STANTEC INC (STN) Stock Fundamental Analysis
USA - NYSE:STN - CA85472N1096 - Common Stock
111.81 USD
-0.78 (-0.69%)
We assign a fundamental rating of 6 out of 10 to STN. STN was compared to 54 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year STN was profitable.
STN had a positive operating cash flow in the past year.
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 6.28% is fine compared to the rest of the industry. STN outperforms 70.37% of its industry peers.
Looking at the Return On Equity, with a value of 14.83%, STN is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
The Return On Invested Capital of STN (10.25%) is better than 70.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STN is significantly below the industry average of 17.10%.
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's Profit Margin of 7.10% is fine compared to the rest of the industry. STN outperforms 77.78% of its industry peers.
In the last couple of years the Profit Margin of STN has grown nicely.
STN has a Operating Margin of 10.71%. This is in the better half of the industry: STN outperforms 75.93% of its industry peers.
In the last couple of years the Operating Margin of STN has grown nicely.
STN has a Gross Margin of 54.44%. This is amongst the best in the industry. STN outperforms 96.30% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STN is destroying value.
The number of shares outstanding for STN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, STN has more shares outstanding
STN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.27 indicates that STN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.27, STN is doing good in the industry, outperforming 64.81% of the companies in the same industry.
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's Debt to FCF ratio of 3.26 is fine compared to the rest of the industry. STN outperforms 64.81% 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 comparable to the rest of the industry: STN outperforms 53.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 4.27 |
ROIC/WACC0.97
WACC10.53%
2.3 Liquidity
STN has a Current Ratio of 1.29. This is a normal value and indicates that STN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.29, STN is in line with its industry, outperforming 55.56% of the companies in the same industry.
STN has a Quick Ratio of 1.29. 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 (1.29) which is comparable to the rest of the 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.
The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
The Revenue has decreased by -9.42% in the past year.
The Revenue has been growing by 9.59% on average over the past years. This is quite good.
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
STN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.68% yearly.
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 Y21.5%
EPS Next 2Y18.06%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 31.85, STN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of STN is on the same level as its industry peers.
STN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.47, STN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, STN is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, STN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.85 | ||
| Fwd PE | 25.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STN.
STN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STN is cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.6 | ||
| EV/EBITDA | 20.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of STN 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)1.48
PEG (5Y)1.86
EPS Next 2Y18.06%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, STN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.66, STN pays a better dividend. On top of this STN pays more dividend than 88.89% of the companies listed in the same industry.
With a Dividend Yield of 0.58, STN pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
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 2Y18.06%
EPS Next 3Y15.68%
NYSE:STN (10/15/2025, 12:05:20 PM)
111.81
-0.78 (-0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner Change-0.01%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap12.75B
Analysts78.67
Price Target118.9 (6.34%)
Short Float %0.69%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.59
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)-0.34%
PT rev (3m)5.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.14%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)2.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.85 | ||
| Fwd PE | 25.47 | ||
| P/S | 2.92 | ||
| P/FCF | 28.6 | ||
| P/OCF | 25.6 | ||
| P/B | 6.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.33 |
EPS(TTM)3.51
EY3.14%
EPS(NY)4.39
Fwd EY3.93%
FCF(TTM)3.91
FCFY3.5%
OCF(TTM)4.37
OCFY3.91%
SpS38.35
BVpS18.36
TBVpS-1.21
PEG (NY)1.48
PEG (5Y)1.86
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 | 4.27 |
F-Score5
WACC10.53%
ROIC/WACC0.97
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 Y21.5%
EPS Next 2Y18.06%
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 Year66.9%
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%