STANTEC INC (STN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STN - CA85472N1096 - Common Stock
100.53 USD
-0.39 (-0.39%)
100.53 USD
0 (0%)
STN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. STN scores excellent on profitability, 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! With these ratings, STN could be worth investigating further 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.
- In the past 5 years STN has always 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 5.95% is fine compared to the rest of the industry. STN outperforms 63.64% of its industry peers.
- STN's Return On Equity of 14.97% is in line compared to the rest of the industry. STN outperforms 60.00% of its industry peers.
- STN's Return On Invested Capital of 9.44% is fine compared to the rest of the industry. STN outperforms 67.27% of its industry peers.
- STN had an Average Return On Invested Capital over the past 3 years of 8.26%. This is significantly below the industry average of 15.97%.
- 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
- With a decent Profit Margin value of 7.63%, STN is doing good in the industry, outperforming 74.55% of the companies in the same industry.
- In the last couple of years the Profit Margin of STN has grown nicely.
- With a decent Operating Margin value of 11.23%, STN is doing good in the industry, outperforming 76.36% of the companies in the same industry.
- 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
- 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.
- The number of shares outstanding for STN has been increased compared to 5 years ago.
- Compared to 1 year ago, STN has an improved debt to assets ratio.
2.2 Solvency
- STN has an Altman-Z score of 3.36. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
- STN has a Altman-Z score (3.36) which is comparable to the rest of the 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 72.73% of the companies in the same industry.
- A Debt/Equity ratio of 0.72 indicates that 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 50.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.99
WACC9.51%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.27, STN perfoms like the industry average, outperforming 50.91% 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.
- With a Quick ratio value of 1.27, STN perfoms like the industry average, outperforming 50.91% of the companies in the same 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.
- 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 grown by 12.49% in the past year. This is quite good.
- The Revenue has been growing by 9.59% on average over the past years. This is quite good.
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
- Based on estimates for the next years, STN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.33% on average per year.
- STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.23% yearly.
EPS Next Y20.33%
EPS Next 2Y17.31%
EPS Next 3Y15.33%
EPS Next 5YN/A
Revenue Next Year12%
Revenue Next 2Y11%
Revenue Next 3Y9.23%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.46, which means the current valuation is very expensive for STN.
- 76.36% 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 (28.60), we can say STN is valued inline with the index average.
- The Price/Forward Earnings ratio is 22.37, which indicates a rather expensive current valuation of STN.
- Based on the Price/Forward Earnings ratio, STN is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. STN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 22.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STN is valued a bit cheaper than 67.27% 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 78.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.33 | ||
| EV/EBITDA | 17.3 |
4.3 Compensation for Growth
- STN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- STN has a very decent profitability rating, which may justify a higher PE ratio.
- STN's earnings are expected to grow with 15.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)1.55
EPS Next 2Y17.31%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.64%, STN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.44, STN pays a better dividend. On top of this STN pays more dividend than 92.73% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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
- STN pays out 20.52% of its income as dividend. This is a sustainable payout ratio.
- The dividend of STN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.52%
EPS Next 2Y17.31%
EPS Next 3Y15.33%
STANTEC INC / STN FAQ
Can you provide the ChartMill fundamental rating for STANTEC INC?
ChartMill assigns a fundamental rating of 6 / 10 to STN.
Can you provide the valuation status for STANTEC INC?
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.
Can you provide the PE and PB ratios for STN stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN) is 26.46 and the Price/Book (PB) ratio is 4.82.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN) is 5 / 10.