The numbers tell that Stella-Jones Inc's growth is outstanding
24.03.2017 • About Stella-Jones Inc (
$SJ) • By InTwits
Stella-Jones Inc is a growth stock in Industrial industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Stella-Jones Inc showed fast growth in the last financial year. Stella-Jones Inc's revenue surged on 17.9% in FY2016. The growth also happened in EBITDA of 8.81% for the same period.
If we look for the longer period the company showed fast revenue growth of 22.0% from 2013 to 2016 annually. EBITDA surged on 19.5% from 2013 to 2016 annually.
Stella-Jones Inc ($SJ) financials for the last 5 years
mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 |
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Revenue | 717 | 1,011 | 1,249 | 1,559 | 1,838 |
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Revenue growth, % | | 40.9% | 23.6% | 24.8% | 17.9% |
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Gross margin, % | 21.2% | 19.5% | 17.9% | 19.7% | 18.2% |
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SG&A, % | 5.93% | 5.65% | 5.53% | 5.49% | 5.17% |
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EBITDA | 120 | 155 | 176 | 243 | 265 |
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EBITDA growth, % | | 28.9% | 13.7% | 38.1% | 8.8% |
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EBITDA margin, % | 16.8% | 15.3% | 14.1% | 15.6% | 14.4% |
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Net Income | 73 | 93 | 104 | 141 | 154 |
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Net Income margin, % | 10.2% | 9.15% | 8.31% | 9.07% | 8.37% |
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CAPEX | 15 | 26 | 24 | 37 | 63 |
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CAPEX/Revenue, % | 2.06% | 2.59% | 1.94% | 2.40% | 3.44% |
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Debt | 364 | 373 | 445 | 670 | 694 |
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Cash | 14 | 3 | 0 | 3 | 2 |
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Net Debt/EBITDA | 2.9x | 2.4x | 2.5x | 2.7x | 2.6x |
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|
ROIC, % | 15.3% | 14.9% | 14.3% | 15.4% | 13.4% |
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ROE, % | 18.3% | 17.8% | 16.4% | 17.6% | 15.9% |
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Profitability and return on investment
EBITDA margin declined slightly from 15.6% in FY2015 to 14.4% in FY2016. If we look for the longer period the company showed decline of 0.900 pp from 15.3% in 2013 to 14.4% in 2016.
We call Stella-Jones Inc an attractive growth stock as together with the growth it delivers high ROIC at 13.4%. During the last three years it dropped - it was 14.9% in FY2013. Average ROIC for the last three years was 14.4%.
Stella-Jones Inc showed decline of 0.700 pp from 9.10% to 8.40% in 2016. If we look for the longer period the company's Net Income margin decreased on 0.800 pp from 9.20% in 2013 to 8.40% in 2016.
Stella-Jones Inc operates at ROE of 15.9%. For the last three years the average ROE was 16.6%.
Capital expenditures (CAPEX)
In FY2016 Stella-Jones Inc had CAPEX/Revenue of 3.44%. The company showed fast CAPEX/Revenue growth of 0.852 pp from 2.59% in 2013 to 3.44% in 2016. It's average CAPEX/Revenue for the last three years was 2.59%.
Leverage (Debt)
Stella-Jones Inc has medium debt level at 2.6x Net Debt/EBITDA to maintain high growth. In the last 3 years the company showed leverage growth of 0.23x from 2.38x in 2013 to 2.61x in 2016.
Valuation vs. comparable companies
The market closed today at 12.8x EV/EBITDA for Stella-Jones Inc which is 42.2% lower than 22.1x Industrial peer group avearge calculated on the basis of 168 companies. At the end of trading day today Stella-Jones Inc traded at 17.4x P/E which is 61.2% lower than 45.0x Industrial peer group avearge calculated on the basis of 39 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The company trades at 16.7x EV/(EBITDA-CAPEX) which is not surprisingly 682% higher than 2.1x Industrial industry avearge calculated based on 28 companies.
Management team
Stella-Jones Inc is headed by Brian Mcmanus as a CEO and by Eric Vachon as a CFO.
