Stella-Jones Inc. 2

Sound bite for Twitter and StockTwits is: Relatively expensive. The stock market has a tendency to under and over price stock. In this case, the stock price has gotten too high currently. See my spreadsheet on Stella-Jones Inc.

I do not own this stock of Stella-Jones Inc. (TSX-SJ, OTC- STLJF). I started a spreadsheet on this stock in mid-2009 because of a favorable report I read on this stock. It was considered to be a dividend growth stock and I am always on the lookout for dividend growth stocks.

There is not a great deal of insider ownership. One Director owns shares worth around $4.1M and the Chairman owns shares worth around $1.6M. This ownership added together is a lot less and 1% of the outstanding shares. Stock options for 2014 increased the outstanding shares by 0.32%. This is a moderate amount.

In insider trading, there was both insider buying and insider selling. Net insider selling was at $4.6M and this is 0.13% of market cap. This is a little high. The median NIS for the stocks that I cover is 0.02% and 70% of the stock I cover have NIS at 0.10% or less.

The 5 year low, median and high median Price/Earnings per Share Ratios are 11.00, 17.78 and 13.42. The 10 year corresponding ratios are 9.14, 12.43 and 16.03. The historical median P/E Ratio at 10.57 is lower than either the 5 or 10 year median P/E Ratio. The current P/E Ratio is 26.01 based on a stock price of $52.28 and 2015 EPS estimate of $2.01. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $23.77. The 10 year low, median and high median Price/Graham Price Ratios are 0.79, 1.03 and 1.40. The current P/GP Ratio is 2.20 based on a stock price of $52.28. This stock price testing suggests that the stock price is relatively expensive.

The P/E Ratio for 2016 at 21.34 is still rather high compared to even the 5 year median values. The P/E Ratio for 2016 is based on a stock price of $52.28 and 2016 EPS of $2.45. The P/GP Ratio for 2016 is still rather high at 1.99. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 2.13. The current P/B Ratio is 4.19 based on BVPS of $12.49 and a stock price of $52.28. The current P/B Ratio is some 96% higher than the 10 years median P/B Ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 5 year median dividend yield of 1.02% and a historical median dividend yield 1.28%. The current dividend yield is 0.61% based on dividends of $0.32 and a stock price of $52.28. The 5 year median and historical median dividend yields are some 40% and 52% higher than the current dividend yield. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts' recommendations, I find Buy and Hold recommendations. There are more Buy recommendations than Hold recommendations and the consensus recommendation is a Buy. The 12 month stock price is $51.86. This implies a total capital loss of 0.19% with a capital loss of 0.80% and dividends at 0.61%. The 12 month stock price does not really coincide with the 12 month stock price.

Thomas Dobrow filed this report on Dakota Financial News about an insider sale, the declaration of a quarterly dividend and recently adjusted analysts' reports. See some recent analysts remarks at Stock Chase.

This is the second of two parts. The first part was posted on Thursday, December 17, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.

Stella-Jones Inc. is a leading North American producer and marketer of industrial pressure treated wood products, specializing in the production of railway ties and timbers as well as wood poles supplied to electrical utilities and telecommunications companies. The Company also provides treated consumer lumber products and customized services to lumber retailers and wholesalers for outdoor applications. Other products include marine and foundation pilings, construction timbers, highway guardrail posts and treated wood for bridges. It has sales in Canada and US. Its web site is here Stella-Jones Inc.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.