STELLA-JONES INC (SJ.CA) Stock Fundamental Analysis
TSX:SJ - Toronto Stock Exchange - CA85853F1053 - Common Stock - Currency: CAD
Overall SJ gets a fundamental rating of 6 out of 10. We evaluated SJ against 12 industry peers in the Paper & Forest Products industry. While SJ has a great profitability rating, there are some minor concerns on its financial health. SJ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SJ was profitable.
SJ had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 7.95%, SJ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 17.52%, SJ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SJ has a better Return On Invested Capital (10.41%) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 17.52% | ||
| ROIC | 10.41% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SJ (9.20%) is better than 91.67% of its industry peers.
SJ's Profit Margin has improved in the last couple of years.
SJ has a Operating Margin of 14.50%. 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.
With a decent Gross Margin value of 20.87%, SJ is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of SJ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.5% | ||
| PM (TTM) | 9.2% | ||
| GM | 20.87% |
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.
There is no outstanding debt for SJ. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.38 indicates that SJ is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.38, 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 6.40, which is on the high side as it means it would take SJ, 6.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SJ (6.40) is comparable to the rest of the 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.4 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.31
WACC7.95%
2.3 Liquidity
A Current Ratio of 6.57 indicates that SJ has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.57, SJ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SJ has a Quick Ratio of 1.53. 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 (1.53) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.57 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.34% over the past year.
The Earnings Per Share has been growing by 19.00% on average over the past years. This is quite good.
Looking at the last year, SJ shows a small growth in Revenue. The Revenue has grown by 4.52% in the last year.
Measured over the past years, SJ shows a quite strong growth in Revenue. The Revenue has been growing by 9.65% on average per year.
EPS 1Y (TTM)0.34%
EPS 3Y17.46%
EPS 5Y19%
EPS Q2Q%-5.25%
Revenue 1Y (TTM)4.52%
Revenue growth 3Y8.05%
Revenue growth 5Y9.65%
Sales Q2Q%6.1%
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 10.47% yearly.
SJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.43% yearly.
EPS Next Y5.26%
EPS Next 2Y3.7%
EPS Next 3Y13.23%
EPS Next 5Y10.47%
Revenue Next Year7.07%
Revenue Next 2Y5.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
A Price/Earnings ratio of 12.21 indicates a correct valuation of SJ.
Based on the Price/Earnings ratio, SJ is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. SJ is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.74, which indicates a very decent valuation of SJ.
Based on the Price/Forward Earnings ratio, SJ is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
SJ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 11.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SJ is valued a bit cheaper than 75.00% 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 | 14.51 | ||
| EV/EBITDA | 8.75 |
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.
A more expensive valuation may be justified as SJ's earnings are expected to grow with 13.23% in the coming years.
PEG (NY)2.32
PEG (5Y)0.64
EPS Next 2Y3.7%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
SJ has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.93, SJ pays a bit more dividend than its industry peers.
SJ's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
On average, the dividend of SJ grows each year by 13.73%, which is quite nice.
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)13.73%
Div Incr Years20
Div Non Decr Years21
5.3 Sustainability
SJ pays out 19.75% 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.
DP19.75%
EPS Next 2Y3.7%
EPS Next 3Y13.23%
TSX:SJ (3/7/2025, 7:00:00 PM)
68.97
+0.37 (+0.54%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners61.89%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap3.85B
Analysts77.5
Price Target86.57 (25.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.91
Dividend Growth(5Y)13.73%
DP19.75%
Div Incr Years20
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-4.43%
Min Revenue beat(2)-11.08%
Max Revenue beat(2)2.22%
Revenue beat(4)1
Avg Revenue beat(4)-3.71%
Min Revenue beat(4)-11.08%
Max Revenue beat(4)2.22%
Revenue beat(8)2
Avg Revenue beat(8)-3.18%
Revenue beat(12)6
Avg Revenue beat(12)-0.19%
Revenue beat(16)8
Avg Revenue beat(16)0.12%
PT rev (1m)-1.74%
PT rev (3m)-4.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)1.88%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.21 | ||
| Fwd PE | 11.74 | ||
| P/S | 1.11 | ||
| P/FCF | 14.51 | ||
| P/OCF | 9.43 | ||
| P/B | 2.11 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)5.65
EY8.19%
EPS(NY)5.87
Fwd EY8.52%
FCF(TTM)4.75
FCFY6.89%
OCF(TTM)7.32
OCFY10.61%
SpS62.21
BVpS32.66
TBVpS22.72
PEG (NY)2.32
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 17.52% | ||
| ROCE | 13.65% | ||
| ROIC | 10.41% | ||
| ROICexc | 10.41% | ||
| ROICexgc | 12.25% | ||
| OM | 14.5% | ||
| PM (TTM) | 9.2% | ||
| GM | 20.87% | ||
| FCFM | 7.64% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 6.4 | ||
| Debt/EBITDA | 2.58 | ||
| Cap/Depr | 110% | ||
| Cap/Sales | 4.12% | ||
| Interest Coverage | 5.92 | ||
| Cash Conversion | 64.46% | ||
| Profit Quality | 83.07% | ||
| Current Ratio | 6.57 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 3.38 |
F-Score6
WACC7.95%
ROIC/WACC1.31
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)0.34%
EPS 3Y17.46%
EPS 5Y19%
EPS Q2Q%-5.25%
EPS Next Y5.26%
EPS Next 2Y3.7%
EPS Next 3Y13.23%
EPS Next 5Y10.47%
Revenue 1Y (TTM)4.52%
Revenue growth 3Y8.05%
Revenue growth 5Y9.65%
Sales Q2Q%6.1%
Revenue Next Year7.07%
Revenue Next 2Y5.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.6%
EBIT growth 3Y15.2%
EBIT growth 5Y15.76%
EBIT Next Year25.77%
EBIT Next 3Y11.73%
EBIT Next 5Y9.16%
FCF growth 1Y556.9%
FCF growth 3Y12.32%
FCF growth 5Y64.2%
OCF growth 1Y281.31%
OCF growth 3Y17.58%
OCF growth 5Y35.33%