STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - TSX:STN - CA85472N1096 - Common Stock
157.58 CAD
-0.41 (-0.26%)
We assign a fundamental rating of 7 out of 10 to STN. STN was compared to 6 industry peers in the Construction & Engineering industry. STN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. STN is not valued too expensively and it also shows a decent growth rate. With these ratings, STN could be worth investigating further for 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.
STN had positive earnings in each of the past 5 years.
In the past 5 years STN always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.28%, STN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
STN has a Return On Equity (14.83%) which is comparable to the rest of the industry.
STN has a Return On Invested Capital of 10.25%. This is in the better half of the industry: STN outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STN is in line with the industry average of 9.40%.
The last Return On Invested Capital (10.25%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 14.83% | ||
| ROIC | 10.25% |
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 (7.10%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of STN has grown nicely.
With an excellent Operating Margin value of 10.71%, STN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
STN's Operating Margin has improved in the last couple of years.
The Gross Margin of STN (54.44%) is better than 83.33% of its industry peers.
STN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.71% | ||
| PM (TTM) | 7.1% | ||
| GM | 54.44% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
An Altman-Z score of 4.26 indicates that STN is not in any danger for bankruptcy at the moment.
The Altman-Z score of STN (4.26) is better than 100.00% of its industry peers.
STN has a debt to FCF ratio of 3.26. This is a good value and a sign of high solvency as STN would need 3.26 years to pay back of all of its debts.
STN has a Debt to FCF ratio of 3.26. This is amongst the best in the industry. STN outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that STN is somewhat dependend on debt financing.
STN has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: STN underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 4.26 |
ROIC/WACC0.97
WACC10.55%
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.
With an excellent Current ratio value of 1.29, STN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
STN has a Quick 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 Quick ratio of 1.29 is amongst the best of the industry. STN outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.87% over the past year.
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 a decrease in Revenue. In the last year, the revenue decreased by -9.42%.
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)23.87%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%21.43%
Revenue 1Y (TTM)-9.42%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%6.92%
3.2 Future
The Earnings Per Share is expected to grow by 15.68% 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 12.52% on average per year.
EPS Next Y21.5%
EPS Next 2Y18.06%
EPS Next 3Y15.68%
EPS Next 5YN/A
Revenue Next Year12.31%
Revenue Next 2Y11.32%
Revenue Next 3Y12.52%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.96, which means the current valuation is very expensive for STN.
Based on the Price/Earnings ratio, STN is valued a bit cheaper than 66.67% of the companies in the same industry.
STN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.31.
A Price/Forward Earnings ratio of 25.52 indicates a quite expensive valuation of STN.
Based on the Price/Forward Earnings ratio, STN is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.85. STN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.96 | ||
| Fwd PE | 25.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, STN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.65 | ||
| EV/EBITDA | 20.24 |
4.3 Compensation for Growth
STN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of STN may justify a higher PE ratio.
STN's earnings are expected to grow with 15.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)1.87
EPS Next 2Y18.06%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.58%, which is pretty low.
Compared to an average industry Dividend Yield of 1.36, STN has a dividend in line with its industry peers.
With a Dividend Yield of 0.58, STN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
STN pays out 22.30% 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.
DP22.3%
EPS Next 2Y18.06%
EPS Next 3Y15.68%
TSX:STN (10/15/2025, 7:00:00 PM)
157.58
-0.41 (-0.26%)
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 Cap17.98B
Analysts78.67
Price Target165.61 (5.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.82
Dividend Growth(5Y)7.51%
DP22.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.42%
Min EPS beat(2)-1.14%
Max EPS beat(2)3.98%
EPS beat(4)3
Avg EPS beat(4)4.07%
Min EPS beat(4)-1.14%
Max EPS beat(4)10.41%
EPS beat(8)5
Avg EPS beat(8)3.7%
EPS beat(12)8
Avg EPS beat(12)3.93%
EPS beat(16)11
Avg EPS beat(16)3.61%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-0.51%
Revenue beat(4)1
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)2.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)7
Avg Revenue beat(12)0.81%
Revenue beat(16)9
Avg Revenue beat(16)0.33%
PT rev (1m)0%
PT rev (3m)7.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.14%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)2.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.96 | ||
| Fwd PE | 25.52 | ||
| P/S | 2.92 | ||
| P/FCF | 28.65 | ||
| P/OCF | 25.66 | ||
| P/B | 6.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.24 |
EPS(TTM)4.93
EY3.13%
EPS(NY)6.17
Fwd EY3.92%
FCF(TTM)5.5
FCFY3.49%
OCF(TTM)6.14
OCFY3.9%
SpS53.94
BVpS25.82
TBVpS-1.7
PEG (NY)1.49
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 14.83% | ||
| ROCE | 13.24% | ||
| ROIC | 10.25% | ||
| ROICexc | 10.74% | ||
| ROICexgc | 31.47% | ||
| OM | 10.71% | ||
| PM (TTM) | 7.1% | ||
| GM | 54.44% | ||
| FCFM | 10.2% |
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-Score5
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 23.09% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 7.27 | ||
| Cash Conversion | 71.75% | ||
| Profit Quality | 143.65% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.26 |
F-Score5
WACC10.55%
ROIC/WACC0.97
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)23.87%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%21.43%
EPS Next Y21.5%
EPS Next 2Y18.06%
EPS Next 3Y15.68%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.42%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%6.92%
Revenue Next Year12.31%
Revenue Next 2Y11.32%
Revenue Next 3Y12.52%
Revenue Next 5YN/A
EBIT growth 1Y-0.27%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year66.9%
EBIT Next 3Y26.65%
EBIT Next 5YN/A
FCF growth 1Y118.04%
FCF growth 3Y12.8%
FCF growth 5Y4.96%
OCF growth 1Y89.15%
OCF growth 3Y14.96%
OCF growth 5Y5.91%