STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STN - CA85472N1096 - Common Stock
134.39 CAD
-1.14 (-0.84%)
We assign a fundamental rating of 7 out of 10 to STN. 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make STN a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
STN had positive earnings in the past year.
In the past year STN had a positive cash flow from operations.
Each year in the past 5 years STN has been profitable.
In the past 5 years STN always reported a positive cash flow from operatings.
1.2 Ratios
STN's Return On Assets of 5.95% is in line compared to the rest of the industry. STN outperforms 57.14% of 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 comparable to the rest of the industry.
STN had an Average Return On Invested Capital over the past 3 years of 8.26%. This is significantly below the industry average of 34.44%.
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
Looking at the Profit Margin, with a value of 7.63%, STN is in the better half of 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.
The Operating Margin of STN (11.23%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of STN has grown nicely.
STN has a Gross Margin of 54.46%. 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 | 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) just above the Cost of Capital (WACC), STN is creating some value.
Compared to 1 year ago, STN has about the same amount of shares outstanding.
Compared to 5 years ago, STN has more shares outstanding
Compared to 1 year ago, STN has an improved debt to assets ratio.
2.2 Solvency
STN has an Altman-Z score of 3.33. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN has a Altman-Z score of 3.33. This is amongst the best in the industry. STN outperforms 85.71% of its industry peers.
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's Debt to FCF ratio of 3.36 is amongst the best of the industry. STN outperforms 85.71% of its industry peers.
STN has a Debt/Equity ratio of 0.72. This is a neutral value indicating STN is somewhat dependend on debt financing.
The Debt to Equity ratio of STN (0.72) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.08
WACC8.76%
2.3 Liquidity
STN has a Current Ratio of 1.27. 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 Current ratio (1.27) than 71.43% of its industry peers.
STN has a Quick Ratio of 1.27. This is a normal value and indicates that STN is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.27, STN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| 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.
STN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.49%.
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
STN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.04% yearly.
Based on estimates for the next years, STN will show a quite strong growth in Revenue. The Revenue will grow by 12.65% on average per year.
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
The Price/Earnings ratio is 26.04, which means the current valuation is very expensive for STN.
Based on the Price/Earnings ratio, STN is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of STN to the average of the S&P500 Index (26.31), we can say STN is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.68, the valuation of STN can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as STN.
When comparing the Price/Forward Earnings ratio of STN to the average of the S&P500 Index (36.56), we can say STN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 21.68 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than STN, based on the Enterprise Value to EBITDA ratio.
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 | 19.05 | ||
| EV/EBITDA | 17.08 |
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)1.21
PEG (5Y)1.52
EPS Next 2Y18.28%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 1.39, STN has a dividend in line with its industry peers.
With a Dividend Yield of 0.66, STN pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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 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 2Y18.28%
EPS Next 3Y16.04%
TSX:STN (11/28/2025, 7:00:00 PM)
134.39
-1.14 (-0.84%)
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 Cap15.33B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target170.43 (26.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)2.91%
EPS NQ rev (1m)-5.61%
EPS NQ rev (3m)-4.95%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 21.68 | ||
| P/S | 2.42 | ||
| P/FCF | 19.05 | ||
| P/OCF | 17.88 | ||
| P/B | 4.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.08 |
EPS(TTM)5.16
EY3.84%
EPS(NY)6.2
Fwd EY4.61%
FCF(TTM)7.06
FCFY5.25%
OCF(TTM)7.52
OCFY5.59%
SpS55.52
BVpS28.31
TBVpS-5.45
PEG (NY)1.21
PEG (5Y)1.52
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 | 3.33 |
F-Score6
WACC8.76%
ROIC/WACC1.08
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 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.
What are the PE and PB ratios of STANTEC INC (STN.CA) stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN.CA) is 26.04 and the Price/Book (PB) ratio is 4.75.
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%.