STANTEC INC (STN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STN - CA85472N1096 - Common Stock
96.56 USD
+0.32 (+0.33%)
96.33 USD
-0.23 (-0.24%)
Overall STN gets a fundamental rating of 6 out of 10. We evaluated STN against 55 industry peers in the Construction & Engineering industry. STN has an excellent profitability rating, but there are some minor concerns on its financial health. STN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes STN very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year STN was profitable.
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
With a decent Return On Assets value of 5.95%, STN is doing good in the industry, outperforming 65.45% of the companies in the same industry.
STN's Return On Equity of 14.97% is fine compared to the rest of the industry. STN outperforms 61.82% of its industry peers.
STN has a better Return On Invested Capital (9.44%) than 69.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STN is significantly below the industry average of 17.30%.
The last Return On Invested Capital (9.44%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
| 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
STN has a better Profit Margin (7.63%) than 76.36% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
STN's Operating Margin of 11.23% is fine compared to the rest of the industry. STN outperforms 80.00% of its industry peers.
STN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 54.46%, STN belongs to the top of the industry, outperforming 96.36% 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 | 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
STN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, STN has about the same amount of shares outstanding.
STN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, STN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.34 indicates that STN is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.34, STN perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
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 fine compared to the rest of the industry. STN outperforms 70.91% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that STN is somewhat dependend on debt financing.
STN has a Debt to Equity ratio of 0.72. This is comparable to the rest of the industry: STN outperforms 50.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.99
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, STN is in line with its industry, outperforming 52.73% of the companies in the same industry.
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.
STN has a Quick ratio (1.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
STN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.64%, which is quite impressive.
The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
The Revenue has grown by 12.49% in the past year. This is quite good.
STN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.59% yearly.
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.
STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.65% yearly.
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
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.
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
Based on the Price/Earnings ratio of 26.31, the valuation of STN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 70.91% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. STN is around the same levels.
A Price/Forward Earnings ratio of 21.88 indicates a rather expensive valuation of STN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 70.91% of the companies listed in the same industry.
STN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.31 | ||
| Fwd PE | 21.88 |
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 61.82% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.22 | ||
| EV/EBITDA | 17.17 |
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 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)1.54
EPS Next 2Y18.28%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, STN is not a good candidate for dividend investing.
STN's Dividend Yield is rather good when compared to the industry average which is at 1.73. STN pays more dividend than 92.73% of the companies in the same industry.
With a Dividend Yield of 0.68, STN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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%
96.56
+0.32 (+0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner Change-2.07%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap11.01B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target121.45 (25.78%)
Short Float %0.82%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.59
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)2.14%
PT rev (3m)1.8%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.31 | ||
| Fwd PE | 21.88 | ||
| P/S | 2.44 | ||
| P/FCF | 19.22 | ||
| P/OCF | 18.04 | ||
| P/B | 4.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.17 |
EPS(TTM)3.67
EY3.8%
EPS(NY)4.41
Fwd EY4.57%
FCF(TTM)5.02
FCFY5.2%
OCF(TTM)5.35
OCFY5.54%
SpS39.53
BVpS20.16
TBVpS-3.88
PEG (NY)1.22
PEG (5Y)1.54
Graham Number40.8
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 | 3.34 |
F-Score6
WACC9.52%
ROIC/WACC0.99
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 FAQ
Can you provide the ChartMill fundamental rating for STANTEC INC?
ChartMill assigns a fundamental rating of 6 / 10 to STN.
What is the valuation status for STN stock?
ChartMill assigns a valuation rating of 5 / 10 to STANTEC INC (STN). This can be considered as Fairly Valued.
Can you provide the profitability details for STANTEC INC?
STANTEC INC (STN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of STANTEC INC (STN) stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN) is 26.31 and the Price/Book (PB) ratio is 4.79.
Is the dividend of STANTEC INC sustainable?
The dividend rating of STANTEC INC (STN) is 5 / 10 and the dividend payout ratio is 20.52%.