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Investor Insights

This summary was created by AI, based on 14 opinions in the last 12 months.

Stella-Jones Inc. (SJ-T) has recently experienced a decline in price due to weak earnings and broader market weakness. It trades at a decent valuation, has good free cash flow, a growing balance sheet, and historically strong growth rates. Despite facing challenges such as tariffs and a weaker growth profile, experts believe it presents a solid buying opportunity for long-term investors.

Consensus
Mixed
Valuation
Fair Value
BUY
Stella-Jones Inc.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

SJ saw its price decline recently on weak earnings, and it has also been seeing some weakness alongside the broader markets. It trades at a decent valuation of 12.9X forward earnings, but forward growth estimates are in the low single digits, and analyst estimates have been trending lower. Regardless, it generates good free cash flow, has a decent debt profile, a growing balance sheet, and historical growth rates have been strong. While it could see further weakness based on tariffs and a weaker growth profile, we would be comfortable slowly averaging in here given its solid valuation, high drawdown (30% in the past few months), and long-term strength in management and fundamentals.
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misc industrial products
TOP PICK
Stella-Jones Inc.

Defensive growth at a reasonable price. He's not a trader, but this is the third time he's owned it. Leading NA producer of railway ties (a duopoly) and utility poles (pretty much an oligopoly). Really improved margins. Very strong balance sheet, buying back lots of shares, increasing dividend every year. 

Got hammered recently, as utility pole segment slowed. But there's a huge replacement cycle coming, plus expansion of the electrification grid. Poles will still be the main driver of growth. Great buying opportunity at under 12x earnings. Yield is 2%.

(Analysts’ price target is $88.50)
misc industrial products
SELL
Stella-Jones Inc.

He sold as the technicals and RSI started to deteriorate. Broke down in the summer, has continued to trend downwards. Looks to be support around $65, and around $50. Really struggling right now.

misc industrial products
WAIT
Stella-Jones Inc.
Tariff threat on softwood lumber.

Tough quarter after 3-4 year run of strong demand, with sales and margins increasing. That's taken some confidence away from management, blurred medium-term outlook. Wait for another quarter to see that there's not another leg down.

When things are going well, investors get excited. But when these semi-commodity names face tough times, the multiple can come way down.

misc industrial products
SELL
Stella-Jones Inc.

Uptrend's just been broken. The last low in early 2024 was just below $80 and was broken, now at $71. Could base at some point, and that would be an OK time to buy. But right now, he wouldn't want to be in it.

misc industrial products
BUY ON WEAKNESS
Stella-Jones Inc.

Earnings not as good last quarter (recent for share price weakness). Overall - a strong business that is consistently profitable. Consolidation in sector will help. A great example of a cyclical growth company. Would recommend buying on weakness. 

misc industrial products
DON'T BUY
Stella-Jones Inc.

Pulled back based on underlying demand. Businesses are pretty steady-eddy. Infrastructure buildout would help, but questions surround new US administration. Interest rates ticking up means home renos have ticked down. Don't step in here.

Hurricanes (needing lumber replacement) can't be predicted from one period to the next. Investors want to see predictable, recurring revenue and cashflow.

misc industrial products
HOLD
Stella-Jones Inc.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS was $1.42, missing estimates of $1.75; revenue of $915M missed estimates of $1.01B. EBITDA of $162M missed estimates by 12%. Lower sales of utility poles was the main reason for the miss. Updated 2025 revenue guidance was also below consensus estimates. Margins were weaker as well. Total sales fell 3.6%. Lumber sales fell 19%. Net income fell 27%. It was a big miss from a usually-reliable company. We would not react here, as the utility issue could be temporary. But certainly not a good quarter. 
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misc industrial products
BUY
Stella-Jones Inc.

Owns shares, and will continue to own. Has taken partial profits, but has been considering adding more. Well positioned in utility poll business. Strong brand with excellent prospects. Climate change actually good for the business (replacements with disasters). Strong management tea with excellent return on equity. 

misc industrial products
PARTIAL BUY
Stella-Jones Inc.

Large utility pole business. Strong performance resulting from increased power demand. Unsure of demand for products - would prefer utility providers (not components). 

misc industrial products
Unspecified
Stella-Jones Inc.

Does own shares at this time. Likes company overall - building continues in Canada. A good company to watch. 

misc industrial products
BUY
Stella-Jones Inc.

Likes basic materials in general, the WOOD ETF is performing pretty well. SJ is a special business. Good earnings  growth. He'd be comfortable owning here.

misc industrial products
BUY ON WEAKNESS
Stella-Jones Inc.

Not a monopoly, but biggest market player in railway ties and utility poles. Behemoth. Earnings beat today, solid results, net income up nicely, increased dividend by 22%. Shares dropped during today's conference call, due to commentary on "customer budget constraints". Still, US and Canada infrastructure spending to come.

Important business now, and will be going forward. Attractive multiple, very high returns, balance sheet quite strong. Likes it.

misc industrial products
BUY ON WEAKNESS
Stella-Jones Inc.

Very simple business, has done well, the only game in town. Stock's done so well, it's too expensive. He'd need to wait for a pullback. 

misc industrial products
BUY ON WEAKNESS
Stella-Jones Inc.

US infrastructure demand is lifting shares. Well-run and returns are higher than the market. Trades at a good PE. Buy on dips or even now and hold long term.

misc industrial products
Showing 1 to 15 of 164 entries

Stella-Jones Inc.(SJ-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 7

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 11

Stockchase rating for Stella-Jones Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Stella-Jones Inc.(SJ-T) Frequently Asked Questions

What is Stella-Jones Inc. stock symbol?

Stella-Jones Inc. is a Canadian stock, trading under the symbol SJ-T on the Toronto Stock Exchange (SJ-CT). It is usually referred to as TSX:SJ or SJ-T

Is Stella-Jones Inc. a buy or a sell?

In the last year, 11 stock analysts published opinions about SJ-T. 7 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Stella-Jones Inc..

Is Stella-Jones Inc. a good investment or a top pick?

Stella-Jones Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Stella-Jones Inc..

Why is Stella-Jones Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Stella-Jones Inc. worth watching?

11 stock analysts on Stockchase covered Stella-Jones Inc. In the last year. It is a trending stock that is worth watching.

What is Stella-Jones Inc. stock price?

On 2025-01-24, Stella-Jones Inc. (SJ-T) stock closed at a price of $73.51.