Peers in Industrial
Below we provide Stella-Jones Inc benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
---|
Top 5 |
---|
Diversified Royalty Corp ($DIV) | | | | 503.3% | |
Electrovaya Inc ($EFL) | | -71.2% | 160.5% | 123.8% | 17.9% |
WSP Global Inc ($WSP) | | 60.3% | 44.0% | 108.9% | 5.2% |
CEMATRIX Corp ($CVX) | | -5.6% | 7.9% | 76.5% | -37.6% |
Lumenpulse Inc ($LMP) | | 33.9% | 47.0% | 61.8% | 44.1% |
|
---|
Median (93 companies) | 13.8% | 4.9% | 9.1% | 10.3% | 4.8% |
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Stella-Jones Inc ($SJ) | | 40.9% | 23.6% | 24.8% | 17.9% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
---|
Top 5 |
---|
Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | 76.7% |
FLYHT Aerospace Solutions Ltd ($FLY) | 57.2% | 59.2% | 62.9% | 69.3% | |
Alarmforce Industries Inc ($AF) | 75.0% | 76.5% | 72.2% | 69.2% | 67.4% |
Epicore BioNetworks Inc ($EBN) | 60.8% | 63.2% | 64.1% | 58.1% | 58.1% |
|
---|
Median (87 companies) | 23.4% | 23.4% | 23.1% | 23.8% | 24.0% |
---|
Stella-Jones Inc ($SJ) | 21.2% | 19.5% | 17.9% | 19.7% | 18.2% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
---|
Top 5 |
---|
Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | 54.3% |
Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | 51.6% |
Vitreous Glass Inc ($VCI) | 31.4% | 32.2% | 37.8% | 39.0% | 39.8% |
Photon Control Inc ($PHO) | 17.6% | 24.8% | 29.3% | 38.3% | |
Evertz Technologies Ltd ($ET) | 29.6% | 29.1% | 23.0% | 27.0% | 27.4% |
|
---|
Median (88 companies) | 9.2% | 8.3% | 7.2% | 7.7% | 9.2% |
---|
Stella-Jones Inc ($SJ) | 16.8% | 15.3% | 14.1% | 15.6% | 14.4% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
---|
Top 5 |
---|
Newalta Corp ($NAL) | 21.7% | 34.5% | 35.1% | 42.0% | 9.6% |
Cargojet Inc ($CJT.A) | 7.0% | 6.3% | 54.1% | 41.3% | |
Algoma Central Corp ($ALC) | 15.9% | 7.3% | 5.0% | 27.4% | 58.2% |
Canadian Pacific Railway Ltd ($CP) | 20.2% | 20.2% | 21.9% | 22.7% | 19.0% |
Canadian National Railway Co ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
|
---|
Median (92 companies) | 3.1% | 3.7% | 3.2% | 3.4% | 3.8% |
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Stella-Jones Inc ($SJ) | 2.1% | 2.6% | 1.9% | 2.4% | 3.4% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
---|
Top 5 |
---|
Biorem Inc ($BRM) | -15.1% | 32.3% | -29.7% | 54.4% | |
Vitreous Glass Inc ($VCI) | 30.5% | 32.3% | 48.3% | 51.0% | 52.9% |
Photon Control Inc ($PHO) | 21.0% | 44.4% | 38.0% | 40.6% | |
Pacific Safety Products Inc ($PSP) | -1.5% | -11.5% | 3.7% | 38.2% | 12.3% |
CEMATRIX Corp ($CVX) | 6.4% | -2.4% | -6.7% | 30.4% | -15.5% |
|
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Median (93 companies) | 9.3% | 8.5% | 8.5% | 8.3% | 8.0% |
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Stella-Jones Inc ($SJ) | 15.3% | 14.9% | 14.3% | 15.4% | 13.4% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
---|
Top 5 |
---|
Conifex Timber Inc ($CFF) | | 2.7x | 6.1x | 35.9x | 3.6x |
Ag Growth International Inc ($AFN) | 2.9x | -0.1x | 2.1x | 14.1x | |
Cargojet Inc ($CJT.A) | 1.5x | 1.5x | 31.5x | 12.9x | |
Progressive Waste Solutions Ltd ($BIN) | 4.5x | 3.3x | 2.9x | 10.6x | 3.8x |
Finning International Inc ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
|
---|
Median (75 companies) | 1.5x | 1.4x | 1.2x | 1.0x | 1.6x |
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Stella-Jones Inc ($SJ) | 2.9x | 2.4x | 2.5x | 2.7x | 2.6x |