STELLA-JONES INC (SJ.CA) Stock Fundamental Analysis
TSX:SJ - CA85853F1053 - Common Stock
77.32 CAD
+0.98 (+1.28%)
We assign a fundamental rating of 7 out of 10 to SJ. 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 valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years SJ has always been profitable.
In the past 5 years SJ always reported a positive cash flow from operatings.
1.2 Ratios
SJ has a better Return On Assets (8.12%) than 100.00% of its industry peers.
SJ has a Return On Equity of 16.71%. This is amongst the best in the industry. SJ outperforms 100.00% of its industry peers.
SJ has a better Return On Invested Capital (9.74%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SJ is significantly above the industry average of 4.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.71% | ||
| ROIC | 9.74% |
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 (9.59%) is better than 91.67% of its industry peers.
SJ's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 13.93%, 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 Operating Margin of SJ has grown nicely.
With a Gross Margin value of 20.28%, SJ perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
SJ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.93% | ||
| PM (TTM) | 9.59% | ||
| GM | 20.28% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SJ is 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
SJ has an Altman-Z score of 3.56. This indicates that SJ is financially healthy and has little risk of bankruptcy at the moment.
SJ has a better Altman-Z score (3.56) than 100.00% of its industry peers.
The Debt to FCF ratio of SJ is 4.49, which is a neutral value as it means it would take SJ, 4.49 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.49, SJ is doing good in the industry, outperforming 75.00% of the companies in the same industry.
SJ has a Debt/Equity ratio of 0.78. This is a neutral value indicating SJ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, SJ is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.49 | ||
| Altman-Z | 3.56 |
ROIC/WACC1.4
WACC6.94%
2.3 Liquidity
SJ has a Current Ratio of 6.93. This indicates that SJ is financially healthy and has no problem in meeting its short term obligations.
SJ's Current ratio of 6.93 is amongst the best of the industry. SJ outperforms 100.00% of its industry peers.
SJ has a Quick Ratio of 1.74. This is a normal value and indicates that SJ is financially healthy and should not expect problems in meeting its short term obligations.
SJ has a better Quick ratio (1.74) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.93 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
SJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.20%.
Measured over the past years, SJ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.88% on average per year.
Looking at the last year, SJ shows a decrease in Revenue. The Revenue has decreased by -0.26% in the last year.
The Revenue has been growing by 9.65% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.2%
EPS 3Y16.65%
EPS 5Y18.88%
EPS Q2Q%-1.55%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y8.05%
Revenue growth 5Y9.65%
Sales Q2Q%-1.43%
3.2 Future
The Earnings Per Share is expected to grow by 7.67% on average over the next years.
SJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y7.8%
EPS Next 2Y4.87%
EPS Next 3Y3.32%
EPS Next 5Y7.67%
Revenue Next Year2.57%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
SJ is valuated correctly with a Price/Earnings ratio of 13.04.
Based on the Price/Earnings ratio, SJ is valued cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, SJ is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.44, SJ is valued correctly.
Based on the Price/Forward Earnings ratio, SJ is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SJ to the average of the S&P500 Index (22.48), we can say SJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 12.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SJ.
Based on the Price/Free Cash Flow ratio, SJ is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.86 | ||
| EV/EBITDA | 9.44 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)0.69
EPS Next 2Y4.87%
EPS Next 3Y3.32%
5. Dividend
5.1 Amount
SJ has a Yearly Dividend Yield of 1.60%.
Compared to an average industry Dividend Yield of 5.77, SJ pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, SJ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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
19.64% of the earnings are spent on dividend by SJ. This is a low number and sustainable payout ratio.
SJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.64%
EPS Next 2Y4.87%
EPS Next 3Y3.32%
TSX:SJ (9/3/2025, 7:00:00 PM)
77.32
+0.98 (+1.28%)
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 Cap4.27B
Analysts77.5
Price Target86.57 (11.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend1.12
Dividend Growth(5Y)14.68%
DP19.64%
Div Incr Years20
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.44%
Min EPS beat(2)2.95%
Max EPS beat(2)39.92%
EPS beat(4)3
Avg EPS beat(4)12.15%
Min EPS beat(4)-20.99%
Max EPS beat(4)39.92%
EPS beat(8)6
Avg EPS beat(8)14.28%
EPS beat(12)10
Avg EPS beat(12)12.92%
EPS beat(16)13
Avg EPS beat(16)11.56%
Revenue beat(2)0
Avg Revenue beat(2)-6.53%
Min Revenue beat(2)-6.88%
Max Revenue beat(2)-6.17%
Revenue beat(4)1
Avg Revenue beat(4)-5.48%
Min Revenue beat(4)-11.08%
Max Revenue beat(4)2.22%
Revenue beat(8)2
Avg Revenue beat(8)-4.3%
Revenue beat(12)4
Avg Revenue beat(12)-2.11%
Revenue beat(16)7
Avg Revenue beat(16)-0.87%
PT rev (1m)-1.45%
PT rev (3m)1.49%
EPS NQ rev (1m)-2.7%
EPS NQ rev (3m)-2.14%
EPS NY rev (1m)4.18%
EPS NY rev (3m)4.18%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-1.95%
Revenue NY rev (3m)-2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 12.44 | ||
| P/S | 1.24 | ||
| P/FCF | 11.86 | ||
| P/OCF | 8.53 | ||
| P/B | 2.16 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 9.44 |
EPS(TTM)5.93
EY7.67%
EPS(NY)6.21
Fwd EY8.04%
FCF(TTM)6.52
FCFY8.43%
OCF(TTM)9.07
OCFY11.73%
SpS62.49
BVpS35.86
TBVpS25.85
PEG (NY)1.67
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.71% | ||
| ROCE | 12.77% | ||
| ROIC | 9.74% | ||
| ROICexc | 9.91% | ||
| ROICexgc | 11.65% | ||
| OM | 13.93% | ||
| PM (TTM) | 9.59% | ||
| GM | 20.28% | ||
| FCFM | 10.43% |
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 Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.49 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 103.68% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 6.25 | ||
| Cash Conversion | 81.2% | ||
| Profit Quality | 108.76% | ||
| Current Ratio | 6.93 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 3.56 |
F-Score6
WACC6.94%
ROIC/WACC1.4
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)-4.2%
EPS 3Y16.65%
EPS 5Y18.88%
EPS Q2Q%-1.55%
EPS Next Y7.8%
EPS Next 2Y4.87%
EPS Next 3Y3.32%
EPS Next 5Y7.67%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y8.05%
Revenue growth 5Y9.65%
Sales Q2Q%-1.43%
Revenue Next Year2.57%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.23%
EBIT growth 3Y15.2%
EBIT growth 5Y15.76%
EBIT Next Year28.68%
EBIT Next 3Y10.47%
EBIT Next 5Y9.01%
FCF growth 1Y1284.62%
FCF growth 3Y12.32%
FCF growth 5Y64.2%
OCF growth 1Y217.09%
OCF growth 3Y17.58%
OCF growth 5Y35.33%