Stella-Jones Inc
TSX:SJ
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P/FCFE
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.
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.
Valuation Scenarios
If P/FCFE returns to its 3-Year Average (23), the stock would be worth CA$138.32 (65% upside from current price).
| 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
Peer Comparison
| Market Cap | P/FCFE | P/E | ||||
|---|---|---|---|---|---|---|
| CA |
|
Stella-Jones Inc
TSX:SJ
|
4.6B CAD | 14 | 13.5 | |
| CN |
|
Chengxin Lithium Group Co Ltd
SZSE:002240
|
55B CNY | 68.9 | -63.1 | |
| SE |
|
Svenska Cellulosa SCA AB
STO:SCA B
|
73.7B SEK | 89 | 23 | |
| US |
|
Louisiana-Pacific Corp
NYSE:LPX
|
5B USD | 61.2 | 34.2 | |
| CA |
|
West Fraser Timber Co Ltd
TSX:WFG
|
6.7B CAD | -20.1 | -5.3 | |
| CN |
|
Zhongfu Straits Pingtan Development Co Ltd
SZSE:000592
|
20.4B CNY | 226 | -188.4 | |
| IN |
C
|
Century Plyboards (India) Ltd
NSE:CENTURYPLY
|
177.2B INR | 174.8 | 74.7 | |
| CN |
|
Dehua TB New Decoration Material Co Ltd
SZSE:002043
|
12.3B CNY | 12.2 | 16.8 | |
| CA |
|
Canfor Corp
TSX:CFP
|
1.4B CAD | -7.1 | -1.8 | |
| BR |
|
Dexco SA
BOVESPA:DXCO3
|
4.7B BRL | 3.4 | 3 616.9 | |
| CN |
J
|
JILIN QUANYANGQUAN Co Ltd
SSE:600189
|
5.9B CNY | 57.4 | 393.2 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.2 |
| Median | 22 |
| 70th Percentile | 36 |
| Max | 116 589.8 |
Other Multiples
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.