Scotiabank Brokers Lower Earnings Estimates for Stella-Jones

Key Points

• Scotiabank cut its FY2026 EPS estimate for Stella-Jones to C$5.15 from C$5.69, while maintaining a “Sector Outperform” rating and C$85 price target. The revised estimate remains below the broader consensus of C$6.45.
• Stella-Jones reported quarterly EPS of C$1.59 on revenue of C$1.04 billion, with a 12.35% return on equity and 7.36% net margin.
• Analysts have generally lowered their price targets, but the stock retains a “Moderate Buy” consensus from five Buy and three Hold ratings, with an average target of C$90 versus a recent price of C$71.38.

Stella-Jones Inc. (TSE:SJ - Free Report) - Research analysts at Scotiabank decreased their FY2026 earnings per share (EPS) estimates for Stella-Jones in a report issued on Wednesday, August 19th. Scotiabank analyst J. Goldman now forecasts that the company will post earnings of $5.15 per share for the year, down from their prior estimate of $5.69. Scotiabank has a "Sector Outperform" rating and a $85.00 price objective on the stock. The consensus estimate for Stella-Jones' current full-year earnings is $6.45 per share.

Stella-Jones (TSE:SJ - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported C$1.59 EPS for the quarter. The business had revenue of C$1.04 billion for the quarter. Stella-Jones had a return on equity of 12.35% and a net margin of 7.36%.

Several other analysts have also commented on SJ. National Bank Financial dropped their price target on shares of Stella-Jones from C$95.00 to C$92.00 and set a "sector perform" rating on the stock in a research report on Friday, August 7th. TD decreased their price objective on shares of Stella-Jones from C$106.00 to C$93.00 and set a "buy" rating for the company in a research report on Monday, May 11th. Royal Bank Of Canada lowered their target price on shares of Stella-Jones from C$82.00 to C$79.00 and set a "sector perform" rating on the stock in a research note on Friday, August 7th. Raymond James Financial dropped their target price on Stella-Jones from C$90.00 to C$83.00 and set an "outperform" rating on the stock in a research report on Friday, August 7th. Finally, Desjardins cut their price target on Stella-Jones from C$104.00 to C$99.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of C$90.00.

Stella-Jones Stock Performance

SJ opened at C$71.38 on Monday. The company has a debt-to-equity ratio of 75.40, a current ratio of 5.25 and a quick ratio of 1.20. The firm has a fifty day moving average price of C$78.26 and a 200 day moving average price of C$84.19. Stella-Jones has a 1 year low of C$69.94 and a 1 year high of C$101.31. The stock has a market cap of C$3.90 billion, a P/E ratio of 15.12, a P/E/G ratio of 2.40 and a beta of -0.07.

Stella-Jones Company Profile

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.

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