STANTEC INC (STN) Stock Fundamental Analysis
NYSE:STN - New York Stock Exchange, Inc. - CA85472N1096 - Common Stock - Currency: USD
Taking everything into account, STN scores 6 out of 10 in our fundamental rating. STN was compared to 49 industry peers in the Construction & Engineering industry. While STN has a great profitability rating, there are some minor concerns on its financial health. STN is not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
Each year in the past 5 years STN has been profitable.
Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
STN has a better Return On Assets (5.88%) than 76.09% of its industry peers.
With a decent Return On Equity value of 14.11%, STN is doing good in the industry, outperforming 73.91% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.42%, STN is doing good in the industry, outperforming 71.74% of the companies in the same industry.
STN had an Average Return On Invested Capital over the past 3 years of 7.08%. This is below the industry average of 11.92%.
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 amongst the best in the industry. STN outperforms 80.43% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
STN has a Operating Margin of 9.73%. This is amongst the best in the industry. STN outperforms 82.61% of its industry peers.
STN's Operating Margin has improved in the last couple of years.
STN's Gross Margin of 54.29% is amongst the best of the industry. STN outperforms 97.83% of its industry peers.
STN's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STN is creating some 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
STN has an Altman-Z score of 3.48. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.48, STN is in the better half of the industry, outperforming 63.04% of the companies in the same industry.
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.
STN's Debt to FCF ratio of 4.85 is in line compared to the rest of the industry. STN outperforms 56.52% of its industry peers.
STN has a Debt/Equity ratio of 0.71. This is a neutral value indicating STN is somewhat dependend on debt financing.
STN has a Debt to Equity ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.08
WACC8.7%
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.
STN has a Current ratio (1.39) which 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.
Looking at the Quick ratio, with a value of 1.39, STN is in line with its industry, outperforming 56.52% of the companies in the same 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.
Measured over the past years, STN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.12% on average per year.
Looking at the last year, STN shows a very strong growth in Revenue. The Revenue has grown by 41.30%.
The Revenue has been growing by 8.59% on average over the past years. This is quite good.
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
Based on estimates for the next years, STN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.44% 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 9.80% on average per year.
EPS Next Y18.52%
EPS Next 2Y15.7%
EPS Next 3Y14.44%
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
With a Price/Earnings ratio of 26.15, STN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, STN is valued a bit cheaper than 60.87% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. STN is around the same levels.
Based on the Price/Forward Earnings ratio of 21.96, the valuation of STN can be described as rather expensive.
STN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. STN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 21.96 |
4.2 Price Multiples
STN's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 25.02 | ||
| EV/EBITDA | 15.21 |
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 14.44% in the coming years.
PEG (NY)1.41
PEG (5Y)1.53
EPS Next 2Y15.7%
EPS Next 3Y14.44%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, 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 1.77. STN pays more dividend than 91.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
On average, the dividend of STN grows each year by 6.83%, which is quite nice.
STN has been paying a dividend for at least 10 years, so it has 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 2Y15.7%
EPS Next 3Y14.44%
76.11
-0.73 (-0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners87.13%
Inst Owner Change22.38%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap8.68B
Analysts77.33
Price Target94.01 (23.52%)
Short Float %0.6%
Short Ratio5.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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)-0.41%
PT rev (3m)-0.56%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-0.29%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 21.96 | ||
| P/S | 1.82 | ||
| P/FCF | 25.02 | ||
| P/OCF | 20.09 | ||
| P/B | 4.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.21 |
EPS(TTM)2.91
EY3.82%
EPS(NY)3.47
Fwd EY4.55%
FCF(TTM)3.04
FCFY4%
OCF(TTM)3.79
OCFY4.98%
SpS41.9
BVpS18.28
TBVpS-2.68
PEG (NY)1.41
PEG (5Y)1.53
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 | 3.48 |
F-Score7
WACC8.7%
ROIC/WACC1.08
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 Y18.52%
EPS Next 2Y15.7%
EPS Next 3Y14.44%
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%