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STANTEC INC (STN) Stock Fundamental Analysis

NYSE:STN - New York Stock Exchange, Inc. - CA85472N1096 - Common Stock - Currency: USD

110.43  +0.03 (+0.03%)

After market: 110.43 0 (0%)

Fundamental Rating

6

Overall STN gets a fundamental rating of 6 out of 10. We evaluated STN against 52 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 valued quite expensively, but it does show have an excellent growth rating. These ratings could make STN a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

7

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.
STN had positive earnings in each of the past 5 years.
In the past 5 years STN always reported a positive cash flow from operatings.
STN Yearly Net Income VS EBIT VS OCF VS FCFSTN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

1.2 Ratios

The Return On Assets of STN (6.34%) is better than 75.00% of its industry peers.
STN has a Return On Equity of 14.97%. This is in the better half of the industry: STN outperforms 71.15% of its industry peers.
STN's Return On Invested Capital of 11.01% is fine compared to the rest of the industry. STN outperforms 76.92% of its industry peers.
STN had an Average Return On Invested Capital over the past 3 years of 8.26%. This is significantly below the industry average of 16.67%.
The last Return On Invested Capital (11.01%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.34%
ROE 14.97%
ROIC 11.01%
ROA(3y)5.02%
ROA(5y)4.56%
ROE(3y)12%
ROE(5y)10.98%
ROIC(3y)8.26%
ROIC(5y)7.69%
STN Yearly ROA, ROE, ROICSTN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

STN has a better Profit Margin (6.09%) than 73.08% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.78%, STN is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Operating Margin of STN has grown nicely.
With an excellent Gross Margin value of 54.42%, STN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of STN has remained more or less at the same level.
Industry RankSector Rank
OM 9.78%
PM (TTM) 6.09%
GM 54.42%
OM growth 3Y4.91%
OM growth 5Y1.76%
PM growth 3Y3.74%
PM growth 5Y3.3%
GM growth 3Y0.35%
GM growth 5Y0.13%
STN Yearly Profit, Operating, Gross MarginsSTN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

5

2. Health

2.1 Basic Checks

STN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, STN has about the same amount of shares outstanding.
STN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STN has been reduced compared to a year ago.
STN Yearly Shares OutstandingSTN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
STN Yearly Total Debt VS Total AssetsSTN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

STN has an Altman-Z score of 4.33. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.33, STN is doing good in the industry, outperforming 69.23% of the companies in the same industry.
STN has a debt to FCF ratio of 4.05. This is a neutral value as STN would need 4.05 years to pay back of all of its debts.
STN's Debt to FCF ratio of 4.05 is fine compared to the rest of the industry. STN outperforms 65.38% of its industry peers.
STN has a Debt/Equity ratio of 0.60. This is a neutral value indicating STN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, STN is in line with its industry, outperforming 55.77% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 4.05
Altman-Z 4.33
ROIC/WACC1.21
WACC9.13%
STN Yearly LT Debt VS Equity VS FCFSTN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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 (1.29) which is in line with its industry peers.
STN has a Quick 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.
With a decent Quick ratio value of 1.29, STN is doing good in the industry, outperforming 61.54% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.29
STN Yearly Current Assets VS Current LiabilitesSTN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 21.82% over the past year.
STN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.12% yearly.
STN shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.47%.
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)21.82%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%28.89%
Revenue 1Y (TTM)42.47%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%13.35%

3.2 Future

The Earnings Per Share is expected to grow by 14.48% on average over the next years. This is quite good.
Based on estimates for the next years, STN will show a quite strong growth in Revenue. The Revenue will grow by 9.08% on average per year.
EPS Next Y18.97%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
EPS Next 5YN/A
Revenue Next Year11.73%
Revenue Next 2Y9.76%
Revenue Next 3Y9.08%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
STN Yearly Revenue VS EstimatesSTN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
STN Yearly EPS VS EstimatesSTN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 32.29, which means the current valuation is very expensive for STN.
STN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, STN is valued at the same level.
STN is valuated quite expensively with a Price/Forward Earnings ratio of 25.45.
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 21.76. STN is around the same levels.
Industry RankSector Rank
PE 32.29
Fwd PE 25.45
STN Price Earnings VS Forward Price EarningsSTN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 34.24
EV/EBITDA 18.55
STN Per share dataSTN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

