STELLA-JONES INC (SJ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SJ - CA85853F1053 - Common Stock
88.63 CAD
-1.24 (-1.38%)
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. 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
- SJ had positive earnings in the past year.
- 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
- The Return On Assets of SJ (8.37%) is better than 100.00% of its industry peers.
- The Return On Equity of SJ (16.39%) is better than 100.00% of its industry peers.
- SJ has a Return On Invested Capital of 9.86%. This is amongst the best in the industry. SJ outperforms 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
- 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.
- SJ's Operating Margin of 13.91% is amongst the best of 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 20.03%, SJ is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- SJ's Gross Margin has improved in the last couple of years.
| 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
- 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
- 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.
- With an excellent Altman-Z score value of 3.85, SJ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- SJ has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as SJ would need 3.94 years to pay back of all of its debts.
- SJ has a Debt to FCF ratio of 3.94. This is amongst the best in 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
- 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.
- With an excellent Current ratio value of 7.25, SJ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- SJ has a Quick Ratio of 1.82. This is a normal value and indicates that SJ is financially healthy and should not expect problems in meeting its short term obligations.
- SJ'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
- 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.
- SJ shows a small growth in Revenue. In the last year, the Revenue has grown by 1.98%.
- 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)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.
- Based on estimates for the next years, SJ will show a small growth in Revenue. The Revenue will grow by 4.35% on average per year.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- SJ is valuated correctly with a Price/Earnings ratio of 14.53.
- 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 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 13.83 indicates a correct valuation of SJ.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SJ indicates a rather cheap valuation: SJ is cheaper than 83.33% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SJ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
- 75.00% of the companies in the same industry are more expensive than SJ, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, SJ is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.51 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
- SJ's 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%. 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
- 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
- SJ pays out 19.76% 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.
DP19.76%
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%.