Next Year5.35%
Revenue Next 2Y4.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.62%
EBIT growth 3Y15.2%
EBIT growth 5Y15.76%
EBIT Next Year28.68%
EBIT Next 3Y10.47%
EBIT Next 5Y8.66%
FCF growth 1Y119.58%
FCF growth 3Y12.32%
FCF growth 5Y64.2%
OCF growth 1Y75.29%
OCF growth 3Y17.58%
OCF growth 5Y35.33%