STANTEC INC (STN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STN - CA85472N1096 - Common Stock
94.2 USD
+1.01 (+1.08%)
94.3316 USD
+0.13 (+0.14%)
Overall STN gets a fundamental rating of 6 out of 10. We evaluated STN against 54 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 growing strongly while it is still valued neutral. This is a good combination! This makes STN very considerable for growth 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.
Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
STN has a Return On Assets of 5.95%. This is in the better half of the industry: STN outperforms 62.96% of its industry peers.
The Return On Equity of STN (14.97%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 9.44%, STN is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STN is significantly below the industry average of 18.23%.
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 74.07% of its industry peers.
In the last couple of years the Profit Margin of STN has grown nicely.
STN's Operating Margin of 11.23% is fine compared to the rest 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.
The Gross Margin of STN (54.46%) is better than 96.30% 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.
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
Compared to 1 year ago, STN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.25 indicates that STN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.25, STN is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
The Debt to FCF ratio of STN is 3.36, which is a good value as it means it would take STN, 3.36 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.36, STN is doing good in the industry, outperforming 68.52% of the companies in the same industry.
STN has a Debt/Equity ratio of 0.72. This is a neutral value indicating STN is somewhat dependend on debt financing.
STN's Debt to Equity ratio of 0.72 is in line compared to the rest of the industry. STN outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.01
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
STN's Current ratio of 1.27 is in line compared to the rest of the industry. STN outperforms 48.15% 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.
STN's Quick ratio of 1.27 is in line compared to the rest of the industry. STN outperforms 48.15% of its industry peers.
| 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.
Measured over the past years, STN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.12% on average per year.
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 15.25% yearly.
Based on estimates for the next years, STN will show a quite strong growth in Revenue. The Revenue will grow by 9.25% on average per year.
EPS Next Y20.23%
EPS Next 2Y17.37%
EPS Next 3Y15.25%
EPS Next 5YN/A
Revenue Next Year12.04%
Revenue Next 2Y11.03%
Revenue Next 3Y9.25%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.19, 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 70.37% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.38. STN is around the same levels.
Based on the Price/Forward Earnings ratio of 21.29, the valuation of STN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, STN is valued a bit cheaper than 75.93% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.83. STN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 21.29 |
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 75.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.41 | ||
| EV/EBITDA | 16.43 |
4.3 Compensation for Growth
STN's 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 15.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)1.47
EPS Next 2Y17.37%
EPS Next 3Y15.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, 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 0.41. STN pays more dividend than 92.59% of the companies in the same industry.
With a Dividend Yield of 0.70, STN pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 2Y17.37%
EPS Next 3Y15.25%
94.2
+1.01 (+1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner Change-1.83%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap10.75B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target122.99 (30.56%)
Short Float %0.95%
Short Ratio5.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend0.6
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)2.22%
PT rev (3m)2.74%
EPS NQ rev (1m)-5.61%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)-1.08%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 21.29 | ||
| P/S | 2.34 | ||
| P/FCF | 18.41 | ||
| P/OCF | 17.28 | ||
| P/B | 4.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.43 |
EPS(TTM)3.74
EY3.97%
EPS(NY)4.43
Fwd EY4.7%
FCF(TTM)5.12
FCFY5.43%
OCF(TTM)5.45
OCFY5.79%
SpS40.26
BVpS20.53
TBVpS-3.95
PEG (NY)1.25
PEG (5Y)1.47
Graham Number41.57
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 | 3.25 |
F-Score6
WACC9.36%
ROIC/WACC1.01
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 Y20.23%
EPS Next 2Y17.37%
EPS Next 3Y15.25%
EPS Next 5YN/A
Revenue 1Y (TTM)12.49%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%11.84%
Revenue Next Year12.04%
Revenue Next 2Y11.03%
Revenue Next 3Y9.25%
Revenue Next 5YN/A
EBIT growth 1Y34.51%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year67.78%
EBIT Next 3Y26.16%
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 4 / 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 25.19 and the Price/Book (PB) ratio is 4.59.
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%.