STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STN - CA85472N1096 - Common Stock
129.52 CAD
-0.94 (-0.72%)
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. While STN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. STN is growing strongly while it is still valued neutral. This is a good combination! These ratings would make STN suitable 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.
In the past 5 years STN has always been profitable.
In the past 5 years STN always reported a positive cash flow from operatings.
1.2 Ratios
STN has a Return On Assets of 5.95%. This is comparable to the rest of the industry: STN outperforms 57.14% of its industry peers.
STN has a Return On Equity (14.97%) which is in line with its industry peers.
With a Return On Invested Capital value of 9.44%, STN perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
STN had an Average Return On Invested Capital over the past 3 years of 8.26%. This is significantly below the industry average of 71.07%.
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
STN has a Profit Margin of 7.63%. This is in the better half of the industry: STN outperforms 71.43% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
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.
STN has a better Gross Margin (54.46%) than 85.71% of its industry peers.
In the last couple of years the Gross Margin of STN has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STN is destroying value.
Compared to 1 year ago, STN has about the same amount of shares outstanding.
STN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
STN has an Altman-Z score of 3.26. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN has a Altman-Z score (3.26) which is comparable to the rest of the industry.
The Debt to FCF ratio of STN is 3.36, which is a good value as it means it would take STN, 3.36 years of fcf income to pay off all of its debts.
STN's Debt to FCF ratio of 3.36 is amongst the best of the industry. STN outperforms 85.71% of its industry peers.
STN has a Debt/Equity ratio of 0.72. This is a neutral value indicating STN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, STN is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.99
WACC9.55%
2.3 Liquidity
A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
STN has a better Current ratio (1.27) than 71.43% of its industry peers.
A Quick Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.27, STN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| 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.
The Revenue has grown by 12.49% in the past year. This is quite good.
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 15.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.23% on average over the next years. This is quite good.
EPS Next Y20.18%
EPS Next 2Y17.33%
EPS Next 3Y15.22%
EPS Next 5YN/A
Revenue Next Year12%
Revenue Next 2Y11%
Revenue Next 3Y9.23%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
STN is valuated quite expensively with a Price/Earnings ratio of 25.10.
STN's Price/Earnings ratio is rather cheap when compared to the industry. STN is cheaper than 85.71% of the companies in the same industry.
STN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
STN is valuated rather expensively with a Price/Forward Earnings ratio of 21.24.
STN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of STN to the average of the S&P500 Index (23.13), we can say STN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 21.24 |
4.2 Price Multiples
STN's Enterprise Value to EBITDA ratio is in line with the industry average.
85.71% of the companies in the same industry are more expensive than STN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.36 | ||
| EV/EBITDA | 16.55 |
4.3 Compensation for Growth
STN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
STN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STN's earnings are expected to grow with 15.22% in the coming years.
PEG (NY)1.24
PEG (5Y)1.47
EPS Next 2Y17.33%
EPS Next 3Y15.22%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.69%, which is pretty low.
Compared to an average industry Dividend Yield of 1.09, STN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of STN is nicely growing with an annual growth rate of 7.51%!
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.
The dividend of STN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.52%
EPS Next 2Y17.33%
EPS Next 3Y15.22%
TSX:STN (12/31/2025, 7:00:00 PM)
129.52
-0.94 (-0.72%)
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 Cap14.77B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target172.2 (32.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend0.82
Dividend Growth(5Y)7.51%
DP20.52%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)1.03%
PT rev (3m)3.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 21.24 | ||
| P/S | 2.33 | ||
| P/FCF | 18.36 | ||
| P/OCF | 17.23 | ||
| P/B | 4.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.55 |
EPS(TTM)5.16
EY3.98%
EPS(NY)6.1
Fwd EY4.71%
FCF(TTM)7.06
FCFY5.45%
OCF(TTM)7.52
OCFY5.8%
SpS55.52
BVpS28.31
TBVpS-5.45
PEG (NY)1.24
PEG (5Y)1.47
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 | 3.26 |
F-Score6
WACC9.55%
ROIC/WACC0.99
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 Y20.18%
EPS Next 2Y17.33%
EPS Next 3Y15.22%
EPS Next 5YN/A
Revenue 1Y (TTM)12.49%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%11.84%
Revenue Next Year12%
Revenue Next 2Y11%
Revenue Next 3Y9.23%
Revenue Next 5YN/A
EBIT growth 1Y34.51%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year67.78%
EBIT Next 3Y26.13%
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.
Can you provide the valuation status for STANTEC INC?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the PE and PB ratios for STN stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN.CA) is 25.1 and the Price/Book (PB) ratio is 4.57.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN.CA) is 6 / 10.