Stella-Jones (TSX:SJ) Debt-to-EBITDA : 3.35 (As of Dec. 2023)

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What is Stella-Jones Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Stella-Jones's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$154 Mil. Stella-Jones's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$1,456 Mil. Stella-Jones's annualized EBITDA for the quarter that ended in Dec. 2023 was C$480 Mil. Stella-Jones's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.35.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Stella-Jones's Debt-to-EBITDA or its related term are showing as below:

TSX:SJ' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.87 Med: 2.39 Max: 2.75
Current: 2.65

During the past 13 years, the highest Debt-to-EBITDA Ratio of Stella-Jones was 2.75. The lowest was 1.87. And the median was 2.39.

TSX:SJ's Debt-to-EBITDA is ranked better than
54.09% of 220 companies
in the Forest Products industry
Industry Median: 3.15 vs TSX:SJ: 2.65

Stella-Jones Debt-to-EBITDA Historical Data

The historical data trend for Stella-Jones's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Stella-Jones Debt-to-EBITDA Chart

Stella-Jones Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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2.31

1.94

2.20

2.47

2.65

Stella-Jones Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															3.18	2.78	1.88	1.80	3.35

Competitive Comparison of Stella-Jones's Debt-to-EBITDA

For the Lumber & Wood Production subindustry, Stella-Jones's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Stella-Jones's Debt-to-EBITDA Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Stella-Jones's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Stella-Jones's Debt-to-EBITDA falls into.

Stella-Jones Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Stella-Jones's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(154	+	1456)	/	608
	=	2.65

Stella-Jones's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(154	+	1456)	/	480
	=	3.35

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

Stella-Jones (TSX:SJ) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Stella-Jones Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Stella-Jones's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Stella-Jones (TSX:SJ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Stella-Jones Inc (TSX:SJ) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

STLJF:USA 97S:Germany

Address

3100 de la Cote-Vertu Boulevard, Suite 300, Saint-Laurent, QC, CAN, H4R 2J8

Website

https://www.stella-jones.com

Stella-Jones Inc produces and sells lumber and wood products. The company operates in two segments: Pressure-treated wood, which includes utility poles, railway ties, residential lumber, and industrial products; and Logs & Lumber segment comprises of the sales of logs harvested in the course of the company's procurement process that is determined to be unsuitable for use as utility poles, it also includes the sale of excess lumber to local home-building markets. The vast majority of its revenue comes from the Pressure-treated wood segment. Its geographical segments are the United States and Canada, of which the majority of its revenue is derived from the United States.