Stella-Jones Inc. SJ

MaterialsPaper & Forest ProductsCanada

Last close 66.96 CAD on Nov 3, 2026, −20.3% year to date

Quant rating

Quant rating B Rank 56 of 154 in Materials

Growth C 63 of 154
Valuation B 34 of 154
Quality B 36 of 154
Revisions C 90 of 154
Momentum C 105 of 154

Wall Street consensus Hold (2.56)Average target 84.89 CAD +26.8%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 3.7B
Enterprise value: 5.2B
52-week range: 63.58 – 101.31
3-year range: 63.07 – 101.31
Dividend yield: 2.03%
Beta (5 years): 0.23
Shares outstanding: 54.6M
Next earnings: Nov 4, 2026

About the company

Stella-Jones Inc. is a manufacturer of products focused on supporting infrastructure that is essential to the delivery of electrical distribution and transmission, and the operation and maintenance of railway transportation systems. The Company supplies major electrical utility companies with treated wood utility poles and North America’s short line and commercial railroad operators with treated wood railway ties and timbers. It also supports infrastructure with industrial products, namely timbers for railway bridges, crossings and construction, marine and foundation pilings, and coal tar-based products. Additionally, the Company manufactures and distributes premium treated residential lumber and accessories to Canadian and American retailers for outdoor applications, with a significant portion of the business devoted to servicing Canadian customers through its national manufacturing and distribution network. The Company has treating facilities across Canada and the United States.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	3,492	3,469	3,319	3,065	2,750	–
Revenue growth	0.7%	4.5%	8.3%	11.5%	7.8%	6.5%
EPS (basic, normalized)	6.09	5.66	5.62	3.93	3.49	–
EPS growth	7.6%	0.7%	43.0%	12.6%	–	–
Gross margin	20.2%	20.9%	20.7%	17.1%	16.6%	19.1%
Net margin	9.7%	9.2%	9.8%	7.9%	8.3%	9.0%
ROE	16.9%	17.8%	20.3%	16.0%	16.1%	17.4%

Balance sheet, last quarter
Cash & short-term investments (mil)	138
Current ratio	5.25x
Long-term debt (mil)	1,440
Net debt (mil)	1,508
Total equity (mil)	2,183
Net debt / equity	0.69x
Net debt / EBITDA	2.28x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	3,492	+0.7%	1.5x	661	+5.2%	7.8x	6.09	+7.6%	11.0x
2026	3,605	+3.2%	1.4x	596	−9.9%	8.7x	5.15	−15.4%	13.0x
2027	3,718	+3.1%	1.4x	651	+9.3%	7.9x	6.12	+18.9%	10.9x
2028	3,986	+7.2%	1.3x	699	+7.3%	7.4x	7.01	+14.5%	9.5x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	3,605	0.0%	−0.7%	−1.2%	5.15	0.0%	−10.7%	−11.7%
2027	3,718	−0.2%	−1.2%	−2.1%	6.12	−0.6%	−3.9%	−5.1%
2028	3,986	−0.4%	−0.7%	−0.9%	7.01	−3.3%	−0.6%	−2.6%

Earnings surprises EPS beat in 1 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	775	1,049	915	730	773	1,034	958	727	791	1,042
Sales mean (mil)	771	1,056	999	693	806	1,070	957	755	811	1,084
Surprise	+0.5%	−0.7%	−8.4%	+5.3%	−4.1%	−3.3%	+0.1%	−3.7%	−2.5%	−3.9%
EPS reported	1.36	1.94	1.42	0.93	1.67	1.91	1.59	0.91	1.12	1.59
EPS mean	1.07	1.91	1.75	0.71	1.16	1.80	1.56	0.98	1.20	1.89
Surprise	+27.3%	+1.5%	−18.6%	+30.5%	+44.1%	+6.0%	+2.1%	−7.5%	−6.7%	−15.8%

Peer comparison Paper & Forest Products

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
SJ Stella-Jones Inc.	3.7B	2.28x	9.7%	1.67x	13.0x	10.9x	8.7x	7.9x
SUZ Suzano SA	16.5B	–	–	–	5.9x	7.4x	–	–
SVCBY Svenska Cellulosa Aktiebolaget SCA	12.2B	–	–	–	–	–	–	–
CFP Canfor Corporation	1.8B	−164.05x	−14.9%	0.72x	−13.3x	−89.4x	10.1x	6.5x
SLVM Sylvamo Corp	1.8B	1.88x	3.9%	1.32x	24.5x	6.5x	6.8x	4.1x
IFP Interfor Corporation	893M	−5.85x	−12.3%	0.71x	−12.6x	13.5x	7.6x	5.7x
Mean		−41.44x	−3.4%	1.11x	3.5x	−10.2x	8.3x	6.0x
Median		−1.99x	−4.2%	1.02x	5.9x	7.4x	8.1x	6.1x

