STANTEC INC (STN) Stock Fundamental Analysis
NYSE:STN - New York Stock Exchange, Inc. - CA85472N1096 - Common Stock
STN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 45 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 not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
STN had positive earnings in the past year.
STN had a positive operating cash flow in the past year.
In the past 5 years STN has always been profitable.
Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STN (5.88%) is better than 77.27% of its industry peers.
STN has a Return On Equity of 14.11%. This is in the better half of the industry: STN outperforms 75.00% of its industry peers.
STN's Return On Invested Capital of 9.42% is fine compared to the rest of the industry. STN outperforms 72.73% of its industry peers.
STN had an Average Return On Invested Capital over the past 3 years of 7.08%. This is below the industry average of 11.60%.
The 3 year average ROIC (7.08%) for STN is below the current ROIC(9.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 14.11% | ||
| ROIC | 9.42% |
ROA(3y)4.55%
ROA(5y)4.36%
ROE(3y)10.95%
ROE(5y)10.42%
ROIC(3y)7.08%
ROIC(5y)7.21%
1.3 Margins
STN has a Profit Margin of 6.15%. This is in the better half of the industry: STN outperforms 79.55% of its industry peers.
In the last couple of years the Profit Margin of STN has grown nicely.
STN's Operating Margin of 9.73% is amongst the best of the industry. STN outperforms 81.82% of its industry peers.
In the last couple of years the Operating Margin of STN has grown nicely.
STN has a Gross Margin of 54.29%. This is amongst the best in the industry. STN outperforms 97.73% 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 | 9.73% | ||
| PM (TTM) | 6.15% | ||
| GM | 54.29% |
OM growth 3Y2.12%
OM growth 5Y4.84%
PM growth 3Y12.08%
PM growth 5Y35.85%
GM growth 3Y1.12%
GM growth 5Y0.03%
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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, STN has more shares outstanding
The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.52 indicates that STN is not in any danger for bankruptcy at the moment.
STN's Altman-Z score of 3.52 is fine compared to the rest of the industry. STN outperforms 63.64% of its industry peers.
STN has a debt to FCF ratio of 4.85. This is a neutral value as STN would need 4.85 years to pay back of all of its debts.
The Debt to FCF ratio of STN (4.85) is comparable to the rest of the industry.
STN has a Debt/Equity ratio of 0.71. This is a neutral value indicating STN is somewhat dependend on debt financing.
The Debt to Equity ratio of STN (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 3.52 |
ROIC/WACC0.96
WACC9.82%
2.3 Liquidity
STN has a Current Ratio of 1.39. This is a normal value and indicates that STN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of STN (1.39) is comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that STN should not have too much problems paying its short term obligations.
The Quick ratio of STN (1.39) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.50% over the past year.
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 very strong growth in Revenue. The Revenue has grown by 41.30%.
STN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.59% yearly.
EPS 1Y (TTM)12.5%
EPS 3Y18.17%
EPS 5Y17.12%
EPS Q2Q%14.04%
Revenue 1Y (TTM)41.3%
Revenue growth 3Y11.2%
Revenue growth 5Y8.59%
Sales Q2Q%15.8%
3.2 Future
The Earnings Per Share is expected to grow by 14.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.80% on average over the next years. This is quite good.
EPS Next Y18.37%
EPS Next 2Y16.1%
EPS Next 3Y14.41%
EPS Next 5YN/A
Revenue Next Year15.16%
Revenue Next 2Y12.07%
Revenue Next 3Y9.8%
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
A Price/Earnings ratio of 27.35 indicates a quite expensive valuation of STN.
65.91% 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 28.29, STN is valued at the same level.
STN is valuated rather expensively with a Price/Forward Earnings ratio of 22.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STN is on the same level as its industry peers.
STN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.35 | ||
| Fwd PE | 22.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 63.64% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.17 | ||
| EV/EBITDA | 15.55 |
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 an outstanding 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 14.41% in the coming years.
PEG (NY)1.49
PEG (5Y)1.6
EPS Next 2Y16.1%
EPS Next 3Y14.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, 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 0.62. STN pays more dividend than 93.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of STN is nicely growing with an annual growth rate of 6.83%!
STN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of STN decreased recently.
Dividend Growth(5Y)6.83%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
21.39% of the earnings are spent on dividend by STN. This is a low number and sustainable payout ratio.
