STANTEC INC (STN) Stock Fundamental Analysis
USA - NYSE:STN - CA85472N1096 - Common Stock
110.22 USD
-0.28 (-0.25%)
We assign a fundamental rating of 6 out of 10 to STN. STN was compared to 52 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 is quite expensive at the moment. It does show a decent growth rate.
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
The Return On Assets of STN (6.28%) is better than 71.15% of its industry peers.
STN's Return On Equity of 14.83% is fine compared to the rest of the industry. STN outperforms 65.38% of its industry peers.
The Return On Invested Capital of STN (10.25%) is better than 69.23% 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 17.22%.
The 3 year average ROIC (8.26%) for STN is below the current ROIC(10.25%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 7.10%, STN is doing good in the industry, outperforming 76.92% 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 10.71%, STN is doing good in the industry, outperforming 75.00% 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 54.44%, STN belongs to the top of the industry, outperforming 98.08% 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
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.
STN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.18 indicates that STN is not in any danger for bankruptcy at the moment.
The Altman-Z score of STN (4.18) is better than 69.23% 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 is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
STN has a Debt/Equity ratio of 0.60. This is a neutral value indicating STN is somewhat dependend on debt financing.
The Debt to Equity ratio of STN (0.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.1
WACC9.29%
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.
With a Current ratio value of 1.29, STN perfoms like the industry average, outperforming 53.85% 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 of 1.29. This is comparable to the rest of the industry: STN outperforms 55.77% 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.
The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
Looking at the last year, STN shows a decrease in Revenue. The Revenue has decreased by -9.42% in the last year.
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)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.
STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.52% yearly.
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.
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
With a Price/Earnings ratio of 30.96, STN can be considered very expensive at the moment.
STN's Price/Earnings ratio is in line with the industry average.
STN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 24.70, which indicates a rather expensive current valuation of STN.
STN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, STN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.96 | ||
| Fwd PE | 24.7 |
4.2 Price Multiples
STN's Enterprise Value to EBITDA is on the same level as the industry average.
STN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.75 | ||
| EV/EBITDA | 19.7 |
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 a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STN's earnings are expected to grow with 15.68% in the coming years.
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 1.57, STN pays a better dividend. On top of this STN pays more dividend than 88.46% 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 2.38.
| 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
STN pays out 22.30% 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.
DP22.3%
EPS Next 2Y18.1%
EPS Next 3Y15.68%
NYSE:STN (9/15/2025, 10:44:19 AM)
110.22
-0.28 (-0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners76.18%
Inst Owner Change-2.4%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap12.57B
Analysts78.67
Price Target119.71 (8.61%)
Short Float %0.64%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.6
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)1.17%
PT rev (3m)6.46%
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 | 30.96 | ||
| Fwd PE | 24.7 | ||
| P/S | 2.83 | ||
| P/FCF | 27.75 | ||
| P/OCF | 24.85 | ||
| P/B | 5.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.7 |
EPS(TTM)3.56
EY3.23%
EPS(NY)4.46
Fwd EY4.05%
FCF(TTM)3.97
FCFY3.6%
OCF(TTM)4.44
OCFY4.02%
SpS38.95
BVpS18.64
TBVpS-1.23
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
WACC9.29%
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%