Reasonable Growth, Debt Levels, and a High ROIC Make STANTEC INC (NYSE:STN) Appealing to Quality Investors.

In this article we will dive into STANTEC INC (NYSE:STN) as a possible candidate for quality investing. Investors should always do their own research, but we noticed STANTEC INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

• STANTEC INC has demonstrated significant revenue growth over the past 5 years, with a 8.59% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• STANTEC INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 26.51% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of STANTEC INC stands at 3.9, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• STANTEC INC exhibits impressive Profit Quality (5-year) with a 189.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• STANTEC INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 13.85%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• STANTEC INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for NYSE:STN?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to STN. STN was compared to 41 industry peers in the Construction & Engineering industry. STN scores excellent on profitability, but there are some minor concerns on its financial health. STN is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of STN for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.