Scotiabank Has Weak Outlook for Stella-Jones FY2026 Earnings

Key Points

• Scotiabank lowered its FY2026 EPS estimate for Stella-Jones to $5.97 (from $6.09) while keeping a "Sector Outperform" rating and a C$97.00 target, and projects FY2027 EPS of $6.65.
• Several other brokers have trimmed targets or ratings (RBC, CIBC, National Bank) though TD raised its target to C$107 and the consensus remains a "Moderate Buy" with an average target of C$98.57.
• Stella-Jones opened at C$81.99, below its 50- and 200-day moving averages, with a market cap of C$4.48B and a P/E of 13.46; the company reported C$0.91 EPS on C$727M revenue in the most recent quarter.

Stella-Jones Inc. (TSE:SJ - Free Report) - Stock analysts at Scotiabank lowered their FY2026 earnings estimates for shares of Stella-Jones in a report issued on Friday, May 1st. Scotiabank analyst J. Goldman now anticipates that the company will post earnings of $5.97 per share for the year, down from their previous forecast of $6.09. Scotiabank currently has a "Sector Outperform" rating and a $97.00 target price on the stock. The consensus estimate for Stella-Jones' current full-year earnings is $6.45 per share. Scotiabank also issued estimates for Stella-Jones' FY2027 earnings at $6.65 EPS.

A number of other analysts have also commented on SJ. Royal Bank Of Canada decreased their price target on shares of Stella-Jones from C$95.00 to C$93.00 and set a "sector perform" rating for the company in a research note on Monday, April 13th. Canadian Imperial Bank of Commerce decreased their price target on shares of Stella-Jones from C$102.00 to C$96.00 in a research note on Wednesday, April 22nd. National Bank Financial lowered shares of Stella-Jones from an "outperform" rating to a "hold" rating and decreased their price target for the company from C$107.00 to C$95.00 in a research note on Wednesday, April 8th. Finally, TD Securities boosted their price target on shares of Stella-Jones from C$97.00 to C$107.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of C$98.57.

Stella-Jones Stock Performance

TSE:SJ opened at C$81.99 on Monday. The company has a fifty day moving average of C$90.89 and a 200-day moving average of C$88.30. The firm has a market capitalization of C$4.48 billion, a P/E ratio of 13.46, a P/E/G ratio of 2.40 and a beta of -0.11. The company has a quick ratio of 1.20, a current ratio of 7.40 and a debt-to-equity ratio of 92.30. Stella-Jones has a twelve month low of C$66.53 and a twelve month high of C$101.31.

Stella-Jones (TSE:SJ - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported C$0.91 earnings per share for the quarter. The company had revenue of C$727.00 million during the quarter. Stella-Jones had a net margin of 9.65% and a return on equity of 16.67%.

About Stella-Jones

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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