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SNC-LAVALIN GROUP INC (SNC.CA) Stock Fundamental Analysis

TSX:SNC - Toronto Stock Exchange - CA78460T1057 - Common Stock - Currency: CAD

43.42  +0.55 (+1.28%)

Fundamental Rating

3

SNC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 7 industry peers in the Construction & Engineering industry. Both the profitability and financial health of SNC have multiple concerns. SNC is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year SNC was profitable.
SNC had a negative operating cash flow in the past year.
In multiple years SNC reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: SNC reported negative operating cash flow in multiple years.
SNC.CA Yearly Net Income VS EBIT VS OCF VS FCFSNC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 500M -500M -1B

1.2 Ratios

The Return On Assets of SNC (0.76%) is worse than 66.67% of its industry peers.
The Return On Equity of SNC (2.57%) is worse than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.90%, SNC is in line with its industry, outperforming 55.56% of the companies in the same industry.
Industry RankSector Rank
ROA 0.76%
ROE 2.57%
ROIC 3.9%
ROA(3y)-0.83%
ROA(5y)-1.97%
ROE(3y)-5%
ROE(5y)-8.45%
ROIC(3y)N/A
ROIC(5y)N/A
SNC.CA Yearly ROA, ROE, ROICSNC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 20 -20

1.3 Margins

The Profit Margin of SNC (0.95%) is worse than 66.67% of its industry peers.
In the last couple of years the Profit Margin of SNC has declined.
SNC has a Operating Margin of 3.79%. This is in the better half of the industry: SNC outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of SNC has declined.
SNC's Gross Margin of 6.55% is on the low side compared to the rest of the industry. SNC is outperformed by 77.78% of its industry peers.
SNC's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 3.79%
PM (TTM) 0.95%
GM 6.55%
OM growth 3Y37.65%
OM growth 5Y-15.93%
PM growth 3Y-66.54%
PM growth 5Y-49.9%
GM growth 3Y13.54%
GM growth 5Y-10.11%
SNC.CA Yearly Profit, Operating, Gross MarginsSNC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 -10

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1

2. Health

2.1 Basic Checks

SNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SNC has about the same amount of shares outstanding.
SNC has a worse debt/assets ratio than last year.
SNC.CA Yearly Shares OutstandingSNC.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M
SNC.CA Yearly Total Debt VS Total AssetsSNC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

SNC has an Altman-Z score of 1.67. This is a bad value and indicates that SNC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SNC (1.67) is worse than 66.67% of its industry peers.
SNC has a Debt/Equity ratio of 0.62. This is a neutral value indicating SNC is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.62, SNC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF N/A
Altman-Z 1.67
ROIC/WACC0.5
WACC7.77%
SNC.CA Yearly LT Debt VS Equity VS FCFSNC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 0.85 indicates that SNC may have some problems paying its short term obligations.
With a Current ratio value of 0.85, SNC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that SNC may have some problems paying its short term obligations.
SNC has a Quick ratio of 0.85. This is in the lower half of the industry: SNC underperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.85
SNC.CA Yearly Current Assets VS Current LiabilitesSNC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

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5

3. Growth

3.1 Past

SNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.70%, which is quite impressive.
Measured over the past years, SNC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.30% on average per year.
SNC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.73%.
Measured over the past years, SNC shows a decrease in Revenue. The Revenue has been decreasing by -4.16% on average per year.
EPS 1Y (TTM)37.7%
EPS 3Y-70.1%
EPS 5Y-21.3%
EPS Q2Q%32.26%
Revenue 1Y (TTM)5.73%
Revenue growth 3Y-7.43%
Revenue growth 5Y-4.16%
Sales Q2Q%13.9%

3.2 Future

SNC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.78% yearly.
SNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.14% yearly.
EPS Next Y132.51%
EPS Next 2Y74.39%
EPS Next 3Y58.64%
EPS Next 5Y45.78%
Revenue Next Year7.37%
Revenue Next 2Y4.45%
Revenue Next 3Y4.22%
Revenue Next 5Y3.14%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SNC.CA Yearly Revenue VS EstimatesSNC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B 10B
SNC.CA Yearly EPS VS EstimatesSNC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4

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3

4. Valuation

4.1 Price/Earnings Ratio

SNC is valuated quite expensively with a Price/Earnings ratio of 51.69.
Based on the Price/Earnings ratio, SNC is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.87. SNC is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 22.31 indicates a rather expensive valuation of SNC.
The rest of the industry has a similar Price/Forward Earnings ratio as SNC.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, SNC is valued at the same level.
Industry RankSector Rank
PE 51.69
Fwd PE 22.31
SNC.CA Price Earnings VS Forward Price EarningsSNC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNC is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.33
SNC.CA Per share dataSNC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

