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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SJ has a decent growth rate and is not valued too expensively.
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.
In the past 5 years SJ has always been profitable.
Each year in the past 5 years SJ had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.85%, SJ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SJ has a better Return On Equity (16.77%) than 100.00% of its industry peers.
The Return On Invested Capital of SJ (9.52%) is better than 100.00% of its industry peers.
SJ had an Average Return On Invested Capital over the past 3 years of 10.41%. This 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
Looking at the Profit Margin, with a value of 9.66%, SJ belongs to the top 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 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 has a Gross Margin (20.77%) which is in line with its industry peers.
SJ's Gross Margin has improved in the last couple of years.
| 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.
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.
The debt/assets ratio for SJ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.42 indicates that SJ is not in any danger for bankruptcy at the moment.
The Altman-Z score of SJ (3.42) is better than 100.00% of its industry peers.
SJ has a debt to FCF ratio of 5.72. This is a neutral value as SJ would need 5.72 years to pay back of all of its debts.
SJ has a Debt to FCF ratio of 5.72. This is comparable to the rest of the industry: SJ outperforms 58.33% of its industry peers.
SJ has a Debt/Equity ratio of 0.86. This is a neutral value indicating SJ is somewhat dependend on debt financing.
SJ's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. SJ is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.39
WACC6.84%
2.3 Liquidity
A Current Ratio of 7.51 indicates that SJ has no problem at all paying its short term obligations.
The Current ratio of SJ (7.51) is better than 100.00% of its industry peers.
SJ has a Quick Ratio of 1.67. This is a normal value and indicates that SJ is financially healthy and should not expect problems in meeting its short term obligations.
SJ's Quick ratio of 1.67 is amongst the best of 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.
Looking at the last year, SJ shows a small growth in Revenue. The Revenue has grown by 2.45% in the last year.
SJ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.65% yearly.
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
SJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.70% yearly.
The Revenue is expected to grow by 4.54% on average over the next years.
EPS Next Y3.48%
EPS Next 2Y5.76%
EPS Next 3Y6.52%
EPS Next 5Y7.7%
Revenue Next Year4.61%
Revenue Next 2Y4.54%
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
Based on the Price/Earnings ratio of 13.22, 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 26.82. SJ is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.47, the valuation of SJ can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as SJ.
When comparing the Price/Forward Earnings ratio of SJ to the average of the S&P500 Index (36.21), we can say SJ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
SJ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SJ is cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SJ is on the same level as its industry peers.
| 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 an expensive valuation of the company.
The excellent profitability rating of SJ may justify a higher PE ratio.
PEG (NY)3.8
PEG (5Y)0.7
EPS Next 2Y5.76%
EPS Next 3Y6.52%
5. Dividend
5.1 Amount
SJ has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.80, SJ pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, SJ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of SJ is nicely growing with an annual growth rate of 14.68%!
SJ has been paying a dividend for at least 10 years, so it has a reliable track record.
SJ has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
SJ's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.81%
EPS Next 2Y5.76%
EPS Next 3Y6.52%
TSX:SJ (8/1/2025, 7:00:00 PM)
78.81
-0.18 (-0.23%)
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 Target87.85 (11.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)1.62%
PT rev (3m)2.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.84%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.84%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 12.47 | ||
| 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
EY7.56%
EPS(NY)6.32
Fwd EY8.02%
FCF(TTM)5.67
FCFY7.2%
OCF(TTM)8.2
OCFY10.41%
SpS62.63
BVpS36.09
TBVpS25.76
PEG (NY)3.8
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
WACC6.84%
ROIC/WACC1.39
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 Year4.61%
Revenue Next 2Y4.54%
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%