STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STN - CA85472N1096 - Common Stock
132.65 CAD
-0.13 (-0.1%)
Taking everything into account, STN scores 6 out of 10 in our fundamental rating. STN was compared to 7 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making STN a very profitable company, without any liquidiy or solvency issues. STN is growing strongly while it is still valued neutral. This is a good combination! This makes STN very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year STN was profitable.
STN had a positive operating cash flow in the past year.
STN had positive earnings in each of the past 5 years.
Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
STN has a Return On Assets (5.95%) which is in line with its industry peers.
STN has a Return On Equity of 14.97%. This is comparable to the rest of the industry: STN outperforms 42.86% of its industry peers.
STN has a Return On Invested Capital (9.44%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for STN is significantly below the industry average of 33.49%.
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 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of STN has grown nicely.
STN's Operating Margin of 11.23% is amongst the best of the industry. STN outperforms 100.00% of its industry peers.
STN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 54.46%, STN belongs to the top of the industry, outperforming 85.71% 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
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.
Compared to 5 years ago, STN has more shares outstanding
The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.31 indicates that STN is not in any danger for bankruptcy at the moment.
STN has a Altman-Z score of 3.31. This is amongst the best in the industry. STN outperforms 85.71% of its industry peers.
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.
STN's Debt to FCF ratio of 3.36 is amongst the best of the industry. STN outperforms 85.71% 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 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.31 |
ROIC/WACC1
WACC9.4%
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 better Current ratio (1.27) than 71.43% 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 has a better Quick ratio (1.27) than 85.71% 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.
STN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.12% yearly.
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 16.04% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.65% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 25.71, the valuation of STN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of STN is on the same level as its industry peers.
STN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.40, STN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, STN is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
STN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
85.71% of the companies in the same industry are more expensive than STN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.8 | ||
| EV/EBITDA | 16.89 |
4.3 Compensation for Growth
The 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.
STN's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)1.5
EPS Next 2Y18.28%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, STN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.44, STN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
On average, the dividend of STN grows each year by 7.51%, which is quite nice.
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
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 2Y18.28%
EPS Next 3Y16.04%
TSX:STN (11/21/2025, 7:00:00 PM)
132.65
-0.13 (-0.1%)
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 Cap15.13B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target170.43 (28.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.82
Dividend Growth(5Y)7.51%
DP20.52%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)2.91%
PT rev (3m)5.69%
EPS NQ rev (1m)-5.24%
EPS NQ rev (3m)5.24%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)7.52%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 21.4 | ||
| P/S | 2.39 | ||
| P/FCF | 18.8 | ||
| P/OCF | 17.65 | ||
| P/B | 4.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.89 |
EPS(TTM)5.16
EY3.89%
EPS(NY)6.2
Fwd EY4.67%
FCF(TTM)7.06
FCFY5.32%
OCF(TTM)7.52
OCFY5.67%
SpS55.52
BVpS28.31
TBVpS-5.45
PEG (NY)1.19
PEG (5Y)1.5
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 | 3.31 |
F-Score6
WACC9.4%
ROIC/WACC1
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 Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue 1Y (TTM)12.49%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%11.84%
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
Revenue Next 5YN/A
EBIT growth 1Y34.51%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year66.9%
EBIT Next 3Y26.65%
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.
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 25.71 and the Price/Book (PB) ratio is 4.68.
Is the dividend of STANTEC INC sustainable?
The dividend rating of STANTEC INC (STN.CA) is 5 / 10 and the dividend payout ratio is 20.52%.