STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:STN • CA85472N1096
134.94 CAD
-1.3 (-0.95%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, STN scores 6 out of 10 in our fundamental rating. STN was compared to 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 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 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.
- STN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of STN (5.95%) is better than 62.50% of its industry peers.
- STN has a Return On Equity (14.97%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.44%, STN is in the better half of the industry, outperforming 62.50% 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's Profit Margin of 7.63% is fine compared to the rest of the industry. STN outperforms 75.00% of its industry peers.
- STN's Profit Margin has improved in the last couple of years.
- STN has a Operating Margin of 11.23%. This is amongst the best in the industry. STN outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of STN has grown nicely.
- STN has a Gross Margin of 54.46%. This is amongst the best in the industry. STN outperforms 87.50% 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.
- 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.
- STN has a better debt/assets ratio than last year.
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 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.
- Looking at the Debt to FCF ratio, with a value of 3.36, STN belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- A Debt/Equity ratio of 0.72 indicates that STN is somewhat dependend on debt financing.
- STN's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. STN is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.99
WACC9.53%
2.3 Liquidity
- STN has a Current Ratio of 1.27. This is a normal value and indicates that STN is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of STN (1.27) is better than 75.00% of its industry peers.
- STN has a Quick Ratio of 1.27. This is a normal value and indicates that STN is financially healthy and should not expect problems in meeting its short term obligations.
- STN has a better Quick ratio (1.27) 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.
- STN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.12% yearly.
- 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 15.33% on average per year.
- The Revenue is expected to grow by 9.23% on average over the next years. This is quite good.
EPS Next Y20.33%
EPS Next 2Y17.31%
EPS Next 3Y15.33%
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.
- 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
- Based on the Price/Earnings ratio of 26.15, the valuation of STN can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 75.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, STN is valued at the same level.
- The Price/Forward Earnings ratio is 22.13, which indicates a rather expensive current valuation of STN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 75.00% of the companies listed in the same industry.
- STN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 22.13 |
4.2 Price Multiples
- STN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STN is cheaper than 62.50% of the companies in the same industry.
- STN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STN is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.12 | ||
| EV/EBITDA | 17.14 |
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 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 15.33% in the coming years.
PEG (NY)1.29
PEG (5Y)1.53
EPS Next 2Y17.31%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.66%, STN is not a good candidate for dividend investing.
- STN's Dividend Yield is a higher than the industry average which is at 0.89.
- Compared to an average S&P500 Dividend Yield of 1.83, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
- 20.52% 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.
DP20.52%
EPS Next 2Y17.31%
EPS Next 3Y15.33%
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 26.15 and the Price/Book (PB) ratio is 4.77.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN.CA) is 6 / 10.