STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STN - CA85472N1096 - Common Stock
136.45 CAD
-0.55 (-0.4%)
STN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 8 industry peers in the Construction & Engineering industry. While STN belongs to the best of the industry regarding profitability, 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 would make STN suitable 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.
- STN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- STN has a better Return On Assets (5.95%) than 62.50% of its industry peers.
- 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.
- The Return On Invested Capital of STN (9.44%) is better than 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 last Return On Invested Capital (9.44%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 7.63%. This is in the better half of the industry: STN outperforms 75.00% of its industry peers.
- In the last couple of years the Profit Margin of STN has grown nicely.
- The Operating Margin of STN (11.23%) is better than 100.00% of its industry peers.
- STN's Operating Margin has improved in the last couple of years.
- The Gross Margin of STN (54.46%) is better than 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.
- Compared to 1 year ago, STN has about the same amount of shares outstanding.
- 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 3.36 indicates that STN is not in any danger for bankruptcy at the moment.
- The Altman-Z score of STN (3.36) is better than 62.50% 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.
- With an excellent Debt to FCF ratio value of 3.36, STN belongs to the best 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.
- The Debt to Equity ratio of STN (0.72) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.99
WACC9.54%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
- STN's Current ratio of 1.27 is fine compared to the rest 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.
- With an excellent Quick ratio value of 1.27, STN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.64% over the past year.
- Measured over the past years, STN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.12% on average per year.
- The Revenue has grown by 12.49% in the past year. This is quite good.
- STN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.59% yearly.
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 26.44, the valuation of STN can be described as expensive.
- 75.00% of the companies in the same industry are more expensive than STN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, STN is valued at the same level.
- The Price/Forward Earnings ratio is 22.38, 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, STN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.44 | ||
| Fwd PE | 22.38 |
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.
- Based on the Price/Free Cash Flow ratio, STN is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.34 | ||
| EV/EBITDA | 17.31 |
4.3 Compensation for Growth
- STN's 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)1.3
PEG (5Y)1.54
EPS Next 2Y17.31%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
- STN has a yearly dividend return of 0.64%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.90, STN pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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
- STN pays out 20.52% of its income as dividend. This is a sustainable payout ratio.
- STN's earnings are growing more than its dividend. This makes the dividend growth 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 26.44 and the Price/Book (PB) ratio is 4.82.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN.CA) is 6 / 10.