STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STN - CA85472N1096 - Common Stock
135.15 CAD
-0.07 (-0.05%)
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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make STN a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year STN was profitable.
In the past year STN had a positive cash flow from operations.
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
With a Return On Assets value of 5.95%, STN perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
STN has a Return On Equity (14.97%) which is in line with its industry peers.
STN has a Return On Invested Capital (9.44%) which is in line with 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 last Return On Invested Capital (9.44%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
| 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 71.43% of the companies in the same industry.
STN's Profit Margin has improved in the last couple of years.
STN has a better Operating Margin (11.23%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of STN has grown nicely.
With an excellent Gross Margin value of 54.46%, STN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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 below the Cost of Capital (WACC), which means it is destroying value.
STN has about the same amout of shares outstanding than it did 1 year ago.
STN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, STN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.34 indicates that STN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.34, STN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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.
STN has a Debt to FCF ratio of 3.36. This is amongst the best in the industry. STN outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that STN is somewhat dependend on debt financing.
STN has a worse Debt to Equity ratio (0.72) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.99
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, STN is in the better half of the industry, outperforming 71.43% 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.
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
STN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.64%, which is quite impressive.
Measured over the past years, STN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.12% on average per year.
STN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.49%.
Measured over the past years, STN shows a quite strong growth in Revenue. The Revenue has been growing by 9.59% on average per year.
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.
STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.65% yearly.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.19, STN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 71.43% of the companies listed in the same industry.
STN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 21.81, which indicates a rather expensive current valuation of STN.
STN's Price/Forward Earnings ratio is in line with the industry average.
STN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.19 | ||
| Fwd PE | 21.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued a bit more expensive than 71.43% of the companies in the same industry.
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 | 19.15 | ||
| EV/EBITDA | 17.17 |
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.
STN's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)1.53
EPS Next 2Y18.28%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, STN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.44, STN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, STN's dividend is way lower than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
20.52% of the earnings are spent on dividend by STN. This is a low number and 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 (11/26/2025, 7:00:00 PM)
135.15
-0.07 (-0.05%)
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 Cap15.42B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target170.43 (26.1%)
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 | 26.19 | ||
| Fwd PE | 21.81 | ||
| P/S | 2.43 | ||
| P/FCF | 19.15 | ||
| P/OCF | 17.98 | ||
| P/B | 4.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.17 |
EPS(TTM)5.16
EY3.82%
EPS(NY)6.2
Fwd EY4.59%
FCF(TTM)7.06
FCFY5.22%
OCF(TTM)7.52
OCFY5.56%
SpS55.52
BVpS28.31
TBVpS-5.45
PEG (NY)1.22
PEG (5Y)1.53
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 | 3.34 |
F-Score6
WACC9.52%
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 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 26.19 and the Price/Book (PB) ratio is 4.77.
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%.