STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STN - CA85472N1096 - Common Stock
132.65 CAD
-0.13 (-0.1%)
Taking everything into account, STN scores 6 out of 10 in our fundamental rating. STN was compared to 7 industry peers in the Construction & Engineering industry. STN has an excellent profitability rating, but there are some minor concerns on its financial health. STN is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, STN could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
STN had positive earnings in the past year.
STN had a positive operating cash flow in the past year.
Each year in the past 5 years STN has been profitable.
In the past 5 years STN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.95%, STN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
STN has a Return On Equity (14.97%) which is comparable to the rest of the industry.
STN's Return On Invested Capital of 9.44% is fine compared to the rest of the industry. STN outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STN is significantly below the industry average of 33.49%.
The 3 year average ROIC (8.26%) for STN is below the current ROIC(9.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 14.97% | ||
| ROIC | 9.44% |
ROA(3y)5.02%
ROA(5y)4.56%
ROE(3y)12%
ROE(5y)10.98%
ROIC(3y)8.26%
ROIC(5y)7.69%
1.3 Margins
Looking at the Profit Margin, with a value of 7.63%, STN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of STN has grown nicely.
Looking at the Operating Margin, with a value of 11.23%, STN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of STN has grown nicely.
The Gross Margin of STN (54.46%) is better than 87.50% of its industry peers.
STN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.23% | ||
| PM (TTM) | 7.63% | ||
| GM | 54.46% |
OM growth 3Y4.91%
OM growth 5Y1.76%
PM growth 3Y3.74%
PM growth 5Y3.3%
GM growth 3Y0.35%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
STN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for STN remains at a similar level compared to 1 year ago.
STN has more shares outstanding than it did 5 years ago.
STN has a better debt/assets ratio than last year.
2.2 Solvency
STN has an Altman-Z score of 3.31. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN has a Altman-Z score of 3.31. This is amongst the best in the industry. STN outperforms 87.50% of its industry peers.
STN has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as STN would need 3.36 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.36, STN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that STN is somewhat dependend on debt financing.
The Debt to Equity ratio of STN (0.72) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.31 |
ROIC/WACC1.02
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.27, STN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
STN has a Quick ratio of 1.27. This is amongst the best in the industry. STN outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.64% over the past year.
STN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.12% yearly.
Looking at the last year, STN shows a quite strong growth in Revenue. The Revenue has grown by 12.49% in the last year.
The Revenue has been growing by 9.59% on average over the past years. This is quite good.
EPS 1Y (TTM)24.64%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%17.69%
Revenue 1Y (TTM)12.49%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%11.84%
3.2 Future
The Earnings Per Share is expected to grow by 16.04% on average over the next years. This is quite good.
Based on estimates for the next years, STN will show a quite strong growth in Revenue. The Revenue will grow by 12.65% on average per year.
EPS Next Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
Revenue Next 5YN/A
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
STN is valuated quite expensively with a Price/Earnings ratio of 25.71.
Based on the Price/Earnings ratio, STN is valued a bit cheaper than 62.50% of the companies in the same industry.
STN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.47.
STN is valuated rather expensively with a Price/Forward Earnings ratio of 21.40.
Based on the Price/Forward Earnings ratio, STN is valued a bit more expensive than 62.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STN to the average of the S&P500 Index (34.42), we can say STN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued a bit more expensive than 75.00% of the companies in the same industry.
STN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STN is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.8 | ||
| EV/EBITDA | 16.89 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of STN may justify a higher PE ratio.
A more expensive valuation may be justified as STN's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)1.19
PEG (5Y)1.5
EPS Next 2Y18.28%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.68%, which is pretty low.
STN's Dividend Yield is a higher than the industry average which is at 1.44.
With a Dividend Yield of 0.68, STN pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
On average, the dividend of STN grows each year by 7.51%, which is quite nice.
STN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
STN pays out 20.52% of its income as dividend. This is a sustainable payout ratio.
