Stella-Jones Inc (TSE:SJ)
TSX:SJ
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Stella-Jones
(TSX:SJ)
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Rating:68Neutral
Price Target:
C$103.00
▲(10.52% Upside)
Action:ReiteratedDate:03/28/26
The score is driven primarily by solid profitability and improved recent cash generation, balanced against a 2025 revenue decline and higher leverage. Technical indicators are mostly neutral with slightly negative momentum, while valuation appears reasonable for the fundamentals.
Positive Factors
Improved Free Cash Flow
Free cash flow rebounded materially in 2024–2025 to $454M, providing durable internal funding for maintenance capex, reinvestment, and shareholder returns. Strong FCF improves resilience to cyclical downturns and supports strategic choices like deleveraging or selective M&A over the next 2–6 months.
Negative Factors
Recent Revenue Decline
An 8.6% revenue drop in 2025 signals meaningful demand or price pressure in end markets. Persistent revenue weakness would compress absolute margins, reduce cash conversion, and make financing and reinvestment more challenging given fixed treatment capacity and working-capital needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Free Cash Flow
Free cash flow rebounded materially in 2024–2025 to $454M, providing durable internal funding for maintenance capex, reinvestment, and shareholder returns. Strong FCF improves resilience to cyclical downturns and supports strategic choices like deleveraging or selective M&A over the next 2–6 months.
Read all positive factors
Stella-Jones (SJ) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.09B
Dividend Yield1.43%
Average Volume (3M)95.11K
Price to Earnings (P/E)14.0
Beta (1Y)0.51
Revenue Growth1.98%
EPS Growth7.05%
CountryCA
Employees3,000
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.91
Shares Outstanding54,605,793
10 Day Avg. Volume96,619
30 Day Avg. Volume95,114
Financial Highlights & Ratios
PEG Ratio1.84
Price to Book (P/B)2.31
Price to Sales (P/S)1.35
P/FCF Ratio10.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$98.67Price Target Upside5.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)6.16
Revenue Forecast (FY)C$3.71B
Stella-Jones Business Overview & Revenue Model
Company Description
Stella-Jones Inc. produces and markets pressure-treated wood products in Canada and the United States. It offers railway ties and timbers for railroad operators; and wood utility poles for electrical utilities and telecommunication companies. The ...
How the Company Makes Money
Stella-Jones makes money primarily by selling pressure-treated wood products to customers in rail, utility, and residential construction markets. Its key revenue streams generally include: (1) Railway ties and industrial products: sales of treated...
Stella-Jones Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with strong sales growth, strategic acquisitions, and robust cash generation being offset by challenges in railway ties volumes and spot market pricing. The company remains optimistic about its strategic initiatives and long-term growth trajectory.Positive Updates
Organic Sales Growth
The company reported a 2% organic sales growth compared to the prior year quarter, driven by higher infrastructure volumes, primarily for utility poles.
Negative Updates
Railway Ties Volume Decline
Railway ties sales were impacted by a Class 1 customer treating their railway ties internally, resulting in a mid-single-digit year-over-year decline expectation.
Read all updates
Q3-2025 Updates
Positive
Negative
Organic Sales Growth
The company reported a 2% organic sales growth compared to the prior year quarter, driven by higher infrastructure volumes, primarily for utility poles.
Read all positive updates
Company Guidance
During Stella-Jones' third quarter 2025 earnings call, the company provided detailed guidance and metrics reflecting its financial health and strategic initiatives. Organic sales growth was reported at 2%, boosted by higher infrastructure volumes, with total sales up 5% year-over-year due to acquisitions. The utility poles segment saw sales increase to $480 million, a rise from $448 million in 2024. However, spot market pricing pressures led to a 3% decline in utility pole pricing. The railway ties segment showed a slight increase in sales to $211 million, driven by improved pricing, while residential lumber sales rose to $201 million due to higher inventory costs. The company maintained strong EBITDA margins of 17.8%, with an EBITDA of $171 million. Cash flows from operations exceeded $500 million over the past 12 months, supporting strategic investments and shareholder returns, including a new normal course issuer bid for share buybacks. The company also highlighted its ongoing commitment to ESG initiatives, such as reducing greenhouse gas emissions. Looking ahead, Stella-Jones expects utility pole sales growth in the low-single-digit range for 2025 and is focusing on strategic acquisitions like Brooks to enhance its product offerings and market presence.Stella-Jones Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
64
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.49B | 3.47B | 3.32B | 3.06B | 2.75B |
| Gross Profit | 689.00M | 724.00M | 688.00M | 524.00M | 456.00M |
| EBITDA | 637.00M | 633.00M | 608.00M | 448.00M | 400.00M |
| Net Income | 337.00M | 319.00M | 326.00M | 241.00M | 227.00M |
Balance Sheet | |||||
| Total Assets | 4.12B | 4.10B | 3.71B | 3.07B | 2.67B |
| Cash, Cash Equivalents and Short-Term Investments | 44.00M | 50.00M | 0.00 | -167.00M | -144.00M |
| Total Debt | 1.88B | 1.70B | 1.61B | 1.11B | 878.00M |
| Total Liabilities | 2.08B | 2.16B | 2.06B | 1.52B | 1.22B |
| Stockholders Equity | 2.04B | 1.94B | 1.65B | 1.56B | 1.45B |
Cash Flow | |||||
| Free Cash Flow | 454.00M | 265.00M | -58.00M | 147.00M | 187.00M |
| Operating Cash Flow | 557.00M | 408.00M | 107.00M | 255.00M | 251.00M |
| Investing Cash Flow | -337.00M | -137.00M | -258.00M | -154.00M | -193.00M |
| Financing Cash Flow | -226.00M | -221.00M | 151.00M | -101.00M | -58.00M |
Stella-Jones Technical Analysis
Neutral
93.20
Price Trends
94.43
Negative
90.00
Positive
84.14
Positive
Market Momentum
-0.35
Positive
47.90
Neutral
57.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SJ, the sentiment is Neutral. The current price of 93.2 is below the 20-day moving average (MA) of 94.00, below the 50-day MA of 94.43, and above the 200-day MA of 84.14, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 57.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SJ.
Stella-Jones Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$5.09B | 13.97 | 17.08% | 1.43% | 1.98% | 7.05% | |
66 Neutral | C$319.10M | 5.90 | 14.25% | 7.35% | -28.86% | -48.20% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
52 Neutral | C$7.10B | ― | -18.45% | 2.21% | -6.67% | -168.27% | |
48 Neutral | C$1.65B | -1.73 | -27.04% | ― | 1.76% | 34.61% | |
47 Neutral | C$692.53M | -1.37 | -25.24% | ― | -3.63% | 31.61% | |
46 Neutral | C$156.37M | -1.77 | -12.20% | ― | 2.06% | -46.23% |
* Basic Materials Sector Average
TSE:SJ
Stella-Jones
93.20
29.66
46.68%
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Stella-Jones Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Stella-Jones Hits 2025 Targets and Expands U.S. Infrastructure Footprint
Positive
Feb 26, 2026
Stella-Jones reported 2025 sales of $3.5 billion, in line with its guidance, with operating income of $516 million and EBITDA of $661 million, reflecting an 18.9% margin and strong cash flow of $557 million. The company met or exceeded its 2023-20...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.