STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STN - CA85472N1096 - Common Stock
137.26 CAD
-0.3 (-0.22%)
Overall STN gets a fundamental rating of 6 out of 10. We evaluated STN against 8 industry peers in the Construction & Engineering industry. STN scores excellent on profitability, 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.
- 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
- Looking at the Return On Assets, with a value of 5.95%, STN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- STN has a Return On Equity of 14.97%. This is comparable to the rest of the industry: STN outperforms 50.00% of its industry peers.
- 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.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of STN (7.63%) is better than 75.00% of its industry peers.
- In the last couple of years the Profit Margin of STN has grown nicely.
- STN has a better Operating Margin (11.23%) than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of STN has grown nicely.
- With an excellent Gross Margin value of 54.46%, STN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- 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
- 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.
- 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.
- With a decent Altman-Z score value of 3.37, STN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- STN has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as STN would need 3.36 years to pay back of all of its debts.
- STN has a Debt to FCF ratio of 3.36. This is amongst the best in the industry. STN outperforms 87.50% of its industry peers.
- 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 | 3.37 |
ROIC/WACC0.99
WACC9.56%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
- STN has a Current ratio of 1.27. This is in the better half of the industry: STN outperforms 75.00% of its industry peers.
- A Quick Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
- STN's Quick ratio of 1.27 is amongst the best of the industry. STN outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.64% over the past year.
- The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
- The Revenue has grown by 12.49% in the past year. This is quite good.
- Measured over the past years, STN shows a quite strong growth in Revenue. The Revenue has been growing by 9.59% on average per year.
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
- The Earnings Per Share is expected to grow by 15.33% 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 9.23% on average per year.
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.
- 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
- With a Price/Earnings ratio of 26.60, STN can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, STN is valued a bit cheaper than 75.00% of the companies in the same industry.
- STN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 22.51, STN is valued on the expensive side.
- STN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STN is cheaper than 62.50% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, STN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 22.51 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 62.50% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of STN indicates a rather cheap valuation: STN is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.45 | ||
| EV/EBITDA | 17.4 |
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)1.31
PEG (5Y)1.55
EPS Next 2Y17.31%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.64%, STN is not a good candidate for dividend investing.
- STN's Dividend Yield is a higher than the industry average which is at 0.90.
- With a Dividend Yield of 0.64, STN pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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
- 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 26.6 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.