STN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of STN may justify a higher PE ratio.
STN's earnings are expected to grow with 14.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)1.89
EPS Next 2Y15.86%
EPS Next 3Y14.48%

5

5. Dividend

5.1 Amount

STN has a yearly dividend return of 0.60%, which is pretty low.
Compared to an average industry Dividend Yield of 1.62, STN pays a better dividend. On top of this STN pays more dividend than 88.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, STN's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.6%

5.2 History

On average, the dividend of STN grows each year by 7.51%, which is quite nice.
STN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.51%
Div Incr Years0
Div Non Decr Years0
STN Yearly Dividends per shareSTN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

STN pays out 21.32% of its income as dividend. This is a sustainable payout ratio.
The dividend of STN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.32%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
STN Yearly Income VS Free CF VS DividendSTN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
STN Dividend Payout.STN Dividend Payout, showing the Payout Ratio.STN Dividend Payout.PayoutRetained Earnings

STANTEC INC

NYSE:STN (7/11/2025, 8:04:01 PM)

After market: 110.43 0 (0%)

110.43

+0.03 (+0.03%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)05-14 2025-05-14/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners76.18%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap12.60B
Analysts78.67
Price Target112.54 (1.91%)
Short Float %0.61%
Short Ratio3.75
Dividend
Industry RankSector Rank
Dividend Yield 0.6%
Yearly Dividend0.6
Dividend Growth(5Y)7.51%
DP21.32%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-30 2025-06-30 (0.225)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.73%
Min EPS beat(2)3.04%
Max EPS beat(2)10.41%
EPS beat(4)3
Avg EPS beat(4)4.05%
Min EPS beat(4)-0.77%
Max EPS beat(4)10.41%
EPS beat(8)6
Avg EPS beat(8)3.88%
EPS beat(12)9
Avg EPS beat(12)4.18%
EPS beat(16)11
Avg EPS beat(16)3.59%
Revenue beat(2)1
Avg Revenue beat(2)0.74%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)2.67%
Revenue beat(4)1
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)2.67%
Revenue beat(8)5
Avg Revenue beat(8)1.47%
Revenue beat(12)9
Avg Revenue beat(12)1.36%
Revenue beat(16)9
Avg Revenue beat(16)-0.13%
PT rev (1m)0.09%
PT rev (3m)12.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
Industry RankSector Rank
PE 32.29
Fwd PE 25.45
P/S 2.38
P/FCF 34.24
P/OCF 28.62
P/B 5.86
P/tB N/A
EV/EBITDA 18.55
EPS(TTM)3.42
EY3.1%
EPS(NY)4.34
Fwd EY3.93%
FCF(TTM)3.23
FCFY2.92%
OCF(TTM)3.86
OCFY3.49%
SpS46.3
BVpS18.84
TBVpS-1.24
PEG (NY)1.7
PEG (5Y)1.89
Profitability
Industry RankSector Rank
ROA 6.34%
ROE 14.97%
ROCE 14.23%
ROIC 11.01%
ROICexc 11.54%
ROICexgc 33.81%
OM 9.78%
PM (TTM) 6.09%
GM 54.42%
FCFM 6.97%
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%
ROICexcg growth 3Y14.28%
ROICexcg 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-Score7
Asset Turnover1.04
Health
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 4.05
Debt/EBITDA 1.71
Cap/Depr 31.07%
Cap/Sales 1.37%
Interest Coverage 7.33
Cash Conversion 58.75%
Profit Quality 114.33%
Current Ratio 1.29
Quick Ratio 1.29
Altman-Z 4.33
F-Score7
WACC9.13%
ROIC/WACC1.21
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)21.82%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%28.89%
EPS Next Y18.97%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
EPS Next 5YN/A
Revenue 1Y (TTM)42.47%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%13.35%
Revenue Next Year11.73%
Revenue Next 2Y9.76%
Revenue Next 3Y9.08%
Revenue Next 5YN/A
EBIT growth 1Y38.31%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year66.46%
EBIT Next 3Y26.93%
EBIT Next 5YN/A
FCF growth 1Y20.2%
FCF growth 3Y12.8%
FCF growth 5Y4.96%
OCF growth 1Y15.98%
OCF growth 3Y14.96%
OCF growth 5Y5.91%