STANTEC INC (STN.CA) Fundamental Analysis & Valuation

TSX:STN • CA85472N1096

Current stock price

124.06 CAD
+1.55 (+1.27%)
Last:

This STN.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. STN.CA Profitability Analysis

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.
  • STN had a positive operating cash flow in each of the past 5 years.
STN.CA Yearly Net Income VS EBIT VS OCF VS FCFSTN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of STN (6.02%) is better than 75.00% of its industry peers.
  • STN's Return On Equity of 14.79% is fine compared to the rest of the industry. STN outperforms 75.00% of its industry peers.
  • STN has a Return On Invested Capital of 9.66%. This is amongst the best in the industry. STN outperforms 100.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for STN is in line with the industry average of 7.57%.
  • The last Return On Invested Capital (9.66%) for STN is above the 3 year average (9.04%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.02%
ROE 14.79%
ROIC 9.66%
ROA(3y)5.57%
ROA(5y)4.98%
ROE(3y)13.33%
ROE(5y)12.16%
ROIC(3y)9.04%
ROIC(5y)7.96%
STN.CA Yearly ROA, ROE, ROICSTN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10

1.3 Margins

  • STN has a better Profit Margin (7.38%) than 87.50% of its industry peers.
  • STN's Profit Margin has improved in the last couple of years.
  • STN's Operating Margin of 11.07% is amongst the best of the industry. STN outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of STN has grown nicely.
  • STN's Gross Margin of 54.34% is amongst the best of the industry. STN outperforms 100.00% 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 RankSector Rank
OM 11.07%
PM (TTM) 7.38%
GM 54.34%
OM growth 3Y7.91%
OM growth 5Y3.12%
PM growth 3Y10.03%
PM growth 5Y9.71%
GM growth 3Y0.06%
GM growth 5Y0.73%
STN.CA Yearly Profit, Operating, Gross MarginsSTN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

6

2. STN.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STN is still creating some value.
  • STN has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for STN has been increased compared to 5 years ago.
  • STN has a worse debt/assets ratio than last year.
STN.CA Yearly Shares OutstandingSTN.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
STN.CA Yearly Total Debt VS Total AssetsSTN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 3.30 indicates that STN is not in any danger for bankruptcy at the moment.
  • STN's Altman-Z score of 3.30 is fine compared to the rest of the industry. STN outperforms 75.00% of its industry peers.
  • The Debt to FCF ratio of STN is 3.22, which is a good value as it means it would take STN, 3.22 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.22, STN belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • STN has a Debt/Equity ratio of 0.66. This is a neutral value indicating STN is somewhat dependend on debt financing.
  • STN has a Debt to Equity ratio of 0.66. This is comparable to the rest of the industry: STN outperforms 50.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 3.22
Altman-Z 3.3
ROIC/WACC1.03
WACC9.4%
STN.CA Yearly LT Debt VS Equity VS FCFSTN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • STN has a Current Ratio of 1.23. This is a normal value and indicates that STN is financially healthy and should not expect problems in meeting its short term obligations.
  • With a decent Current ratio value of 1.23, STN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
  • STN has a Quick Ratio of 1.23. 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 Quick ratio of 1.23. This is in the better half of the industry: STN outperforms 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 1.23
STN.CA Yearly Current Assets VS Current LiabilitesSTN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

6

3. STN.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 19.64% over the past year.
  • The Earnings Per Share has been growing by 18.90% on average over the past years. This is quite good.
  • STN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.71%.
  • The Revenue has been growing by 12.01% on average over the past years. This is quite good.
EPS 1Y (TTM)19.64%
EPS 3Y19.32%
EPS 5Y18.9%
EPS Q2Q%12.61%
Revenue 1Y (TTM)10.71%
Revenue growth 3Y13.37%
Revenue growth 5Y12.01%
Sales Q2Q%10.91%

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 14.58% on average per year.
  • The Revenue is expected to grow by 8.23% on average over the next years. This is quite good.
EPS Next Y17.23%
EPS Next 2Y14.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.87%
Revenue Next 2Y8.23%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
STN.CA Yearly Revenue VS EstimatesSTN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
STN.CA Yearly EPS VS EstimatesSTN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

6

4. STN.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.41, the valuation of STN can be described as rather expensive.
  • 100.00% of the companies in the same industry are more expensive than STN, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of STN to the average of the S&P500 Index (26.77), we can say STN is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 19.97, STN is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, STN is valued a bit cheaper than 75.00% of the companies in the same industry.
  • STN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.75.
Industry RankSector Rank
PE 23.41
Fwd PE 19.97
STN.CA Price Earnings VS Forward Price EarningsSTN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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.
  • 87.50% of the companies in the same industry are more expensive than STN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.89
EV/EBITDA 15.2
STN.CA Per share dataSTN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • STN has an outstanding 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 14.58% in the coming years.
PEG (NY)1.36
PEG (5Y)1.24
EPS Next 2Y14.58%
EPS Next 3YN/A

5

5. STN.CA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.80%, STN is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.77, 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 RankSector Rank
Dividend Yield 0.8%

