STELLA-JONES INC (SJ.CA) Stock Fundamental Analysis
TSX:SJ - Toronto Stock Exchange - CA85853F1053 - Common Stock - Currency: CAD
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 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.
SJ had a positive operating cash flow in the past year.
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.
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.
Looking at the Return On Equity, with a value of 16.77%, SJ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.52%, SJ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SJ 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
SJ has a Profit Margin of 9.66%. This is amongst the best in the industry. SJ outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of SJ has grown nicely.
SJ has a better Operating Margin (14.25%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of SJ has grown nicely.
SJ's Gross Margin of 20.77% is in line compared to the rest of the industry. SJ outperforms 58.33% of 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SJ 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.
SJ has a better debt/assets ratio than last year.
2.2 Solvency
SJ has an Altman-Z score of 3.42. This indicates that SJ is financially healthy and has little risk of bankruptcy at the moment.
SJ has a Altman-Z score of 3.42. This is amongst the best in the industry. SJ outperforms 91.67% of its industry peers.
The Debt to FCF ratio of SJ is 5.72, which is a neutral value as it means it would take SJ, 5.72 years of fcf income to pay off all of its debts.
SJ has a Debt to FCF ratio (5.72) which is comparable to the rest of the industry.
SJ has a Debt/Equity ratio of 0.86. This is a neutral value indicating SJ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, SJ is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.3
WACC7.34%
2.3 Liquidity
A Current Ratio of 7.51 indicates that SJ has no problem at all paying its short term obligations.
With an excellent Current ratio value of 7.51, SJ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.67 indicates that SJ should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.67, SJ belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.51 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
SJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.17%.
SJ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.88% yearly.
The Revenue has been growing slightly by 2.45% in the past 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
Based on estimates for the next years, SJ will show a small growth in Earnings Per Share. The EPS will grow by 7.70% on average per year.
The Revenue is expected to grow by 4.56% on average over the next years.
EPS Next Y3.48%
EPS Next 2Y5.76%
EPS Next 3Y6.52%
EPS Next 5Y7.7%
Revenue Next Year5.35%
Revenue Next 2Y4.56%
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
The Price/Earnings ratio is 13.11, which indicates a correct valuation of SJ.
SJ's Price/Earnings ratio is rather cheap when compared to the industry. SJ is cheaper than 91.67% of the companies in the same industry.
SJ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.28.
SJ is valuated correctly with a Price/Forward Earnings ratio of 12.37.
SJ's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SJ is on the same level as its industry peers.
SJ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.83 | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.77
PEG (5Y)0.69
EPS Next 2Y5.76%
EPS Next 3Y6.52%
5. Dividend
5.1 Amount
SJ has a Yearly Dividend Yield of 1.59%.
Compared to an average industry Dividend Yield of 5.89, SJ pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, SJ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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
SJ pays out 18.81% 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.
DP18.81%
EPS Next 2Y5.76%
EPS Next 3Y6.52%
TSX:SJ (7/2/2025, 7:00:00 PM)
78.15
-0.34 (-0.43%)
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 Cap4.34B
Analysts77.5
Price Target86.45 (10.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)1.35%
PT rev (3m)-0.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.11 | ||
| Fwd PE | 12.37 | ||
| P/S | 1.25 | ||
| P/FCF | 13.83 | ||
| P/OCF | 9.56 | ||
| P/B | 2.17 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)5.96
EY7.63%
EPS(NY)6.32
Fwd EY8.09%
FCF(TTM)5.65
FCFY7.23%
OCF(TTM)8.17
OCFY10.46%
SpS62.41
BVpS35.97
TBVpS25.67
PEG (NY)3.77
PEG (5Y)0.69
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
WACC7.34%
ROIC/WACC1.3
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 Year5.35%
Revenue Next 2Y4.56%
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%