STANTEC INC (STN)
CA85472N1096 - Common Stock
We assign a fundamental rating of 6 out of 10 to STN. STN was compared to 44 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 priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make STN a good candidate for growth investing.
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.
Each year in the past 5 years STN has been profitable.
STN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STN has a better Return On Assets (6.87%) than 81.40% of its industry peers.
Looking at the Return On Equity, with a value of 15.14%, STN belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
STN has a better Return On Invested Capital (11.41%) than 81.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STN is below the industry average of 9.74%.
The 3 year average ROIC (7.08%) for STN is below the current ROIC(11.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 15.14% | ||
| ROIC | 11.41% |
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 5.96%. This is in the better half of the industry: STN outperforms 76.74% of its industry peers.
In the last couple of years the Profit Margin of STN has grown nicely.
STN has a Operating Margin of 9.52%. This is in the better half of the industry: STN outperforms 76.74% of its industry peers.
In the last couple of years the Operating Margin of STN has grown nicely.
The Gross Margin of STN (54.20%) is better than 97.67% of its industry peers.
STN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.52% | ||
| PM (TTM) | 5.96% | ||
| GM | 54.2% |
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 just above the Cost of Capital (WACC), so STN is still creating some value.
Compared to 1 year ago, STN has more shares outstanding
The number of shares outstanding for STN has been increased compared to 5 years ago.
Compared to 1 year ago, STN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.44 indicates that STN is not in any danger for bankruptcy at the moment.
STN's Altman-Z score of 4.44 is fine compared to the rest of the industry. STN outperforms 67.44% of its industry peers.
The Debt to FCF ratio of STN is 3.90, which is a good value as it means it would take STN, 3.90 years of fcf income to pay off all of its debts.
STN has a better Debt to FCF ratio (3.90) than 60.47% of its industry peers.
STN has a Debt/Equity ratio of 0.54. This is a neutral value indicating STN is somewhat dependend on debt financing.
STN's Debt to Equity ratio of 0.54 is in line compared to the rest of the industry. STN outperforms 51.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.9 | ||
| Altman-Z | 4.44 |
ROIC/WACC1.22
WACC9.36%
2.3 Liquidity
STN has a Current Ratio of 1.41. 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 (1.41) which is in line with its industry peers.
STN has a Quick Ratio of 1.41. 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 Quick ratio value of 1.41, STN perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
STN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.50%, which is quite good.
STN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.12% yearly.
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
Based on estimates for the next years, STN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.84% on average per year.
STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.98% yearly.
EPS Next Y16.37%
EPS Next 2Y16.39%
EPS Next 3Y14.84%
EPS Next 5YN/A
Revenue Next Year15.29%
Revenue Next 2Y12.28%
Revenue Next 3Y9.98%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.04, the valuation of STN can be described as expensive.
STN's Price/Earnings ratio is a bit cheaper when compared to the industry. STN is cheaper than 62.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.29. STN is around the same levels.
Based on the Price/Forward Earnings ratio of 24.12, the valuation of STN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STN is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 24.01. STN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 24.12 |
4.2 Price Multiples
74.42% of the companies in the same industry are more expensive than STN, based on the Enterprise Value to EBITDA ratio.
STN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.91 | ||
| EV/EBITDA | 15.21 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
STN's earnings are expected to grow with 14.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.77
PEG (5Y)1.7
EPS Next 2Y16.39%
EPS Next 3Y14.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, STN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.63, STN pays a better dividend. On top of this STN pays more dividend than 90.70% of the companies listed in the same industry.
With a Dividend Yield of 0.70, STN pays less dividend than the S&P500 average, which is at 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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
21.97% 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.
DP21.97%
EPS Next 2Y16.39%
EPS Next 3Y14.84%
STANTEC INC
NYSE:STN (11/22/2024, 8:06:45 PM)
After market: 85.97 0 (0%)85.97
-0.06 (-0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 24.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.77
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 15.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.52% | ||
| PM (TTM) | 5.96% | ||
| GM | 54.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.5%
EPS 3Y18.17%
EPS 5Y
EPS Q2Q%
EPS Next Y16.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)41.3%
Revenue growth 3Y11.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y