STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STN - CA85472N1096 - Common Stock
137.28 CAD
+0.47 (+0.34%)
STN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 8 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
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.
Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.95%, STN is doing good in 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 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
With a decent Profit Margin value of 7.63%, STN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
STN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.23%, STN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
STN's Operating Margin has improved in the last couple of years.
STN has a Gross Margin of 54.46%. This is amongst the best in the industry. STN outperforms 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.
The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.37 indicates that STN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.37, STN is in the better half of the industry, outperforming 62.50% of the companies in the same 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.
The Debt to FCF ratio of STN (3.36) is better than 75.00% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that STN is somewhat dependend on debt financing.
STN has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: STN underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.37 |
ROIC/WACC1.03
WACC9.19%
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 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.
The Quick ratio of STN (1.27) is better than 87.50% of its industry peers.
| 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.
The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
STN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.49%.
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
Based on estimates for the next years, STN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.22% on average per year.
STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.23% yearly.
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
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.60 indicates a quite expensive valuation of STN.
Based on the Price/Earnings ratio, STN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of STN to the average of the S&P500 Index (27.25), we can say STN is valued inline with the index average.
A Price/Forward Earnings ratio of 22.51 indicates a rather expensive valuation of STN.
STN's Price/Forward Earnings ratio is in line with the industry average.
STN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 22.51 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than STN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, STN is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.46 | ||
| EV/EBITDA | 17.4 |
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 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 15.22% in the coming years.
PEG (NY)1.32
PEG (5Y)1.55
EPS Next 2Y17.33%
EPS Next 3Y15.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, STN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.09, STN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of STN is nicely growing with an annual growth rate of 7.51%!
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 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 2Y17.33%
EPS Next 3Y15.22%
TSX:STN (1/12/2026, 7:00:00 PM)
137.28
+0.47 (+0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners73.54%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap15.66B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target172.2 (25.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)0.32%
PT rev (3m)3.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 22.51 | ||
| P/S | 2.47 | ||
| P/FCF | 19.46 | ||
| P/OCF | 18.26 | ||
| P/B | 4.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.4 |
EPS(TTM)5.16
EY3.76%
EPS(NY)6.1
Fwd EY4.44%
FCF(TTM)7.06
FCFY5.14%
OCF(TTM)7.52
OCFY5.48%
SpS55.52
BVpS28.31
TBVpS-5.45
PEG (NY)1.32
PEG (5Y)1.55
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 | 3.37 |
F-Score6
WACC9.19%
ROIC/WACC1.03
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 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.
Can you provide the PE and PB ratios for STN stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN.CA) is 26.6 and the Price/Book (PB) ratio is 4.85.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN.CA) is 6 / 10.