STELLA-JONES INC (SJ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SJ - CA85853F1053 - Common Stock
88.1 CAD
-1.56 (-1.74%)
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 is not valued too expensively and it also shows a decent 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.
- Each year in the past 5 years SJ has been profitable.
- SJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SJ's Return On Assets of 8.37% is amongst the best of the industry. SJ outperforms 100.00% of its industry peers.
- SJ has a better Return On Equity (16.39%) than 100.00% of its industry peers.
- With an excellent Return On Invested Capital value of 9.86%, SJ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- SJ's Profit Margin of 9.70% is amongst the best of the industry. SJ outperforms 91.67% of its industry peers.
- SJ's Profit Margin has improved in the last couple of years.
- 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 Gross Margin of 20.03%. This is in the better half of the industry: SJ outperforms 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
- 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
- SJ has less shares outstanding than it did 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 3.85 indicates that SJ is not in any danger for bankruptcy at the moment.
- SJ's Altman-Z score of 3.85 is amongst the best of the industry. SJ outperforms 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.
- With an excellent Debt to FCF ratio value of 3.94, SJ belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- SJ has a Debt/Equity ratio of 0.70. This is a neutral value indicating SJ is somewhat dependend on debt financing.
- SJ has a Debt to Equity ratio of 0.70. This is in the lower half of the industry: SJ underperforms 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
- SJ has a Current Ratio of 7.25. This indicates that SJ is financially healthy and has no problem in meeting its short term obligations.
- SJ has a Current ratio of 7.25. This is amongst the best in the industry. SJ outperforms 100.00% of its industry peers.
- A Quick Ratio of 1.82 indicates that SJ should not have too much problems paying its short term obligations.
- SJ's Quick ratio of 1.82 is amongst the best of 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
- SJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.02%.
- 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 1.98% in the past 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)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
- 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
- The Price/Earnings ratio is 14.44, which indicates a correct valuation of SJ.
- Based on the Price/Earnings ratio, SJ is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, SJ is valued a bit cheaper.
- A Price/Forward Earnings ratio of 13.75 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 (25.83), we can say SJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 13.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SJ is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, SJ is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.44 | ||
| 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.
- SJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.45
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%. Purely for dividend investing, there may be better candidates out there.
- SJ's Dividend Yield is a higher than the industry average which is at 2.47.
- SJ's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
- On average, the dividend of SJ grows each year by 14.68%, 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 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
- 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 6 / 10 to STELLA-JONES INC (SJ.CA). This can be considered as Fairly Valued.
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%.