STN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.52%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
TSX:STN (11/21/2025, 7:00:00 PM)
132.65
-0.13 (-0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap15.13B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target170.43 (28.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.82
Dividend Growth(5Y)7.51%
DP20.52%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.06%
Min EPS beat(2)-1.14%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)3.07%
Min EPS beat(4)-1.14%
Max EPS beat(4)10.41%
EPS beat(8)4
Avg EPS beat(8)1.56%
EPS beat(12)8
Avg EPS beat(12)3.94%
EPS beat(16)10
Avg EPS beat(16)3.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.53%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-1.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)2.67%
Revenue beat(8)2
Avg Revenue beat(8)-0.57%
Revenue beat(12)6
Avg Revenue beat(12)0.58%
Revenue beat(16)9
Avg Revenue beat(16)0.54%
PT rev (1m)2.91%
PT rev (3m)5.69%
EPS NQ rev (1m)-5.24%
EPS NQ rev (3m)5.24%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)7.52%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.4 | ||
| P/S | 2.39 | ||
| P/FCF | 18.8 | ||
| P/OCF | 17.65 | ||
| P/B | 4.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.89 |
EPS(TTM)5.16
EY3.89%
EPS(NY)6.2
Fwd EY4.67%
FCF(TTM)7.06
FCFY5.32%
OCF(TTM)7.52
OCFY5.67%
SpS55.52
BVpS28.31
TBVpS-5.45
PEG (NY)1.19
PEG (5Y)1.5
Graham Number57.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 14.97% | ||
| ROCE | 12.22% | ||
| ROIC | 9.44% | ||
| ROICexc | 10.07% | ||
| ROICexgc | 33.73% | ||
| OM | 11.23% | ||
| PM (TTM) | 7.63% | ||
| GM | 54.46% | ||
| FCFM | 12.71% |
ROA(3y)5.02%
ROA(5y)4.56%
ROE(3y)12%
ROE(5y)10.98%
ROIC(3y)8.26%
ROIC(5y)7.69%
ROICexc(3y)8.76%
ROICexc(5y)8.2%
ROICexgc(3y)24.18%
ROICexgc(5y)22.38%
ROCE(3y)10.72%
ROCE(5y)9.96%
ROICexgc growth 3Y14.28%
ROICexgc growth 5Y9.44%
ROICexc growth 3Y14.7%
ROICexc growth 5Y3.94%
OM growth 3Y4.91%
OM growth 5Y1.76%
PM growth 3Y3.74%
PM growth 5Y3.3%
GM growth 3Y0.35%
GM growth 5Y0.13%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 16.32% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 8.95 | ||
| Cash Conversion | 82.99% | ||
| Profit Quality | 166.47% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.31 |
F-Score6
WACC9.22%
ROIC/WACC1.02
Cap/Depr(3y)30.24%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.46%
Profit Quality(3y)122.48%
Profit Quality(5y)175.41%
High Growth Momentum
Growth
EPS 1Y (TTM)24.64%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%17.69%
EPS Next Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue 1Y (TTM)12.49%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%11.84%
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
Revenue Next 5YN/A
EBIT growth 1Y34.51%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year66.9%
EBIT Next 3Y26.65%
EBIT Next 5YN/A
FCF growth 1Y109.94%
FCF growth 3Y12.8%
FCF growth 5Y4.96%
OCF growth 1Y74.73%
OCF growth 3Y14.96%
OCF growth 5Y5.91%
STANTEC INC / STN.CA FAQ
Can you provide the ChartMill fundamental rating for STANTEC INC?
ChartMill assigns a fundamental rating of 6 / 10 to STN.CA.
What is the valuation status for STN stock?
ChartMill assigns a valuation rating of 4 / 10 to STANTEC INC (STN.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for STANTEC INC?
STANTEC INC (STN.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of STANTEC INC (STN.CA) stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN.CA) is 25.71 and the Price/Book (PB) ratio is 4.68.
Is the dividend of STANTEC INC sustainable?
The dividend rating of STANTEC INC (STN.CA) is 5 / 10 and the dividend payout ratio is 20.52%.