The dividend of STN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.39%
EPS Next 2Y16.1%
EPS Next 3Y14.41%
STANTEC INC
NYSE:STN (1/21/2025, 8:04:01 PM)
After market: 78.22 0 (0%)78.22
+0.76 (+0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners73.23%
Inst Owner Change0.09%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap8.92B
Analysts77.33
Price Target94.4 (20.69%)
Short Float %0.52%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.76
Dividend Growth(5Y)6.83%
DP21.39%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.37%
Min EPS beat(2)-0.77%
Max EPS beat(2)3.51%
EPS beat(4)2
Avg EPS beat(4)3.32%
Min EPS beat(4)-5.6%
Max EPS beat(4)16.12%
EPS beat(8)5
Avg EPS beat(8)3.86%
EPS beat(12)8
Avg EPS beat(12)3.45%
EPS beat(16)11
Avg EPS beat(16)5.75%
Revenue beat(2)0
Avg Revenue beat(2)-0.34%
Min Revenue beat(2)-0.43%
Max Revenue beat(2)-0.25%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-0.43%
Max Revenue beat(4)2.55%
Revenue beat(8)6
Avg Revenue beat(8)1.54%
Revenue beat(12)8
Avg Revenue beat(12)0.66%
Revenue beat(16)8
Avg Revenue beat(16)-0.64%
PT rev (1m)-1.03%
PT rev (3m)-0.8%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)0%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.35 | ||
| Fwd PE | 22.81 | ||
| P/S | 1.9 | ||
| P/FCF | 26.17 | ||
| P/OCF | 21.02 | ||
| P/B | 4.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.55 |
EPS(TTM)2.86
EY3.66%
EPS(NY)3.43
Fwd EY4.38%
FCF(TTM)2.99
FCFY3.82%
OCF(TTM)3.72
OCFY4.76%
SpS41.16
BVpS17.95
TBVpS-2.63
PEG (NY)1.49
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 14.11% | ||
| ROCE | 12.35% | ||
| ROIC | 9.42% | ||
| ROICexc | 9.82% | ||
| ROICexgc | 28.71% | ||
| OM | 9.73% | ||
| PM (TTM) | 6.15% | ||
| GM | 54.29% | ||
| FCFM | 7.26% |
ROA(3y)4.55%
ROA(5y)4.36%
ROE(3y)10.95%
ROE(5y)10.42%
ROIC(3y)7.08%
ROIC(5y)7.21%
ROICexc(3y)7.5%
ROICexc(5y)7.7%
ROICexgc(3y)21.26%
ROICexgc(5y)20.36%
ROCE(3y)9.29%
ROCE(5y)9.45%
ROICexcg growth 3Y7.61%
ROICexcg growth 5Y7.2%
ROICexc growth 3Y3.37%
ROICexc growth 5Y6.55%
OM growth 3Y2.12%
OM growth 5Y4.84%
PM growth 3Y12.08%
PM growth 5Y35.85%
GM growth 3Y1.12%
GM growth 5Y0.03%
F-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.85 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 40.48% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 7.47 | ||
| Cash Conversion | 64% | ||
| Profit Quality | 117.99% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 3.52 |
F-Score7
WACC9.82%
ROIC/WACC0.96
Cap/Depr(3y)26.76%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.59%
Cap/Sales(5y)1.43%
Profit Quality(3y)134.85%
Profit Quality(5y)188.56%
High Growth Momentum
Growth
EPS 1Y (TTM)12.5%
EPS 3Y18.17%
EPS 5Y17.12%
EPS Q2Q%14.04%
EPS Next Y18.37%
EPS Next 2Y16.1%
EPS Next 3Y14.41%
EPS Next 5YN/A
Revenue 1Y (TTM)41.3%
Revenue growth 3Y11.2%
Revenue growth 5Y8.59%
Sales Q2Q%15.8%
Revenue Next Year15.16%
Revenue Next 2Y12.07%
Revenue Next 3Y9.8%
Revenue Next 5YN/A
EBIT growth 1Y42.02%
EBIT growth 3Y13.55%
EBIT growth 5Y13.85%
EBIT Next Year65.84%
EBIT Next 3Y25.69%
EBIT Next 5YN/A
FCF growth 1Y135.98%
FCF growth 3Y-8.12%
FCF growth 5Y56.17%
OCF growth 1Y132.04%
OCF growth 3Y-3.38%
OCF growth 5Y25.84%