Stella-Jones Inc
TSX:SJ

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Stella-Jones Inc
TSX:SJ
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Price: 84.06 CAD 1.74% Market Closed
Market Cap: CA$4.6B

P/FCFE

14
Current
39%
Cheaper
vs 3-y average of 23

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
14
=
Market Cap
CA$5.1B
/
Free Cash Flow to Equity
CA$325m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
14
=
Market Cap
CA$5.1B
/
Free Cash Flow to Equity
CA$325m

Valuation Scenarios

Stella-Jones Inc is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (23), the stock would be worth CA$138.32 (65% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+91%
Average Upside
61%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 14 CA$84.06
0%
3-Year Average 23 CA$138.32
+65%
5-Year Average 18.5 CA$111.24
+32%
Industry Average 26.7 CA$160.82
+91%
Country Average 22 CA$132.55
+58%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
P/E Multiple
Earnings Growth PEG
CA
Stella-Jones Inc
TSX:SJ
Average P/E: 596
13.5
8%
1.7
CN
Chengxin Lithium Group Co Ltd
SZSE:002240
Negative Multiple: -63.1 N/A N/A
SE
Svenska Cellulosa SCA AB
STO:SCA B
23
9%
2.6
US
Louisiana-Pacific Corp
NYSE:LPX
34.2
37%
0.9
CA
West Fraser Timber Co Ltd
TSX:WFG
Negative Multiple: -5.3 N/A N/A
CN
Zhongfu Straits Pingtan Development Co Ltd
SZSE:000592
Negative Multiple: -188.4 N/A N/A
IN
C
Century Plyboards (India) Ltd
NSE:CENTURYPLY
74.7
48%
1.6
CN
Dehua TB New Decoration Material Co Ltd
SZSE:002043
16.8
18%
0.9
CA
Canfor Corp
TSX:CFP
Negative Multiple: -1.8 N/A N/A
BR
Dexco SA
BOVESPA:DXCO3
3 616.9
710%
5.1
CN
J
JILIN QUANYANGQUAN Co Ltd
SSE:600189
393.2
50%
7.9

Market Distribution

In line with most companies in Canada
Percentile
32nd
Based on 1 366 companies
32nd percentile
14
Low
0 — 13.2
Typical Range
13.2 — 36
High
36 —
Distribution Statistics
Canada
Min 0
30th Percentile 13.2
Median 22
70th Percentile 36
Max 116 589.8

Stella-Jones Inc
Glance View

Stella-Jones Inc. began its journey in the early 1990s as a modest company with its roots deeply embedded in the production of treated wood products. Initially, Stella-Jones focused on railway ties and utility poles, two critical components of North America's infrastructure. As the years progressed, the company carved a niche for itself by capitalizing on the consistent demand for these products and the rigorous standards they must meet for safety and longevity. The acquisition of various wood-treating facilities across the continent allowed Stella-Jones to bolster its production capacity and enhance its service offerings. This strategic expansion positioned Stella-Jones as a leading provider to key industries like railway operators, electrical utilities, and telecommunication customers across Canada and the United States. Fast forward to today, Stella-Jones generates revenue through a well-diversified portfolio that extends beyond railway ties and utility poles to other treated wood products, including residential lumber, industrial products, and marine timber. The company's business model thrives on long-term contracts and agreements, securing a stable income flow by consistently meeting industry standards and ensuring timely delivery to its clients. Stella-Jones further differentiates itself through its commitment to sustainable practices, prominently sourcing wood from responsibly managed forests. This approach not only aligns with growing environmental concerns but also fortifies its supply chain, ensuring it remains a pivotal player in the wood products sector by providing essential materials that support vital infrastructure.

SJ Intrinsic Value
77.33 CAD
Overvaluation 8%
Intrinsic Value
Price CA$84.06
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