Comparison
Why is Stella-Jones, Inc. ?
1
High Management Efficiency with a high ROCE of 14.92%
2
High Debt company with Weak Long Term Fundamental Strength
- OPERATING CASH FLOW(Y) Highest at CAD 501 MM
- INTEREST COVERAGE RATIO(Q) Highest at 1,321.43
- DEBT-EQUITY RATIO (HY) Lowest at 78.29 %
3
With ROE of 15.64%, it has a fair valuation with a 2.25 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -12.33%, its profits have fallen by -12.2%
4
Majority shareholders : Mutual Funds
5
Underperformed the market in the last 1 year
- Even though the market (S&P/TSX 60) has generated returns of 22.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.33% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Stella-Jones, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Stella-Jones, Inc.
15.56%
-0.33
28.57%
S&P/TSX 60
19.1%
1.54
14.62%
Quality key factors
Factor
Value
Sales Growth (5y)
8.11%
EBIT Growth (5y)
12.33%
EBIT to Interest (avg)
10.18
Debt to EBITDA (avg)
2.29
Net Debt to Equity (avg)
0.73
Sales to Capital Employed (avg)
1.07
Tax Ratio
23.17%
Dividend Payout Ratio
20.33%
Pledged Shares
0
Institutional Holding
0.13%
ROCE (avg)
14.92%
ROE (avg)
16.83%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
2.33
EV to EBIT
12.05
EV to EBITDA
9.44
EV to Capital Employed
1.80
EV to Sales
1.72
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
14.91%
ROE (Latest)
15.64%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 501 MM
INTEREST COVERAGE RATIO(Q)
Highest at 1,321.43
DEBT-EQUITY RATIO
(HY)
Lowest at 78.29 %
-6What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
RAW MATERIAL COST(Y)
Grown by 7.59% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.94%
DIVIDEND PER SHARE(HY)
Lowest at CAD 7.94
Here's what is working for Stella-Jones, Inc.
Operating Cash Flow
Highest at CAD 501 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Interest Coverage Ratio
Highest at 1,321.43
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at 78.29 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Stella-Jones, Inc.
Debtors Turnover Ratio
Lowest at 7.94%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend per share
Lowest at CAD 7.94
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (CAD)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 7.59% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






