STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - TSX:STN - CA85472N1096 - Common Stock
152.76 CAD
-0.38 (-0.25%)
Taking everything into account, STN scores 7 out of 10 in our fundamental rating. STN was compared to 6 industry peers in the Construction & Engineering industry. STN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
STN had positive earnings in the past year.
In the past year STN had a positive cash flow from operations.
STN had positive earnings in each of the past 5 years.
In the past 5 years STN always reported a positive cash flow from operatings.
1.2 Ratios
STN's Return On Assets of 6.28% is fine compared to the rest of the industry. STN outperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 14.83%, STN is in line with its industry, outperforming 50.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.25%, STN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STN 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
STN has a better Profit Margin (7.10%) than 66.67% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
STN's Operating Margin of 10.71% is amongst the best of the industry. STN outperforms 83.33% 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 83.33% of the companies in the same industry.
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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STN is still 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
The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
STN has an Altman-Z score of 4.18. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN's Altman-Z score of 4.18 is amongst the best of the industry. STN outperforms 100.00% 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.
Looking at the Debt to FCF ratio, with a value of 3.26, STN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that STN is somewhat dependend on debt financing.
The Debt to Equity ratio of STN (0.60) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.1
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
STN has a Current ratio of 1.29. This is amongst the best in the industry. STN outperforms 83.33% of its industry peers.
A Quick Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
The Quick ratio of STN (1.29) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
STN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.87%, which is quite impressive.
STN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.12% yearly.
The Revenue has decreased by -9.42% in the past 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 15.68% on average over the next years. This is quite good.
Based on estimates for the next years, STN will show a quite strong growth in Revenue. The Revenue will grow by 12.52% on average per year.
EPS Next Y21.77%
EPS Next 2Y18.1%
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
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
The Price/Earnings ratio is 30.99, which means the current valuation is very expensive for STN.
Based on the Price/Earnings ratio, STN is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of STN to the average of the S&P500 Index (27.27), we can say STN is valued inline with the index average.
STN is valuated rather expensively with a Price/Forward Earnings ratio of 24.72.
STN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of STN to the average of the S&P500 Index (22.77), we can say STN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.99 | ||
| Fwd PE | 24.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued a bit more expensive than 66.67% of the companies in the same industry.
STN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STN is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.78 | ||
| EV/EBITDA | 19.67 |
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.
STN's earnings are expected to grow with 15.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)1.81
EPS Next 2Y18.1%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.58%, which is pretty low.
Compared to an average industry Dividend Yield of 1.44, STN has a dividend in line with its industry peers.
With a Dividend Yield of 0.58, STN pays less dividend than the S&P500 average, which is at 2.38.
| 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 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.
The dividend of STN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.3%
EPS Next 2Y18.1%
EPS Next 3Y15.68%
TSX:STN (9/15/2025, 7:00:00 PM)
152.76
-0.38 (-0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners76.18%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap17.43B
Analysts78.67
Price Target165.61 (8.41%)
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)2.7%
PT rev (3m)7.4%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)8.51%
EPS NY rev (1m)2.35%
EPS NY rev (3m)2.35%
Revenue NQ rev (1m)-1.48%
Revenue NQ rev (3m)3.29%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.99 | ||
| Fwd PE | 24.72 | ||
| P/S | 2.83 | ||
| P/FCF | 27.78 | ||
| P/OCF | 24.87 | ||
| P/B | 5.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.67 |
EPS(TTM)4.93
EY3.23%
EPS(NY)6.18
Fwd EY4.04%
FCF(TTM)5.5
FCFY3.6%
OCF(TTM)6.14
OCFY4.02%
SpS53.94
BVpS25.82
TBVpS-1.7
PEG (NY)1.42
PEG (5Y)1.81
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%
ROICexcg growth 3Y14.28%
ROICexcg 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 | 4.18 |
F-Score5
WACC9.32%
ROIC/WACC1.1
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 Y21.77%
EPS Next 2Y18.1%
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 Year66.46%
EBIT Next 3Y26.93%
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%