STELLA-JONES INC (SJ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SJ - CA85853F1053 - Common Stock
88.63 CAD
-1.24 (-1.38%)
Overall SJ gets a fundamental rating of 7 out of 10. We evaluated SJ against 12 industry peers in the Paper & Forest Products industry. Both the health and profitability get an excellent rating, making SJ a very profitable company, without any liquidiy or solvency issues. SJ has a correct valuation and a medium growth rate.
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.
- SJ had positive earnings in each of the past 5 years.
- SJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SJ has a better Return On Assets (8.37%) than 100.00% of its industry peers.
- Looking at the Return On Equity, with a value of 16.39%, SJ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- SJ has a better Return On Invested Capital (9.86%) 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 4.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.37% | ||
| ROE | 16.39% | ||
| ROIC | 9.86% |
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 (9.70%) is better than 91.67% of its industry peers.
- In the last couple of years the Profit Margin of SJ has grown nicely.
- The Operating Margin of SJ (13.91%) is better than 91.67% of its industry peers.
- SJ's Operating Margin has improved in the last couple of years.
- SJ has a better Gross Margin (20.03%) than 66.67% of its industry peers.
- In the last couple of years the Gross Margin of SJ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.91% | ||
| PM (TTM) | 9.7% | ||
| GM | 20.03% |
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
- SJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
- The debt/assets ratio for SJ has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.85 indicates that SJ is not in any danger for bankruptcy at the moment.
- The Altman-Z score of SJ (3.85) is better than 100.00% of its industry peers.
- The Debt to FCF ratio of SJ is 3.94, which is a good value as it means it would take SJ, 3.94 years of fcf income to pay off all of its debts.
- SJ's Debt to FCF ratio of 3.94 is amongst the best of the industry. SJ outperforms 91.67% of its industry peers.
- A Debt/Equity ratio of 0.70 indicates that SJ is somewhat dependend on debt financing.
- SJ's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. SJ is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 3.85 |
ROIC/WACC1.41
WACC6.98%
2.3 Liquidity
- A Current Ratio of 7.25 indicates that SJ has no problem at all paying its short term obligations.
- SJ has a better Current ratio (7.25) than 100.00% of its industry peers.
- SJ has a Quick Ratio of 1.82. 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 Quick ratio of 1.82. This is amongst the best in the industry. SJ outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.25 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.02% over the past 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 1.98% 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)7.02%
EPS 3Y16.65%
EPS 5Y18.88%
EPS Q2Q%11.97%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y8.05%
Revenue growth 5Y9.65%
Sales Q2Q%4.7%
3.2 Future
- SJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.97% yearly.
- The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y9.95%
EPS Next 2Y6.5%
EPS Next 3Y6.5%
EPS Next 5Y8.97%
Revenue Next Year2.89%
Revenue Next 2Y4.71%
Revenue Next 3Y4.14%
Revenue Next 5Y4.35%
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
- With a Price/Earnings ratio of 14.53, SJ is valued correctly.
- Based on the Price/Earnings ratio, SJ is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of SJ to the average of the S&P500 Index (27.21), we can say SJ is valued slightly cheaper.
- The Price/Forward Earnings ratio is 13.83, which indicates a correct valuation of SJ.
- 83.33% of the companies in the same industry are more expensive than SJ, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of SJ to the average of the S&P500 Index (25.98), we can say SJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SJ indicates a somewhat cheap valuation: SJ is cheaper than 75.00% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SJ indicates a rather cheap valuation: SJ is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.51 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of SJ may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)0.77
EPS Next 2Y6.5%
EPS Next 3Y6.5%
5. Dividend
5.1 Amount
- SJ has a Yearly Dividend Yield of 1.38%.
- Compared to an average industry Dividend Yield of 2.47, SJ pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.81, SJ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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 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
- 19.76% 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.
DP19.76%
EPS Next 2Y6.5%
EPS Next 3Y6.5%
STELLA-JONES INC / SJ.CA FAQ
What is the fundamental rating for SJ stock?
ChartMill assigns a fundamental rating of 7 / 10 to SJ.CA.
Can you provide the valuation status for STELLA-JONES INC?
ChartMill assigns a valuation rating of 7 / 10 to STELLA-JONES INC (SJ.CA). This can be considered as Undervalued.
How profitable is STELLA-JONES INC (SJ.CA) stock?
STELLA-JONES INC (SJ.CA) has a profitability rating of 9 / 10.
How financially healthy is STELLA-JONES INC?
The financial health rating of STELLA-JONES INC (SJ.CA) is 8 / 10.
How sustainable is the dividend of STELLA-JONES INC (SJ.CA) stock?
The dividend rating of STELLA-JONES INC (SJ.CA) is 6 / 10 and the dividend payout ratio is 19.76%.