Stella-Jones (SJ) AI Stock Analysis

• Market Cap: C$4.85B
• Dividend Yield: 1.43%
• Average Volume (3M): 95.11K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.55
• Revenue Growth: 1.98%
• EPS Growth: 7.05%
• Country: CA
• Employees: 3,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.59
• Shares Outstanding: 54,697,212
• 10 Day Avg. Volume: 96,619
• 30 Day Avg. Volume: 95,114
• PEG Ratio: 17.69
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 15.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$92.53
• Price Target Upside: 4.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$96.00 ▲(8.23% Upside)

The score is driven primarily by solid underlying financial performance (healthy margins, improved leverage, and strong recent cash flow). Technicals add moderate support with a stable uptrend versus longer-term averages and neutral momentum. Valuation is reasonable at a mid-teens P/E with a modest dividend, while earnings-call commentary is constructive but tempered by pricing pressure and segment volume headwinds.

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 company also provides residential lumber and accessories to retailers for outdoor applications; industrial products, including bridge and crossing timbers, foundation and marine piling, construction timbers, crane mats, fence posts, and highway guardrail posts; and coal tar-based products. In addition, company manufactures wood preservative and creosote. Stella-Jones Inc. was incorporation in 1992 and is headquartered in Saint-Laurent, Canada.

How the Company Makes Money

Stella-Jones generates revenue through the manufacturing and sale of pressure-treated wood products. The company's primary revenue streams are the sale of utility poles and railway ties. Utility poles are integral to the telecommunications and electrical utility sectors, providing a steady demand for replacements and new installations. Railway ties are critical components for railway maintenance and expansion, ensuring a consistent need within the transportation sector. Stella-Jones also benefits from long-term supply agreements with key customers and partners, which provide a stable and predictable revenue base. Additionally, the company may engage in strategic acquisitions to enhance its product offerings and expand its market reach.

Stella-Jones Financial Statement Overview

Summary

Stella-Jones exhibits strong financial health characterized by consistent revenue growth, solid profitability margins, and effective cash management. The company maintains a balanced approach to leverage and equity, enhancing its financial stability. Overall, Stella-Jones is in a strong financial position with positive growth trends and efficient operations.

Income Statement

Stella-Jones has demonstrated strong revenue growth with a 4.52% increase from 2023 to 2024. The company also maintains healthy profitability margins with a gross profit margin of 20.86% and a net profit margin of 9.19% in 2024. EBIT and EBITDA margins are strong at 14.50% and 18.24%, respectively, indicating efficient operational management.

Balance Sheet

The balance sheet reflects a stable capital structure with a debt-to-equity ratio of 0.88, indicating moderate leverage. The return on equity is solid at 16.44%, showcasing effective use of equity funds. The equity ratio of 47.31% suggests a well-balanced financing mix between debt and equity.

Cash Flow

Stella-Jones reported significant improvement in free cash flow, growing from negative in 2023 to a positive $265 million in 2024. The operating cash flow to net income ratio of 1.28 indicates robust cash generation relative to net income, and the free cash flow to net income ratio of 0.83 reflects efficient capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.50B	3.47B	3.32B	3.06B	2.75B	2.55B
Gross Profit	696.00M	724.00M	688.00M	524.00M	456.00M	446.00M
EBITDA	654.00M	633.00M	608.00M	448.00M	400.00M	385.00M
Net Income	339.00M	319.00M	326.00M	241.00M	227.00M	210.00M
Balance Sheet
Total Assets	4.05B	4.10B	3.71B	3.07B	2.67B	2.43B
Cash, Cash Equivalents and Short-Term Investments	69.00M	50.00M	0.00	-167.00M	-144.00M	-139.00M
Total Debt	1.53B	1.70B	1.61B	1.11B	878.00M	745.00M
Total Liabilities	1.98B	2.16B	2.06B	1.52B	1.22B	1.05B
Stockholders Equity	2.07B	1.94B	1.65B	1.56B	1.45B	1.37B
Cash Flow
Free Cash Flow	391.00M	265.00M	-58.00M	147.00M	187.00M	123.00M
Operating Cash Flow	513.00M	408.00M	107.00M	255.00M	251.00M	178.00M
Investing Cash Flow	-149.00M	-137.00M	-258.00M	-154.00M	-193.00M	-54.00M
Financing Cash Flow	-295.00M	-221.00M	151.00M	-101.00M	-58.00M	-124.00M

Stella-Jones Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SJ, the sentiment is Positive. The current price of 88.7 is above the 20-day moving average (MA) of 87.02, above the 50-day MA of 85.52, and above the 200-day MA of 78.14, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 78.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SJ.

