STANTEC INC (STN) Stock Fundamental Analysis
USA - NYSE:STN - CA85472N1096 - Common Stock
99.16 USD
-6.75 (-6.37%)
99.16 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to STN. STN was compared to 55 industry peers in the Construction & Engineering industry. STN scores excellent on profitability, but there are some minor concerns on its financial health. STN has a correct valuation and a medium growth rate.
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.
STN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STN (6.28%) is better than 69.09% of its industry peers.
STN has a Return On Equity of 14.83%. This is in the better half of the industry: STN outperforms 61.82% of its industry peers.
STN has a Return On Invested Capital of 10.25%. This is in the better half of the industry: STN outperforms 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 16.87%.
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
STN has a better Profit Margin (7.10%) than 76.36% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
The Operating Margin of STN (10.71%) is better than 76.36% of its industry peers.
In the last couple of years the Operating Margin of STN has grown nicely.
STN's Gross Margin of 54.44% is amongst the best of the industry. STN outperforms 96.36% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STN is still creating some value.
STN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for STN has been increased compared to 5 years ago.
The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
STN has an Altman-Z score of 4.11. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN's Altman-Z score of 4.11 is fine compared to the rest of the industry. STN outperforms 65.45% 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.
With a decent Debt to FCF ratio value of 3.26, STN is doing good in the industry, outperforming 67.27% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that STN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, STN perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.11
WACC9.21%
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.
STN has a Current ratio of 1.29. This is comparable to the rest of the industry: STN outperforms 52.73% of its industry peers.
A Quick Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
STN has a Quick ratio (1.29) which is in line with 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.
STN shows a decrease in Revenue. In the last year, the revenue decreased by -9.42%.
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)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 16.04% yearly.
Based on estimates for the next years, STN will show a quite strong growth in Revenue. The Revenue will grow by 12.65% on average per year.
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.
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 28.17, STN can be considered very expensive at the moment.
61.82% of the companies in the same industry are more expensive than STN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, STN is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.43, the valuation of STN can be described as rather expensive.
63.64% of the companies in the same industry are more expensive than STN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of STN to the average of the S&P500 Index (34.59), we can say STN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.17 | ||
| Fwd PE | 22.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STN.
Based on the Price/Free Cash Flow ratio, STN is valued a bit cheaper than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.28 | ||
| EV/EBITDA | 19.17 |
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.
A more expensive valuation may be justified as STN's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)1.31
PEG (5Y)1.65
EPS Next 2Y18.28%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 1.76, STN pays a better dividend. On top of this STN pays more dividend than 90.91% of the companies listed in the same industry.
With a Dividend Yield of 0.61, STN pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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
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 2Y18.28%
EPS Next 3Y16.04%
99.16
-6.75 (-6.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner Change-1.86%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap11.31B
Revenue(TTM)6.15B
Net Income(TTM)436.70M
Analysts78.67
Price Target120.32 (21.34%)
Short Float %1.03%
Short Ratio6.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)1.2%
PT rev (3m)1.68%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.17 | ||
| Fwd PE | 22.43 | ||
| P/S | 2.58 | ||
| P/FCF | 25.28 | ||
| P/OCF | 22.64 | ||
| P/B | 5.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.17 |
EPS(TTM)3.52
EY3.55%
EPS(NY)4.42
Fwd EY4.46%
FCF(TTM)3.92
FCFY3.96%
OCF(TTM)4.38
OCFY4.42%
SpS38.47
BVpS18.41
TBVpS-1.22
PEG (NY)1.31
PEG (5Y)1.65
Graham Number38.19
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%
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-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 | 4.11 |
F-Score5
WACC9.21%
ROIC/WACC1.11
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 Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.42%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%6.92%
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
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%
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 28.17 and the Price/Book (PB) ratio is 5.38.
Is the dividend of STANTEC INC sustainable?
The dividend rating of STANTEC INC (STN) is 5 / 10 and the dividend payout ratio is 22.3%.