5.2 History

  • The dividend of STN is nicely growing with an annual growth rate of 7.67%!
  • STN has been paying a dividend for at least 10 years, so it has a reliable track record.
  • STN has decreased its dividend recently.
Dividend Growth(5Y)7.67%
Div Incr Years1
Div Non Decr Years1
STN.CA Yearly Dividends per shareSTN.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • STN pays out 21.07% 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.
DP21.07%
EPS Next 2Y14.58%
EPS Next 3YN/A
STN.CA Yearly Income VS Free CF VS DividendSTN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
STN.CA Dividend Payout.STN.CA Dividend Payout, showing the Payout Ratio.STN.CA Dividend Payout.PayoutRetained Earnings

STN.CA Fundamentals: All Metrics, Ratios and Statistics

STANTEC INC

TSX:STN (4/30/2026, 7:00:00 PM)

124.06

+1.55 (+1.27%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Industry Strength63.78
Industry Growth79.1
Earnings (Last)02-25
Earnings (Next)05-13
Inst Owners79.47%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap14.15B
Revenue(TTM)6.49B
Net Income(TTM)479.40M
Analysts78.67
Price Target163.11 (31.48%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend0.89
Dividend Growth(5Y)7.67%
DP21.07%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.44%
Min EPS beat(2)-0.99%
Max EPS beat(2)1.86%
EPS beat(4)2
Avg EPS beat(4)0.93%
Min EPS beat(4)-1.14%
Max EPS beat(4)3.98%
EPS beat(8)5
Avg EPS beat(8)2.49%
EPS beat(12)8
Avg EPS beat(12)2.9%
EPS beat(16)11
Avg EPS beat(16)3.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)-0.51%
Revenue beat(8)1
Avg Revenue beat(8)-0.72%
Revenue beat(12)5
Avg Revenue beat(12)0.43%
Revenue beat(16)9
Avg Revenue beat(16)0.61%
PT rev (1m)-6.29%
PT rev (3m)-5.28%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.33%
Valuation
Industry RankSector Rank
PE 23.41
Fwd PE 19.97
P/S 2.18
P/FCF 17.89
P/OCF 16.4
P/B 4.37
P/tB N/A
EV/EBITDA 15.2
EPS(TTM)5.3
EY4.27%
EPS(NY)6.21
Fwd EY5.01%
FCF(TTM)6.93
FCFY5.59%
OCF(TTM)7.56
OCFY6.1%
SpS56.94
BVpS28.41
TBVpS-5.05
PEG (NY)1.36
PEG (5Y)1.24
Graham Number58.2027 (-53.09%)
Profitability
Industry RankSector Rank
ROA 6.02%
ROE 14.79%
ROCE 12.63%
ROIC 9.66%
ROICexc 10.38%
ROICexgc 36.7%
OM 11.07%
PM (TTM) 7.38%
GM 54.34%
FCFM 12.18%
ROA(3y)5.57%
ROA(5y)4.98%
ROE(3y)13.33%
ROE(5y)12.16%
ROIC(3y)9.04%
ROIC(5y)7.96%
ROICexc(3y)9.69%
ROICexc(5y)8.46%
ROICexgc(3y)29.32%
ROICexgc(5y)25.17%
ROCE(3y)11.82%
ROCE(5y)10.42%
ROICexgc growth 3Y21.99%
ROICexgc growth 5Y11.47%
ROICexc growth 3Y12.69%
ROICexc growth 5Y3.78%
OM growth 3Y7.91%
OM growth 5Y3.12%
PM growth 3Y10.03%
PM growth 5Y9.71%
GM growth 3Y0.06%
GM growth 5Y0.73%
F-Score4
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 3.22
Debt/EBITDA 2
Cap/Depr 20.44%
Cap/Sales 1.11%
Interest Coverage 8.59
Cash Conversion 80.61%
Profit Quality 165%
Current Ratio 1.23
Quick Ratio 1.23
Altman-Z 3.3
F-Score4
WACC9.4%
ROIC/WACC1.03
Cap/Depr(3y)29%
Cap/Depr(5y)26.36%
Cap/Sales(3y)1.59%
Cap/Sales(5y)1.52%
Profit Quality(3y)145.65%
Profit Quality(5y)141.48%
High Growth Momentum
Growth
EPS 1Y (TTM)19.64%
EPS 3Y19.32%
EPS 5Y18.9%
EPS Q2Q%12.61%
EPS Next Y17.23%
EPS Next 2Y14.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.71%
Revenue growth 3Y13.37%
Revenue growth 5Y12.01%
Sales Q2Q%10.91%
Revenue Next Year9.87%
Revenue Next 2Y8.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.89%
EBIT growth 3Y22.34%
EBIT growth 5Y15.5%
EBIT Next Year55.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y56.91%
FCF growth 3Y49.7%
FCF growth 5Y6.68%
OCF growth 1Y43.08%
OCF growth 3Y41.54%
OCF growth 5Y7.4%

STANTEC INC / STN.CA Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for STANTEC INC?

ChartMill assigns a fundamental rating of 7 / 10 to STN.CA.


Can you provide the valuation status for STANTEC INC?

ChartMill assigns a valuation rating of 6 / 10 to STANTEC INC (STN.CA). This can be considered as Fairly Valued.


What is the profitability of STN stock?

STANTEC INC (STN.CA) has a profitability rating of 8 / 10.


What is the expected EPS growth for STANTEC INC (STN.CA) stock?

The Earnings per Share (EPS) of STANTEC INC (STN.CA) is expected to grow by 17.23% in the next year.


Can you provide the dividend sustainability for STN stock?

The dividend rating of STANTEC INC (STN.CA) is 5 / 10 and the dividend payout ratio is 21.07%.