# Stella-Jones Inc. (SJ.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Basic Materials / Paper & Forest Products. Price C$68.77, market value C$3.8 billion.

## Valuation
- **P/E (trailing): 14.6×** (5-yr avg 12.3×, 3-yr avg 13.1×). Stella-Jones Inc. trades at 14.6× trailing earnings, close to its own five-year average of 12.3×. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 11.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.48**. A PEG of 1.48 is in the range usually read as fairly priced for its growth.
- **Price / sales: 1.1×**. Each dollar of revenue is priced at 1.1×.
- **Price / book: 1.7×**. The shares trade at 1.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 9.5×**. Enterprise value is 9.5× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 13.1%** (5-yr avg 5.6%). Free cash flow equals 13.1% of the market value, above its five-year average of 5.6%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.9%**. The inverse of the P/E: 6.9% of the price is earned each year.

## Profitability
- **Gross margin: 18.7%**. Stella-Jones Inc. keeps 18.7% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 12.6%**. 12.6% of revenue is left after running the business.
- **Net margin: 9.7%**. 9.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.5%**. 16.5% on shareholders' equity is solid.
- **Return on invested capital: 9.2%**. Return on all capital, debt included, is 9.2%.
- **Return on assets: 6.3%**. Each dollar of assets produces 6.3% of profit.

## Growth
- **Revenue growth (1 yr): 0.7%** (3-yr 4.4%/yr, 5-yr 6.5%/yr). Revenue grew 0.7% over the last year, against 6.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 7.6%** (3-yr 15.7%/yr, 5-yr 14.3%/yr). Earnings per share rose 7.6%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 45.6%/yr**. Free cash flow has compounded at 45.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.81**. Debt is 0.81 times equity, moderate leverage.
- **Net debt / EBITDA: 2.8×**. It would take 2.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 6.7×**. Operating profit covers interest 6.7× over, a safe margin.
- **Current ratio: 7.40** (quick 1.34). Current assets cover the next year's liabilities 7.40 times.
- **Altman Z-score: 3.53**. A Z-score of 3.53 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.98%** (C$1.30 per share, trailing). Stella-Jones Inc. yields 1.98%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 20%** (14% of free cash flow). 20% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 21**. 21 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 15.6%/yr** (1-yr 10.7%). The dividend has compounded at 15.6% a year over five years, doubling roughly every 5 years at that pace.

## Price and momentum
- **Total return (1 yr): -11.7%** (YTD -18.6%, 3-mo -15.8%). The shares are down 11.7% over twelve months including dividends.
- **From 52-week high: -32.1%** (1.5% above the low). Trading 32% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 32**. An RSI of 32 is neutral.
- **Beta (1 yr): 0.41** (volatility 26%). Beta of 0.41 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SJ.TO · Page: https://foliofundamentals.com/stocks/sj.to

Not investment advice.