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Stella-Jones Inc T.SJ

Alternate Symbol(s):  STLJF

Stella-Jones Inc. is a Canada-based manufacturer of pressure-treated wood products. The Company is focused on supporting infrastructure that is essential to the delivery of electrical distribution and transmission, and the operation and maintenance of railway transportation systems. It supplies the electrical utilities and telecommunication companies with wood utility poles and North America’s short line and commercial railroad operators with railway ties and timbers. The Company's infrastructure product categories also include industrial products, namely wood for railway bridges and crossings, marine and foundation pilings, construction timbers 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.


TSX:SJ - Post by User

Bullboard Posts
Post by TechTargeton Oct 28, 2015 12:35pm
218 Views
Post# 24234885

Advanced Stock Analysis for SJ

Advanced Stock Analysis for SJI don't have a position on SJ but I follow on behalf of someone who is more "buy and hold".  Grampa type of stock.  I'm too aggressive short term.  For any longer term investor, here is a stock analysis.  I modified it because the tool works well on this type of stock and I'm not here to promote the tool (and the tool fails miserably on high growth stocks). Works great on these grampa type stocks... :-)  LOL

SJ is undervalued compared to its Price of $46.62 per share, has well above average safety, and is currently rated a Buy.

   
Stella-Jones (SJ)

 
     
Building (Wood Products)

 
   
 
Company Information

Business: Stella-Jones Inc. produces and markets industrial pressure treated wood products, and treated consumer lumber products and services to lumber retailers and wholesalers for outdoor applications in North America. Its products include railway ties for rail transportation companies; treated wood utility poles for utility and telecommunication companies; and industrial lumber products for construction and maritime applications, and treated consumer lumber products for the residential market.

Capital Appreciation

Value: Value is a measure of a stock's current worth. SJ has a current Value of $57.83 per share. Therefore, it is undervalued compared to its Price of $46.62 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. [Stock Analysis Tool] advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.

RV (Relative Value): RV is an indicator of long-term price appreciation potential. SJ has an RV of 1.46, which is excellent on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. [Stock Analysis Tool] favors the purchase of stocks with RV ratings above 1.00.

RS (Relative Safety): RS is an indicator of risk. SJ has an RS rating of 1.44, which is excellent on a scale of 0.00 to 2.00. RS is computed from an analysis of the consistency and predictability of a company's financial performance, debt to equity ratio, sales volume, business longevity, price volatility and other factors. A stock with an RS rating greater than 1.00 is safer and more predictable than the average stock in the [Stock Analysis Tool] database. [Stock Analysis Tool] favors the purchase of stocks of companies with consistent, predictable financial performance.

RT (Relative Timing): RT is a fast, smart, accurate indicator of a stock's price trend. SJ has a Relative Timing rating of 1.22, which is good on a scale of 0.00 to 2.00.  RT is computed from an analysis of the direction, magnitude, and dynamics of a stock's price movements over one day, one week, one quarter and one year time periods. Once a stock's price has established a strong trend, it is expected to continue in that trend for the short-term. If a trend dissipates, RT will gravitate toward 1.00. RT will explode from bottoms, dive from tops, and reflect changes in price momentum. [Stock Analysis Tool] favors the purchase of stocks with RT ratings above 1.00.

VST (VST-Vector): VST is the master indicator for ranking every stock in the [Stock Analysis Tool] database. SJ has a VST rating of 1.36, which is very good on a scale of 0.00 to 2.00. VST is computed from the square root of a weighted sum of the squares of RV, RS, and RT. Stocks with the highest VST ratings have the best combinations of Value, Safety and Timing. These are the stocks to own for above average, long-term capital appreciation. [Stock Analysis Tool] advocates the purchase of safe, undervalued stocks rising in price.

