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STELLA-JONES INC (SJ.CA) Stock Fundamental Analysis

TSX:SJ - Toronto Stock Exchange - CA85853F1053 - Common Stock - Currency: CAD

69.71  -0.01 (-0.01%)

Fundamental Rating

7

SJ gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 12 industry peers in the Paper & Forest Products industry. While SJ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SJ has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

In the past year SJ was profitable.
In the past year SJ had a positive cash flow from operations.
Each year in the past 5 years SJ has been profitable.
In the past 5 years SJ always reported a positive cash flow from operatings.
SJ.CA Yearly Net Income VS EBIT VS OCF VS FCFSJ.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

1.2 Ratios

SJ has a better Return On Assets (8.79%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 19.38%, SJ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.12%, SJ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SJ had an Average Return On Invested Capital over the past 3 years of 10.31%. This is significantly above the industry average of 4.98%.
The 3 year average ROIC (10.31%) for SJ is below the current ROIC(11.12%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.79%
ROE 19.38%
ROIC 11.12%
ROA(3y)8.38%
ROA(5y)8.19%
ROE(3y)16.96%
ROE(5y)15.77%
ROIC(3y)10.31%
ROIC(5y)10.08%
SJ.CA Yearly ROA, ROE, ROICSJ.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

With an excellent Profit Margin value of 10.20%, SJ belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of SJ has grown nicely.
SJ has a better Operating Margin (15.83%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of SJ has grown nicely.
SJ has a better Gross Margin (21.67%) than 66.67% of its industry peers.
SJ's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 15.83%
PM (TTM) 10.2%
GM 21.67%
OM growth 3Y6.11%
OM growth 5Y9.13%
PM growth 3Y6.06%
PM growth 5Y8.68%
GM growth 3Y5.84%
GM growth 5Y6.98%
SJ.CA Yearly Profit, Operating, Gross MarginsSJ.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

6

2. Health

2.1 Basic Checks

SJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SJ has less shares outstanding
The number of shares outstanding for SJ has been reduced compared to 5 years ago.
Compared to 1 year ago, SJ has a worse debt to assets ratio.
SJ.CA Yearly Shares OutstandingSJ.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
SJ.CA Yearly Total Debt VS Total AssetsSJ.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

An Altman-Z score of 3.43 indicates that SJ is not in any danger for bankruptcy at the moment.
SJ's Altman-Z score of 3.43 is amongst the best of the industry. SJ outperforms 91.67% of its industry peers.
The Debt to FCF ratio of SJ is 24.93, which is on the high side as it means it would take SJ, 24.93 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.93, SJ is in line with its industry, outperforming 50.00% of the companies in the same industry.
SJ has a Debt/Equity ratio of 0.90. This is a neutral value indicating SJ is somewhat dependend on debt financing.
The Debt to Equity ratio of SJ (0.90) is worse than 91.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 24.93
Altman-Z 3.43
ROIC/WACC1.65
WACC6.75%
SJ.CA Yearly LT Debt VS Equity VS FCFSJ.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

SJ has a Current Ratio of 6.57. This indicates that SJ is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SJ (6.57) is better than 100.00% of its industry peers.
A Quick Ratio of 1.53 indicates that SJ should not have too much problems paying its short term obligations.
The Quick ratio of SJ (1.53) is better than 91.67% of its industry peers.
Industry RankSector Rank
Current Ratio 6.57
Quick Ratio 1.53
SJ.CA Yearly Current Assets VS Current LiabilitesSJ.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

5

3. Growth

3.1 Past

SJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.16%, which is quite good.
SJ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.29% yearly.
SJ shows a small growth in Revenue. In the last year, the Revenue has grown by 3.97%.
SJ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.34% yearly.
EPS 1Y (TTM)8.16%
EPS 3Y21.82%
EPS 5Y23.29%
EPS Q2Q%-25.65%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y9.17%
Revenue growth 5Y9.34%
Sales Q2Q%-3.58%

3.2 Future

The Earnings Per Share is expected to grow by 8.07% on average over the next years. This is quite good.
Based on estimates for the next years, SJ will show a small growth in Revenue. The Revenue will grow by 3.46% on average per year.
EPS Next Y-0.31%
EPS Next 2Y2.04%
EPS Next 3Y2.73%
EPS Next 5Y8.07%
Revenue Next Year2.17%
Revenue Next 2Y3.59%
Revenue Next 3Y3.46%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
SJ.CA Yearly Revenue VS EstimatesSJ.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
SJ.CA Yearly EPS VS EstimatesSJ.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.23, the valuation of SJ can be described as correct.
Based on the Price/Earnings ratio, SJ is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.35. SJ is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.87, which indicates a very decent valuation of SJ.
91.67% of the companies in the same industry are more expensive than SJ, based on the Price/Forward Earnings ratio.
SJ is valuated cheaply when we compare the Price/Forward Earnings ratio to 95.00, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.23
Fwd PE 11.87
SJ.CA Price Earnings VS Forward Price EarningsSJ.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SJ is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as SJ.
Industry RankSector Rank
P/FCF 57.3
EV/EBITDA 8.34
SJ.CA Per share dataSJ.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

SJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y2.04%
EPS Next 3Y2.73%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.58%, SJ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.85, SJ pays a bit more dividend than its industry peers.
SJ's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 1.58%

5.2 History

On average, the dividend of SJ grows each year by 13.73%, which is quite nice.
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)13.73%
Div Incr Years20
Div Non Decr Years21
SJ.CA Yearly Dividends per shareSJ.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

SJ pays out 16.43% 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.
DP16.43%
EPS Next 2Y2.04%
EPS Next 3Y2.73%
SJ.CA Yearly Income VS Free CF VS DividendSJ.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M
SJ.CA Dividend Payout.SJ.CA Dividend Payout, showing the Payout Ratio.SJ.CA Dividend Payout.PayoutRetained Earnings

STELLA-JONES INC

TSX:SJ (2/5/2025, 7:00:00 PM)

69.71

-0.01 (-0.01%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)11-06 2024-11-06/bmo
Earnings (Next)02-27 2025-02-27/amc
Inst Owners66.04%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap3.90B
Analysts80
Price Target88.1 (26.38%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.58%
Yearly Dividend0.91
Dividend Growth(5Y)13.73%
DP16.43%
Div Incr Years20
Div Non Decr Years21
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.05%
Min EPS beat(2)-1.46%
Max EPS beat(2)23.57%
EPS beat(4)3
Avg EPS beat(4)16.4%
Min EPS beat(4)-1.46%
Max EPS beat(4)41.74%
EPS beat(8)7
Avg EPS beat(8)13.31%
EPS beat(12)10
Avg EPS beat(12)11.36%
EPS beat(16)14
Avg EPS beat(16)15.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.99%
Min Revenue beat(2)-3.58%
Max Revenue beat(2)-2.39%
Revenue beat(4)1
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-8.28%
Max Revenue beat(4)1.78%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)6
Avg Revenue beat(12)0.67%
Revenue beat(16)9
Avg Revenue beat(16)1.92%
PT rev (1m)-2.4%
PT rev (3m)-16.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.29%
EPS NY rev (3m)-8.72%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-4.15%
Valuation
Industry RankSector Rank
PE 12.23
Fwd PE 11.87
P/S 1.13
P/FCF 57.3
P/OCF 17.16
P/B 2.14
P/tB 3.08
EV/EBITDA 8.34
EPS(TTM)5.7
EY8.18%
EPS(NY)5.87
Fwd EY8.42%
FCF(TTM)1.22
FCFY1.75%
OCF(TTM)4.06
OCFY5.83%
SpS61.93
BVpS32.58
TBVpS22.67
PEG (NY)N/A
PEG (5Y)0.53
Profitability
Industry RankSector Rank
ROA 8.79%
ROE 19.38%
ROCE 14.87%
ROIC 11.12%
ROICexc 11.12%
ROICexgc 13.09%
OM 15.83%
PM (TTM) 10.2%
GM 21.67%
FCFM 1.96%
ROA(3y)8.38%
ROA(5y)8.19%
ROE(3y)16.96%
ROE(5y)15.77%
ROIC(3y)10.31%
ROIC(5y)10.08%
ROICexc(3y)10.31%
ROICexc(5y)10.08%
ROICexgc(3y)12.67%
ROICexgc(5y)12.38%
ROCE(3y)13.78%
ROCE(5y)13.48%
ROICexcg growth 3Y0.46%
ROICexcg growth 5Y5.08%
ROICexc growth 3Y1.08%
ROICexc growth 5Y6.73%
OM growth 3Y6.11%
OM growth 5Y9.13%
PM growth 3Y6.06%
PM growth 5Y8.68%
GM growth 3Y5.84%
GM growth 5Y6.98%
F-Score6
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 24.93
Debt/EBITDA 2.44
Cap/Depr 130.33%
Cap/Sales 4.59%
Interest Coverage 6.77
Cash Conversion 33.88%
Profit Quality 19.26%
Current Ratio 6.57
Quick Ratio 1.53
Altman-Z 3.43
F-Score6
WACC6.75%
ROIC/WACC1.65
Cap/Depr(3y)119.74%
Cap/Depr(5y)105.52%
Cap/Sales(3y)3.61%
Cap/Sales(5y)3.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.16%
EPS 3Y21.82%
EPS 5Y23.29%
EPS Q2Q%-25.65%
EPS Next Y-0.31%
EPS Next 2Y2.04%
EPS Next 3Y2.73%
EPS Next 5Y8.07%
Revenue 1Y (TTM)3.97%
Revenue growth 3Y9.17%
Revenue growth 5Y9.34%
Sales Q2Q%-3.58%
Revenue Next Year2.17%
Revenue Next 2Y3.59%
Revenue Next 3Y3.46%
Revenue Next 5YN/A
EBIT growth 1Y35.98%
EBIT growth 3Y15.84%
EBIT growth 5Y19.32%
EBIT Next Year25.35%
EBIT Next 3Y8.18%
EBIT Next 5Y7.15%
FCF growth 1Y-71.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-27.01%
OCF growth 3Y-15.6%
OCF growth 5Y-3.54%