SNC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SNC's earnings are expected to grow with 58.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y74.39%
EPS Next 3Y58.64%

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2

5. Dividend

5.1 Amount

With a yearly dividend of 0.18%, SNC is not a good candidate for dividend investing.
SNC's Dividend Yield is slightly below the industry average, which is at 2.05.
Compared to an average S&P500 Dividend Yield of 2.46, SNC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.18%

5.2 History

The dividend of SNC decreases each year by -40.74%.
SNC has been paying a dividend for over 5 years, so it has already some track record.
The dividend of SNC decreased in the last 3 years.
Dividend Growth(5Y)-40.74%
Div Incr Years0
Div Non Decr Years2
SNC.CA Yearly Dividends per shareSNC.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

18.56% of the earnings are spent on dividend by SNC. This is a low number and sustainable payout ratio.
DP18.56%
EPS Next 2Y74.39%
EPS Next 3Y58.64%
SNC.CA Yearly Income VS Free CF VS DividendSNC.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 500M -500M -1B
SNC.CA Dividend Payout.SNC.CA Dividend Payout, showing the Payout Ratio.SNC.CA Dividend Payout.PayoutRetained Earnings

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SNC-LAVALIN GROUP INC

TSX:SNC (10/6/2023, 7:00:00 PM)

43.42

+0.55 (+1.28%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners29.67%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.62B
Analysts77.33
Price Target48.13 (10.85%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.18%
Yearly Dividend0.08
Dividend Growth(5Y)-40.74%
DP18.56%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.77%
Min EPS beat(2)17.35%
Max EPS beat(2)34.2%
EPS beat(4)2
Avg EPS beat(4)-36.36%
Min EPS beat(4)-186%
Max EPS beat(4)34.2%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)9.36%
Min Revenue beat(2)6.53%
Max Revenue beat(2)12.19%
Revenue beat(4)3
Avg Revenue beat(4)4.98%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)12.19%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)15.08%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-2.41%
EPS NY rev (1m)0%
EPS NY rev (3m)5.37%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)7.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.5%
Valuation
Industry RankSector Rank
PE 51.69
Fwd PE 22.31
P/S 0.96
P/FCF N/A
P/OCF N/A
P/B 2.59
P/tB N/A
EV/EBITDA 17.33
EPS(TTM)0.84
EY1.93%
EPS(NY)1.95
Fwd EY4.48%
FCF(TTM)-1.78
FCFYN/A
OCF(TTM)-1.12
OCFYN/A
SpS45.25
BVpS16.8
TBVpS-4.32
PEG (NY)0.39
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.76%
ROE 2.57%
ROCE 5.42%
ROIC 3.9%
ROICexc 4.52%
ROICexgc 20.04%
OM 3.79%
PM (TTM) 0.95%
GM 6.55%
FCFM N/A
ROA(3y)-0.83%
ROA(5y)-1.97%
ROE(3y)-5%
ROE(5y)-8.45%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y45.32%
ROICexcg growth 5Y-20.73%
ROICexc growth 3Y35.29%
ROICexc growth 5Y-10.11%
OM growth 3Y37.65%
OM growth 5Y-15.93%
PM growth 3Y-66.54%
PM growth 5Y-49.9%
GM growth 3Y13.54%
GM growth 5Y-10.11%
F-Score4
Asset Turnover0.79
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF N/A
Debt/EBITDA 3.36
Cap/Depr 47.8%
Cap/Sales 1.47%
Interest Coverage 1.87
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.85
Quick Ratio 0.85
Altman-Z 1.67
F-Score4
WACC7.77%
ROIC/WACC0.5
Cap/Depr(3y)34.75%
Cap/Depr(5y)36.36%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.7%
EPS 3Y-70.1%
EPS 5Y-21.3%
EPS Q2Q%32.26%
EPS Next Y132.51%
EPS Next 2Y74.39%
EPS Next 3Y58.64%
EPS Next 5Y45.78%
Revenue 1Y (TTM)5.73%
Revenue growth 3Y-7.43%
Revenue growth 5Y-4.16%
Sales Q2Q%13.9%
Revenue Next Year7.37%
Revenue Next 2Y4.45%
Revenue Next 3Y4.22%
Revenue Next 5Y3.14%
EBIT growth 1Y64.99%
EBIT growth 3Y27.43%
EBIT growth 5Y-19.42%
EBIT Next Year95.2%
EBIT Next 3Y37.08%
EBIT Next 5Y24.55%
FCF growth 1Y-1717.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-476.46%
OCF growth 3YN/A
OCF growth 5YN/A