STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - TSX:STN - CA85472N1096 - Common Stock
151.44 CAD
-1.85 (-1.21%)
Overall STN gets a fundamental rating of 7 out of 10. We evaluated STN against 7 industry peers in the Construction & Engineering industry. STN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. STN is not valued too expensively and it also shows a decent growth rate. These ratings could make STN a good candidate for quality 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.
Each year in the past 5 years STN has been profitable.
STN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.28%, STN is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
STN has a Return On Equity of 14.83%. This is comparable to the rest of the industry: STN outperforms 57.14% of its industry peers.
With a decent Return On Invested Capital value of 10.25%, STN is doing good in the industry, outperforming 71.43% 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 in line with the industry average of 9.40%.
The last Return On Invested Capital (10.25%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 7.10%, STN is in the better half of the industry, outperforming 71.43% 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 10.71%, STN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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 85.71% 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
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 4.19 indicates that STN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.19, STN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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 85.71% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that STN is somewhat dependend on debt financing.
STN has a Debt to Equity ratio (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.09
WACC9.42%
2.3 Liquidity
A Current Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.29, STN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
STN has a Quick Ratio of 1.29. 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 (1.29) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.87% 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 decreased by -9.42% in the past 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 15.68% yearly.
The Revenue is expected to grow by 12.52% on average over the next years. This is quite good.
EPS Next Y21.5%
EPS Next 2Y18.06%
EPS Next 3Y15.68%
EPS Next 5YN/A
Revenue Next Year12.31%
Revenue Next 2Y11.32%
Revenue Next 3Y12.52%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.72 indicates a quite expensive valuation of STN.
Compared to the rest of the industry, the Price/Earnings ratio of STN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of STN to the average of the S&P500 Index (25.83), we can say STN is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.53, STN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, STN is valued a bit more expensive than 71.43% of the companies in the same industry.
STN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.72 | ||
| Fwd PE | 24.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, STN is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.54 | ||
| EV/EBITDA | 19.73 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent 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 15.68% in the coming years.
PEG (NY)1.43
PEG (5Y)1.79
EPS Next 2Y18.06%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.58%, which is pretty low.
STN's Dividend Yield is comparable with the industry average which is at 1.23.
With a Dividend Yield of 0.58, STN pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
STN pays out 22.30% of its income as dividend. This is a sustainable payout ratio.
The dividend of STN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.3%
EPS Next 2Y18.06%
EPS Next 3Y15.68%
TSX:STN (11/7/2025, 7:00:00 PM)
151.44
-1.85 (-1.21%)
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 Cap17.27B
Revenue(TTM)6.15B
Net Income(TTM)436.70M
Analysts78.67
Price Target168.58 (11.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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)7.45%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.86%
EPS NY rev (1m)0%
EPS NY rev (3m)2.13%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.72 | ||
| Fwd PE | 24.53 | ||
| P/S | 2.81 | ||
| P/FCF | 27.54 | ||
| P/OCF | 24.66 | ||
| P/B | 5.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.73 |
EPS(TTM)4.93
EY3.26%
EPS(NY)6.17
Fwd EY4.08%
FCF(TTM)5.5
FCFY3.63%
OCF(TTM)6.14
OCFY4.06%
SpS53.94
BVpS25.82
TBVpS-1.7
PEG (NY)1.43
PEG (5Y)1.79
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 | 4.19 |
F-Score5
WACC9.42%
ROIC/WACC1.09
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 Y21.5%
EPS Next 2Y18.06%
EPS Next 3Y15.68%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.42%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%6.92%
Revenue Next Year12.31%
Revenue Next 2Y11.32%
Revenue Next 3Y12.52%
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 7 / 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 8 / 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 30.72 and the Price/Book (PB) ratio is 5.87.
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%.