Stella-Jones Inc.
Stella-Jones Inc. Fundamental Analysis
Stella-Jones Inc. (SJ.TO) shows moderate financial fundamentals with a PE ratio of 15.20, profit margin of 9.65%, and ROE of 16.67%. The company generates $3.5B in annual revenue with moderate year-over-year growth of 4.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SJ.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakSJ.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSJ.TO trades at attractive valuation levels.
Growth Score
WeakSJ.TO faces weak or negative growth trends.
Financial Health Score
ExcellentSJ.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateSJ.TO maintains healthy but balanced margins.
Key Financial Metrics
Is SJ.TO Expensive or Cheap?
P/E Ratio
SJ.TO trades at 15.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SJ.TO's PEG of -46.35 indicates potential undervaluation.
Price to Book
The market values Stella-Jones Inc. at 2.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.94 times EBITDA. This is generally considered low.
How Well Does SJ.TO Make Money?
Net Profit Margin
For every $100 in sales, Stella-Jones Inc. keeps $9.65 as profit after all expenses.
Operating Margin
Core operations generate 14.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.67 in profit for every $100 of shareholder equity.
ROA
Stella-Jones Inc. generates $8.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Stella-Jones Inc. produces operating cash flow of $556.62M, showing steady but balanced cash generation.
Free Cash Flow
Stella-Jones Inc. generates strong free cash flow of $449.69M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.19 in free cash annually.
FCF Yield
SJ.TO converts 8.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-46.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How SJ.TO Stacks Against Its Sector Peers
| Metric | SJ.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.20 | 24.08 | Better (Cheaper) |
| ROE | 16.67% | 921.00% | Weak |
| Net Margin | 9.65% | -113338.00% (disorted) | Weak |
| Debt/Equity | 0.92 | 0.53 | Weak (High Leverage) |
| Current Ratio | 7.40 | 5.09 | Strong Liquidity |
| ROA | 8.19% | -9816.00% (disorted) | Weak |
SJ.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Stella-Jones Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
95.09%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
138.61%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
453.48%
Industry Style: Cyclical, Commodity, Value
High Growth