Recommendation (REC): [Stock Analysis Tool] gives a Buy, Sell, Hold recommendation on every stock, every day. SJ has a Buy recommendation. REC reflects the cumulative effect of all the [Stock Analysis Tool] parameters working together. These parameters are designed to help investors buy safe, undervalued stocks rising in price. They also help investors avoid or sell risky, overvalued stocks falling in price. [Stock Analysis Tool] recommends that investors buy high VST-Vector, Buy-rated stocks in rising markets.

Stop (Stop-Price): Stop is an indicator of when to sell a long position or cover a short position.  SJ has a Stop of $42.73 per share. This is $3.89 below SJ's current closing Price. A stock's Stop is computed from a 13 week moving average of its closing prices, and is fine-tuned according to the stock's fundamentals. High RV, high RS stocks have lower Stops, and low RV, low RS stocks have higher Stops. In the [Stock Analysis Tool] system, a stock gets a 'B' or 'H' recommendation if its Price is above its Stop and an 'S' recommendation if its Price is below its Stop.

GRT (Earnings Growth Rate): GRT reflects a company's one to three year forecasted earnings growth rate in percent per year. SJ has a forecasted Earnings Growth Rate of 20.00%, which [Stock Analysis Tool] considers to be very good. GRT is computed from historical, current and forecasted earnings data. It is updated each week for every stock in the [Stock Analysis Tool] database. GRT often foretells a stock's future price trend. If a stock's GRT trend is upward, the stock's price will likely rise. If GRT is trending downward, the stock's Price will probably fall. [Stock Analysis Tool] favors the purchase of stocks whose GRT is rising and is greater than the sum of current inflation and interest rates, as shown weekly in our investment climate report.

EPS (Earnings per Share): EPS stands for leading 12 months Earnings Per Share. SJ has a forecasted EPS of $2.36 per share. [Stock Analysis Tool] determines this forecast from a combination of recent earnings performance and traditional fiscal and/or calendar year earnings forecasts.

P/E (Price to Earnings Ratio): P/E is a popular measure of stock valuation which shows the dollars required to buy one dollar of earnings. SJ has a P/E of 19.75. This ratio may be deemed to be high or low depending upon your frame of reference. The average P/E of all the stocks in the [Stock Analysis Tool] database is 84.87. P/E is computed daily using the formula: P/E = Price/EPS.

EY (Earnings Yield): EY reflects earnings per share as a percent of Price. EY is related to P/E via the formula, EY = 100 / (P/E), and may be used in place of P/E as a measure of valuation. EY has the advantages that it is always determinate and can reflect negative earnings. SJ has an EY of 5.06 percent. This is above the current average of 1.18% for all the stocks in the [Stock Analysis Tool] database. EY equals 100 x (EPS/Price).

GPE (Growth to P/E Ratio): GPE is another popular measure of stock valuation. It compares earnings growth rate to P/E ratio. SJ has a GPE rating of 1.02. High growth stocks are believed to be able to justify high P/E ratios. A stock is commonly considered to be undervalued when GPE is greater than 1.00 and overvalued when GPE is below 1.00. Unfortunately, this rule of thumb does not take into account the effect of interest rates on P/E ratios. The operative GPE ratio of 1.00 is valid when and only when interest rates equal 10%. With long-term interest rates currently at 4.41%, the operative GPE ratio is 0.19. Therefore, SJ may be considered to be undervalued.

Dividend Information

DIV (Dividend): [Stock Analysis Tool] reports annual, regular, cash dividends as indicated by the most recent payments. Special distributions, one-time payments, stock dividends, etc., are not generally included in DIV. SJ pays an annual dividend of $0.32 per share.

DY (Dividend Yield): DY reflects dividend per share as a percent of Price. SJ has a Dividend Yield of 0.69 %. This is below the current average of 1.17% for all the stocks in the [Stock Analysis Tool] database. DY equals 100 x (DIV/Price). It is useful to compare DY with EY. If DY is not significantly lower than EY, the dividend payment may be in jeopardy.

