STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - TSX:STN - CA85472N1096 - Common Stock
148.63 CAD
+1.71 (+1.16%)
STN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 7 industry peers in the Construction & Engineering industry. STN gets an excellent profitability rating and is at the same time showing great financial health properties. STN has a decent growth rate and is not valued too expensively. With these ratings, STN could be worth investigating further for quality 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.
Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
STN has a Return On Assets of 6.28%. This is comparable to the rest of the industry: STN outperforms 57.14% of its industry peers.
STN has a Return On Equity (14.83%) which is in line with its industry peers.
STN has a Return On Invested Capital (10.25%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for STN is significantly below the industry average of 35.13%.
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.
The Operating Margin of STN (10.71%) is better than 85.71% 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 54.44%, STN belongs to the best 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 | 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.
The number of shares outstanding for STN has been increased compared to 5 years ago.
STN has a better debt/assets ratio than last year.
2.2 Solvency
STN has an Altman-Z score of 4.08. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of STN (4.08) is better than 85.71% 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 Debt to FCF ratio of 3.26. This is amongst the best in the industry. STN outperforms 85.71% 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 has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: STN underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 4.08 |
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.
The Current ratio of STN (1.29) is better than 85.71% 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 85.71% of the companies in the same industry.
| 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.
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.
Looking at the last year, STN shows a decrease in Revenue. The Revenue has decreased by -9.42% in the last year.
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)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
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.
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
Based on the Price/Earnings ratio of 30.15, the valuation of STN can be described as expensive.
STN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.89, STN is valued at the same level.
STN is valuated rather expensively with a Price/Forward Earnings ratio of 23.98.
71.43% of the companies in the same industry are cheaper than STN, based on the Price/Forward Earnings ratio.
STN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.15 | ||
| Fwd PE | 23.98 |
4.2 Price Multiples
85.71% of the companies in the same industry are cheaper than STN, based on the Enterprise Value to EBITDA ratio.
STN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STN is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.03 | ||
| EV/EBITDA | 18.99 |
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 16.04% in the coming years.
PEG (NY)1.4
PEG (5Y)1.76
EPS Next 2Y18.28%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, STN is not a good candidate for dividend investing.
STN's Dividend Yield is comparable with the industry average which is at 1.35.
Compared to an average S&P500 Dividend Yield of 2.36, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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
22.30% of the earnings are spent on dividend by STN. This is a low number and sustainable payout ratio.
STN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.3%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
TSX:STN (11/14/2025, 7:00:00 PM)
148.63
+1.71 (+1.16%)
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 Cap16.95B
Revenue(TTM)6.15B
Net Income(TTM)436.70M
Analysts78.67
Price Target168.58 (13.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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)0.03%
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 | 30.15 | ||
| Fwd PE | 23.98 | ||
| P/S | 2.76 | ||
| P/FCF | 27.03 | ||
| P/OCF | 24.2 | ||
| P/B | 5.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.99 |
EPS(TTM)4.93
EY3.32%
EPS(NY)6.2
Fwd EY4.17%
FCF(TTM)5.5
FCFY3.7%
OCF(TTM)6.14
OCFY4.13%
SpS53.94
BVpS25.82
TBVpS-1.7
PEG (NY)1.4
PEG (5Y)1.76
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 | 4.08 |
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 30.15 and the Price/Book (PB) ratio is 5.76.
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%.