Technical analysis

1M+2.0%
3M−13.0%
1Y−13.5%
3Y−6.0%

Financial statements in millions of CAD

Income statement in millions of CAD, fiscal years

Income statement, Stella-Jones Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	3,492	3,469	3,319	3,065	2,750	2,551
Cost of revenue	2,787	2,745	2,631	2,541	2,294	2,105
Gross profit	705	724	688	524	456	446
Selling, general & administrative expenses	197	191	166	142	116	111
Research & development	–	–	–	–	–	–
Depreciation/amortization	16.0	15.0	15.0	15.0	11.0	14.0
Interest expense (income), operating	–	–	–	–	3.0	12.0
Unusual expense (income)	−28.0	–	–	–	–	–
Other operating expenses	4.0	15.0	8.0	8.0	0	0
Operating income	516	503	499	359	326	309
Net interest income (expense)	−69.0	−88.0	−68.0	−33.0	−23.0	−25.0
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	0	0	0	0	0	0
Net income before taxes	447	415	431	326	303	284
Provision for taxes	110	96.0	105	85.0	76.0	74.0
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	337	319	326	241	227	210
Extraordinary items	–	–	–	–	–	–
Net income	337	319	326	241	227	210
EBIT, normalized	488	503	499	359	329	321
EBITDA, normalized	633	633	608	448	403	397
Basic EPS, normalized	6.09	5.66	5.62	3.93	3.49	–

Balance sheet in millions of CAD, fiscal years

Balance sheet, Stella-Jones Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	44.0	50.0	0	0	0	0
Receivables	281	288	319	287	239	208
Total inventory	1,653	1,759	1,580	1,238	1,106	1,075
Prepaid expenses	–	–	–	–	–	–
Other current assets	41.0	42.0	48.0	58.0	43.0	36.0
Total current assets	2,019	2,139	1,947	1,583	1,388	1,319
Property, plant & equipment	1,404	1,359	1,191	915	767	709
Goodwill	434	406	375	369	341	280
Intangibles	243	170	169	171	158	115
Long-term investments	–	–	–	–	–	–
Note receivable	–	–	–	–	–	–
Other long-term assets	17.0	29.0	26.0	35.0	11.0	3.0
Total assets	4,117	4,103	3,708	3,073	2,665	2,426
Liabilities
Accounts payable	–	–	–	–	57.0	55.0
Payable/accrued	112	127	152	157	–	–
Accrued expenses	–	–	–	–	82.0	61.0
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	100	65.0	154	42.0	68.0	44.0
Other current liabilities	61.0	94.0	78.0	60.0	35.0	58.0
Total current liabilities	273	286	384	259	242	218
Long-term debt	1,542	1,638	1,456	1,066	810	701
Minority interest	–	–	–	–	–	–
Other liabilities	263	238	216	191	165	134
Total liabilities	2,078	2,162	2,056	1,516	1,217	1,053
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	187	188	189	194	208	214
Additional paid-in capital	5.0	–	–	–	–	–
Retained earnings (accumulated deficit)	1,681	1,498	1,329	1,192	1,161	1,079
Treasury stock	–	–	–	–	–	–
Other equity	166	255	134	171	79.0	80.0
Total equity	2,039	1,941	1,652	1,557	1,448	1,373
Total liabilities & shareholders' equity	4,117	4,103	3,708	3,073	2,665	2,426

Cash flow statement in millions of CAD, fiscal years

Cash flow statement, Stella-Jones Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	337	319	326	241	227	210
Depreciation, depletion & amortization	145	130	109	89.0	74.0	76.0
Deferred taxes	–	–	–	–	12.0	8.0
Non-cash items	141	188	184	127	75.0	108
Changes in working capital	−66.0	−229	−512	−202	−137	−224
Cash from operations	557	408	107	255	251	178
Investing activities
Capital expenditures	−112	−143	−165	−108	−64.0	−55.0
Other investing cash flows	−225	6.0	−93.0	−46.0	−129	1.0
Cash from investing	−337	−137	−258	−154	−193	−54.0
Financing activities
Financing cash flow items	–	0	2.0	0	1.0	−2.0
Cash dividends paid	−68.0	−63.0	−53.0	−49.0	−47.0	−40.0
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−158	−158	202	−52.0	−12.0	−82.0
Cash from financing	−226	−221	151	−101	−58.0	−124
Foreign exchange effects	–	–	–	–	–	–
Net change in cash	−6.0	50.0	0	0	0	0
Free cash flow	445	265	−58.0	147	187	123

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 3, 2026 after market close.