STANTEC INC (STN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STN - CA85472N1096 - Common Stock
94.36 USD
-0.98 (-1.03%)
94.36 USD
0 (0%)
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! These ratings would make STN suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year STN was profitable.
STN had a positive operating cash flow in the past year.
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
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.
With a Return On Equity value of 14.97%, STN perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.44%, STN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
STN had an Average Return On Invested Capital over the past 3 years of 8.26%. This is significantly below the industry average of 16.29%.
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.
STN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 11.23%, STN is doing good in the industry, outperforming 75.93% of the companies in the same industry.
In the last couple of years the Operating Margin of STN has grown nicely.
STN's Gross Margin of 54.46% is amongst the best of the industry. STN outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STN is destroying value.
STN has about the same amout of shares outstanding than it did 1 year ago.
STN has more shares outstanding than it did 5 years ago.
STN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.28 indicates that STN is not in any danger for bankruptcy at the moment.
STN has a Altman-Z score (3.28) which is comparable to the rest of the 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 70.37% of its industry peers.
STN has a Debt/Equity ratio of 0.72. This is a neutral value indicating STN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, STN is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.28 |
ROIC/WACC0.99
WACC9.53%
2.3 Liquidity
STN has a Current 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 Current ratio value of 1.27, STN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
STN has a Quick ratio (1.27) which is in line with 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.
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 quite strong growth in Revenue. The Revenue has grown by 12.49% 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)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 15.22% on average per year.
Based on estimates for the next years, STN will show a quite strong growth in Revenue. The Revenue will grow by 9.23% on average per year.
EPS Next Y20.18%
EPS Next 2Y17.33%
EPS Next 3Y15.22%
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
A Price/Earnings ratio of 25.03 indicates a quite expensive valuation of STN.
Compared to the rest of the industry, the Price/Earnings ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 72.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of STN to the average of the S&P500 Index (26.51), we can say STN is valued inline with the index average.
A Price/Forward Earnings ratio of 21.19 indicates a rather expensive valuation of STN.
75.93% of the companies in the same industry are more expensive than STN, based on the Price/Forward Earnings ratio.
STN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.03 | ||
| Fwd PE | 21.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, STN is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.32 | ||
| EV/EBITDA | 16.66 |
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.
STN's earnings are expected to grow with 15.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)1.46
EPS Next 2Y17.33%
EPS Next 3Y15.22%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.69%, which is pretty low.
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.
Compared to an average S&P500 Dividend Yield of 2.00, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of STN is nicely growing with an annual growth rate of 7.51%!
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
20.52% 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.
DP20.52%
EPS Next 2Y17.33%
EPS Next 3Y15.22%
94.36
-0.98 (-1.03%)
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 Cap10.76B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target124.65 (32.1%)
Short Float %1.08%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend0.6
Dividend Growth(5Y)7.51%
DP20.52%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)2.64%
PT rev (3m)4.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-1.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.03 | ||
| Fwd PE | 21.19 | ||
| P/S | 2.33 | ||
| P/FCF | 18.32 | ||
| P/OCF | 17.2 | ||
| P/B | 4.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.66 |
EPS(TTM)3.77
EY4%
EPS(NY)4.45
Fwd EY4.72%
FCF(TTM)5.15
FCFY5.46%
OCF(TTM)5.49
OCFY5.82%
SpS40.54
BVpS20.67
TBVpS-3.98
PEG (NY)1.24
PEG (5Y)1.46
Graham Number41.87
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 | 3.28 |
F-Score6
WACC9.53%
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 Y20.18%
EPS Next 2Y17.33%
EPS Next 3Y15.22%
EPS Next 5YN/A
Revenue 1Y (TTM)12.49%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%11.84%
Revenue Next Year12%
Revenue Next 2Y11%
Revenue Next 3Y9.23%
Revenue Next 5YN/A
EBIT growth 1Y34.51%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year67.78%
EBIT Next 3Y26.13%
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.
Can you provide the valuation status for STANTEC INC?
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.
Can you provide the PE and PB ratios for STN stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN) is 25.03 and the Price/Book (PB) ratio is 4.56.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN) is 5 / 10.