STANTEC INC (STN.CA) Stock Fundamental Analysis
TSX:STN - Toronto Stock Exchange - CA85472N1096 - Common Stock - Currency: CAD
Overall STN gets a fundamental rating of 7 out of 10. We evaluated STN against 8 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making STN a very profitable company, without any liquidiy or solvency issues. STN is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make STN a good candidate for growth and quality 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.
STN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STN's Return On Assets of 6.34% is amongst the best of the industry. STN outperforms 87.50% of its industry peers.
STN has a Return On Equity of 14.97%. This is in the better half of the industry: STN outperforms 75.00% of its industry peers.
STN has a better Return On Invested Capital (11.01%) than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STN is in line with the industry average of 10.22%.
The 3 year average ROIC (8.26%) for STN is below the current ROIC(11.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 14.97% | ||
| ROIC | 11.01% |
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 better Profit Margin (6.09%) than 87.50% of its industry peers.
In the last couple of years the Profit Margin of STN has grown nicely.
STN has a better Operating Margin (9.78%) than 87.50% of its industry peers.
STN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 54.42%, STN belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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 | 9.78% | ||
| PM (TTM) | 6.09% | ||
| GM | 54.42% |
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) just above the Cost of Capital (WACC), STN is creating some value.
STN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for STN has been increased compared to 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 4.31. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN has a Altman-Z score of 4.31. This is amongst the best in the industry. STN outperforms 100.00% of its industry peers.
STN has a debt to FCF ratio of 4.05. This is a neutral value as STN would need 4.05 years to pay back of all of its debts.
STN has a Debt to FCF ratio of 4.05. This is in the better half of the industry: STN outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that STN is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.60, STN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.22
WACC8.99%
2.3 Liquidity
STN has a Current Ratio of 1.29. This is a normal value and indicates that STN is financially healthy and should not expect problems in meeting its short term obligations.
STN's Current ratio of 1.29 is amongst the best of the industry. STN outperforms 87.50% of its industry peers.
A Quick Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
STN has a Quick ratio of 1.29. This is amongst the best in the industry. STN outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
STN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.82%, 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.
The Revenue has grown by 42.47% in the past year. This is a very strong growth!
STN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.59% yearly.
EPS 1Y (TTM)21.82%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%28.89%
Revenue 1Y (TTM)42.47%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%13.35%
3.2 Future
STN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.48% yearly.
STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.08% yearly.
EPS Next Y18.97%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
EPS Next 5YN/A
Revenue Next Year11.73%
Revenue Next 2Y9.76%
Revenue Next 3Y9.08%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.03, the valuation of STN can be described as expensive.
Based on the Price/Earnings ratio, STN is valued a bit cheaper than 75.00% of the companies in the same industry.
STN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.26, STN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as STN.
STN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.03 | ||
| Fwd PE | 25.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
STN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.99 | ||
| EV/EBITDA | 18.43 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
STN has an outstanding profitability rating, which may justify a higher PE ratio.
STN's earnings are expected to grow with 14.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.69
PEG (5Y)1.87
EPS Next 2Y15.86%
EPS Next 3Y14.48%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.61%, which is pretty low.
STN's Dividend Yield is a higher than the industry average which is at 1.59.
With a Dividend Yield of 0.61, STN pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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
21.32% of the earnings are spent on dividend by STN. This is a low number and sustainable payout ratio.
The dividend of STN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.32%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
TSX:STN (6/27/2025, 7:00:00 PM)
150.21
+2.55 (+1.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners76.18%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap17.13B
Analysts78.67
Price Target154.21 (2.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.82
Dividend Growth(5Y)7.51%
DP21.32%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.73%
Min EPS beat(2)3.04%
Max EPS beat(2)10.41%
EPS beat(4)3
Avg EPS beat(4)4.05%
Min EPS beat(4)-0.77%
Max EPS beat(4)10.41%
EPS beat(8)6
Avg EPS beat(8)3.88%
EPS beat(12)9
Avg EPS beat(12)4.18%
EPS beat(16)11
Avg EPS beat(16)3.59%
Revenue beat(2)1
Avg Revenue beat(2)0.74%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)2.67%
Revenue beat(4)1
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)2.67%
Revenue beat(8)5
Avg Revenue beat(8)1.47%
Revenue beat(12)9
Avg Revenue beat(12)1.36%
Revenue beat(16)9
Avg Revenue beat(16)-0.13%
PT rev (1m)6.26%
PT rev (3m)6.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)0%
EPS NY rev (3m)6.85%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.03 | ||
| Fwd PE | 25.26 | ||
| P/S | 2.37 | ||
| P/FCF | 33.99 | ||
| P/OCF | 28.41 | ||
| P/B | 5.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.43 |
EPS(TTM)4.69
EY3.12%
EPS(NY)5.95
Fwd EY3.96%
FCF(TTM)4.42
FCFY2.94%
OCF(TTM)5.29
OCFY3.52%
SpS63.44
BVpS25.82
TBVpS-1.7
PEG (NY)1.69
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 14.97% | ||
| ROCE | 14.23% | ||
| ROIC | 11.01% | ||
| ROICexc | 11.54% | ||
| ROICexgc | 33.81% | ||
| OM | 9.78% | ||
| PM (TTM) | 6.09% | ||
| GM | 54.42% | ||
| FCFM | 6.97% |
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%
ROICexcg growth 3Y14.28%
ROICexcg 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-Score7
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.05 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 31.07% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 7.33 | ||
| Cash Conversion | 58.75% | ||
| Profit Quality | 114.33% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.31 |
F-Score7
WACC8.99%
ROIC/WACC1.22
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)21.82%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%28.89%
EPS Next Y18.97%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
EPS Next 5YN/A
Revenue 1Y (TTM)42.47%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%13.35%
Revenue Next Year11.73%
Revenue Next 2Y9.76%
Revenue Next 3Y9.08%
Revenue Next 5YN/A
EBIT growth 1Y38.31%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year66.46%
EBIT Next 3Y26.93%
EBIT Next 5YN/A
FCF growth 1Y20.2%
FCF growth 3Y12.8%
FCF growth 5Y4.96%
OCF growth 1Y15.98%
OCF growth 3Y14.96%
OCF growth 5Y5.91%