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STLJF (Stella-Jones) Financial Strength : 6 (As of Sep. 2024)


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What is Stella-Jones Financial Strength?

Stella-Jones has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Stella-Jones's Interest Coverage for the quarter that ended in Sep. 2024 was 5.65. Stella-Jones's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.44. As of today, Stella-Jones's Altman Z-Score is 3.57.


Competitive Comparison of Stella-Jones's Financial Strength

For the Lumber & Wood Production subindustry, Stella-Jones's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the Forest Products Industry

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

* The bar in red indicates where Stella-Jones's Financial Strength falls into.



Stella-Jones Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Stella-Jones's Interest Expense for the months ended in Sep. 2024 was $-17 Mil. Its Operating Income for the months ended in Sep. 2024 was $96 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $1,137 Mil.

Stella-Jones's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*95.969/-16.979
=5.65

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Stella-Jones's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(45.032 + 1136.867) / 2701.904
=0.44

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Stella-Jones has a Z-score of 3.57, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.57 is strong.

* 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.


Stella-Jones  (OTCPK:STLJF) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Stella-Jones has the Financial Strength Rank of 6.


Stella-Jones Financial Strength Related Terms

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


Stella-Jones Business Description

Traded in Other Exchanges
Address
3100 de la Cote-Vertu Boulevard, Suite 300, Saint-Laurent, QC, CAN, H4R 2J8
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.

Stella-Jones Headlines

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