STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - TSX:STN - CA85472N1096 - Common Stock
135.4 CAD
-13.23 (-8.9%)
Overall STN gets a fundamental rating of 6 out of 10. We evaluated STN against 8 industry peers in the Construction & Engineering industry. While STN has a great profitability rating, there are some minor concerns on its financial health. STN has a decent growth rate and is not valued too expensively.
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 decent Return On Assets value of 6.28%, STN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
STN has a Return On Equity (14.83%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 10.25%, STN is doing good in the industry, outperforming 75.00% 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 33.80%.
The 3 year average ROIC (8.26%) for STN is below the current ROIC(10.25%), indicating increased profibility in the last year.
| 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
The Profit Margin of STN (7.10%) is better than 75.00% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
STN's Operating Margin of 10.71% is amongst the best of 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 54.44%. 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 | 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 just above the Cost of Capital (WACC), so STN is still creating some 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 3.95 indicates that STN is not in any danger for bankruptcy at the moment.
STN has a Altman-Z score of 3.95. This is amongst the best in the industry. STN outperforms 87.50% of its industry peers.
The Debt to FCF ratio of STN is 3.26, which is a good value as it means it would take STN, 3.26 years of fcf income to pay off all of its debts.
STN has a better Debt to FCF ratio (3.26) than 75.00% of its industry peers.
STN has a Debt/Equity ratio of 0.60. This is a neutral value indicating STN is somewhat dependend on debt financing.
STN's Debt to Equity ratio of 0.60 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 | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 3.95 |
ROIC/WACC1.11
WACC9.24%
2.3 Liquidity
A Current Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
STN has a better Current ratio (1.29) than 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.
With an excellent Quick ratio value of 1.29, STN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| 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 23.87%, which is quite impressive.
The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
Looking at the last year, STN shows a decrease in Revenue. The Revenue has decreased by -9.42% in the last year.
The Revenue has been growing by 9.59% on average over the past years. This is quite good.
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
STN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.04% yearly.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
STN is valuated quite expensively with a Price/Earnings ratio of 27.46.
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 (25.51), we can say STN is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.85, the valuation of STN can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as STN.
STN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | 21.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STN indicates a slightly more expensive valuation: STN is more expensive than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STN is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.62 | ||
| EV/EBITDA | 18.12 |
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 16.04% in the coming years.
PEG (NY)1.28
PEG (5Y)1.6
EPS Next 2Y18.28%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 1.41, STN pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.61, STN pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of STN is nicely growing with an annual growth rate of 7.51%!
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
22.30% 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.
DP22.3%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
TSX:STN (11/18/2025, 7:00:00 PM)
135.4
-13.23 (-8.9%)
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 Cap15.45B
Revenue(TTM)6.15B
Net Income(TTM)436.70M
Analysts78.67
Price Target168.58 (24.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)1.79%
PT rev (3m)4.54%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.86%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | 21.85 | ||
| P/S | 2.51 | ||
| P/FCF | 24.62 | ||
| P/OCF | 22.05 | ||
| P/B | 5.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.12 |
EPS(TTM)4.93
EY3.64%
EPS(NY)6.2
Fwd EY4.58%
FCF(TTM)5.5
FCFY4.06%
OCF(TTM)6.14
OCFY4.54%
SpS53.94
BVpS25.82
TBVpS-1.7
PEG (NY)1.28
PEG (5Y)1.6
Graham Number53.52
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%
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-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 | 3.95 |
F-Score5
WACC9.24%
ROIC/WACC1.11
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 Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.42%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%6.92%
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
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%
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 27.46 and the Price/Book (PB) ratio is 5.24.
Is the dividend of STANTEC INC sustainable?
The dividend rating of STANTEC INC (STN.CA) is 5 / 10 and the dividend payout ratio is 22.3%.