Stella-Jones Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SJ	74 Outperform	C$4.85B	14.53	17.08%	1.43%	1.98%	7.05%
ADN	69 Neutral	C$301.73M	19.83	4.46%	7.35%	-28.86%	-48.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WFG	48 Neutral	$7.68B	-22.58	-3.61%	2.21%	-6.67%	-168.27%
CFP	48 Neutral	C$1.67B	-3.59	-15.06%	―	1.76%	34.61%
WEF	47 Neutral	C$146.86M	-2.30	-12.20%	―	2.06%	-46.23%
IFP	46 Neutral	C$524.31M	-1.81	-20.72%	―	-3.63%	31.61%

Stella-Jones Corporate Events

Stella-Jones Sets Ambitious Financial Targets for 2026-2028

Stella-Jones Inc. has announced its financial objectives and growth plans for 2026-2028, aiming to achieve annual sales of approximately $4 billion by 2028 and maintain an elevated EBITDA margin of 17.5-18.5%. The company plans to shift to an opportunistic share repurchase strategy and introduce an EPS growth target of over 10% to align with its strategic objectives. Supported by a strong balance sheet and recent acquisitions, Stella-Jones is well-positioned for future growth and aims to continue delivering value to its stakeholders. The company’s capital allocation strategy focuses on maintaining investment-grade credit ratings, strategic growth opportunities, and consistent dividend payouts.

The most recent analyst rating on (TSE:SJ) stock is a Hold with a C$89.00 price target. To see the full list of analyst forecasts on Stella-Jones stock, see the TSE:SJ Stock Forecast page.

Stella-Jones Completes Strategic Acquisition of Brooks Manufacturing Co.

Stella-Jones Inc. has completed the acquisition of Brooks Manufacturing Co., a company that produces treated wood distribution crossarms and transmission framing components. This strategic acquisition, valued at approximately US$140 million, is expected to enhance Stella-Jones’ position as a preferred partner for utilities and aligns with its goal to bolster infrastructure across North America. The acquisition is anticipated to have a positive impact on the company’s operations by expanding its product offerings and strengthening its market presence in the utility sector.

The most recent analyst rating on (TSE:SJ) stock is a Hold with a C$89.00 price target. To see the full list of analyst forecasts on Stella-Jones stock, see the TSE:SJ Stock Forecast page.

Stella-Jones Reports Strong Q3 2025 Results and Strategic Acquisition

Stella-Jones reported a strong financial performance in the third quarter of 2025, with sales reaching $958 million, a 5% increase from the previous year, and operating income rising by 4% to $135 million. The company’s strategic acquisition of Brooks, a crossarm manufacturer, aligns with its growth strategy to strengthen its utility sector position and expand its infrastructure offerings. This move is expected to enhance Stella-Jones’ ability to meet rising demand and support long-term growth, highlighting its robust financial health and commitment to investing in future opportunities.

The most recent analyst rating on (TSE:SJ) stock is a Hold with a C$89.00 price target. To see the full list of analyst forecasts on Stella-Jones stock, see the TSE:SJ Stock Forecast page.

Stella-Jones Strengthens Board with Two New Appointments

Stella-Jones Inc. has announced the appointment of Ms. Renée Laflamme and Mr. Sean Donnelly to its Board of Directors, expanding the board to ten members. Ms. Laflamme brings over 25 years of experience in the financial services and insurance sectors, while Mr. Donnelly offers extensive expertise in innovation, technology, and manufacturing. Their appointments are expected to enhance the board’s capabilities and align with Stella-Jones’ strategic priorities, supporting the company’s commitment to infrastructure development and sustainable practices.

The most recent analyst rating on (TSE:SJ) stock is a Hold with a C$88.00 price target. To see the full list of analyst forecasts on Stella-Jones stock, see the TSE:SJ Stock Forecast page.