2024-02-01 00:24:55 ET
Summary
- Stella-Jones Inc. is a manufacturer of railway ties and utilities poles.
- Over the years, the company has put up very good growth in both sales and profitability, which has translated to a meteoric rise in the share price long-term.
- Despite margin expansion and great performance from all of its segments, I'm staying away for now, as the opportunity isn't as great as it once was.
Please note all $ figures in , not , unless otherwise stated.
Introduction
Stella-Jones Inc. ( SJ:CA ) (STLJF) is a manufacturer of railway ties and utilities poles. That may not sound like an exciting business, but over the years it's produced fabulous returns for shareholders of Stella-Jones. Both of these business segments supply pressure-treated wood products and they go through a replacement cycle that ensures fairly steady and re-occurring revenues over the long-run. Despite being listed in Canada on the Toronto Stock Exchange, the company derives most (69%) of its revenues from the United States with the remaining 31% coming from Canada. Today, Stella-Jones is a market leader in pressure-treated wood products with 43 wood treating facilities and 16 pole peeling facilities that help to generate over $3.3 billion of annual revenue....
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For further details see:
Stella-Jones: Shares Keep Chugging Along