DS (Dividend Safety): DS is an indicator of the assurance that regular cash dividends will be declared and paid at current or at higher rates for the foreseeable future. SJ has a Dividend Safety of 99 which is excellent on a scale of 0 to 99. Stocks with DS values above 75 typically have RS values well above 1.00 and EY levels that are much higher than DY.

DG (Dividend Growth Rate):   Dividend Growth is a forecasted annual growth rate of a company's dividend based on historical dividend payments and dividend predictability. It is a subtle yet important indicator of a companys financial performance. It also provides some insight into the boards outlook on the companys ability to increase earnings. SJ has a Dividend Growth of 16% This is above the current average of 1.17% for all the stocks in the [Stock Analysis Tool] database.

YSG (YSG-Vector): YSG is an indicator which combines DY, DS and DG into a single value, and allows direct comparison of all dividend-paying stocks in the database. SJ has a YSG rating of 1.24 which is good. Stocks with the highest YSG values have the best combinations of Dividend Yield, Safety and Growth. These are the stocks to buy for well above current income and long-term growth.

Price-Volume Data

Price: SJ closed on Tuesday, October 27, 2015 at $46.62 per share.

Open:SJ opened trading at a price of $46.48 per share on Tuesday, October 27, 2015.

High: SJ traded at a High price of $46.79 per share on Tuesday, October 27, 2015.

Low: SJ traded at a Low price of $46.33 per share on Tuesday, October 27, 2015.

Close: SJ closed on Tuesday, October 27, 2015 at $46.62 per share. (Close is also called Price in the [Stock Analysis Tool] system)

Range: Range reflects the difference between the High and Low prices for the day. SJ traded with a range of $0.46 per share on Tuesday, October 27, 2015.

$ Change: SJ up 0.10 from the prior day's closing Price.

%PRC: SJ's Price changed 0.22% from the prior day's closing price.

Volume: SJ traded 73,227 shares on Tuesday, October 27, 2015.

AvgVol: AvgVol is the 50 day moving average of daily volume as computed by [Stock Analysis Tool]. SJ has an AvgVol of 150,000 shares traded per day.

%Vol: %Vol reflects the percent change in today's trading volume as compared to the AvgVol. %Vol equals ((Volume - AvgVol) / AvgVol ) * 100. SJ had a %Vol of -51.18% on Tuesday, October 27, 2015

CI (Comfort Index): CI is an indicator which reflects a stock's ability to resist severe and/or lengthy price declines.SJ has a CI rating of 1.53, which is excellent on a scale of 0.00 to 2.00. CI is quite different from RS in that it is based solely upon a stock's long-term price history. [Stock Analysis Tool] advocates the purchase of high CI stocks.

Sales / Market Capitalization Information

Sales: SJ has annual sales of 1,415,000,000

Sales Growth: Sales Growth is the Sales Growth Rate in percent over the last 12 months. SJ has a Sales Growth of 24.00% per year. This is excellent. Sales Growth is updated each week for every stock. It is often useful to compare Sales Growth to Earnings Growth to gain an insight into a company's operations.

Sales Per Share (SPS): SJ has annual sales of $20.50 per share. SPS can be used as a measure of valuation when comparing stocks within an Industry Group.

Price to Sales Ratio (P/S): SJ has a P/S of 2.27. This ratio is also used as a measure of valuation. Here, too, it is useful when comparing stocks within an Industry Group.

Shares: SJ has 69,000,000 shares of stock outstanding.

Market Capitalization: SJ has a Market Capitalization of 3,220,000,000. Market Capitalization is calculated by multiplying price times shares outstanding.

Business Sector: SJ has been assigned to the Building Business Sector. [Stock Analysis Tool] classifies stocks into over 200 Industry Groups and 40 Business Sectors.

Industry Group: SJ has been assigned to the Building (Wood Products) Industry Group. [Stock Analysis Tool] classifies stocks into over 200 Industry Groups and 40 Business Sectors.


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