STANTEC INC (STN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:STN • CA85472N1096
99.08 USD
-1.93 (-1.91%)
At close: Jan 30, 2026
99.08 USD
0 (0%)
After Hours: 1/30/2026, 8:20:05 PM
We assign a fundamental rating of 6 out of 10 to STN. STN was compared to 56 industry peers in the Construction & Engineering industry. STN scores excellent on profitability, but there are some minor concerns on its financial health. STN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make STN a good candidate 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
- The Return On Assets of STN (5.95%) is better than 63.64% of its industry peers.
- STN has a Return On Equity (14.97%) which is comparable to the rest of the industry.
- STN's Return On Invested Capital of 9.44% is fine compared to the rest of the industry. STN outperforms 67.27% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for STN is significantly below the industry average of 15.97%.
- 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
- Looking at the Profit Margin, with a value of 7.63%, STN is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
- STN's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 11.23%, STN is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
- STN's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 54.46%, STN belongs to the best of the industry, outperforming 96.36% 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 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
- STN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.
- STN has a better debt/assets ratio than last year.
2.2 Solvency
- STN has an Altman-Z score of 3.33. 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 3.33, STN is in line with its industry, outperforming 60.00% of the companies in the same industry.
- The Debt to FCF ratio of STN is 3.36, which is a good value as it means it would take STN, 3.36 years of fcf income to pay off all of its debts.
- STN has a better Debt to FCF ratio (3.36) than 72.73% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that 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 50.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.99
WACC9.51%
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.
- Looking at the Current ratio, with a value of 1.27, STN is in line with its industry, outperforming 50.91% of the companies in the same industry.
- STN has a Quick 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.
- STN has a Quick ratio (1.27) which is comparable to the rest of the industry.
| 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.
- 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.
- The Revenue has grown by 12.49% in the past year. This is quite good.
- The Revenue has been growing by 9.59% on average over the past years. This is quite good.
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
- STN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.33% yearly.
- 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 Y20.33%
EPS Next 2Y17.31%
EPS Next 3Y15.33%
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
- With a Price/Earnings ratio of 25.94, STN can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, STN is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, STN is valued at the same level.
- The Price/Forward Earnings ratio is 21.98, which indicates a rather expensive current valuation of STN.
- 83.64% of the companies in the same industry are more expensive than STN, based on the Price/Forward Earnings ratio.
- STN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 21.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STN is valued a bit cheaper than the industry average as 61.82% of the companies are valued more expensively.
- 78.18% of the companies in the same industry are more expensive than STN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.99 | ||
| EV/EBITDA | 17.04 |
4.3 Compensation for Growth
- The 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 15.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)1.51
EPS Next 2Y17.31%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.66%, STN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.13, STN pays a better dividend. On top of this STN pays more dividend than 92.73% of the companies listed in the same industry.
- With a Dividend Yield of 0.66, STN pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
- The dividend of STN is nicely growing with an annual growth rate of 7.51%!
- 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
5.3 Sustainability
- 20.52% 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.
DP20.52%
EPS Next 2Y17.31%
EPS Next 3Y15.33%
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 5 / 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 25.94 and the Price/Book (PB) ratio is 4.73.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN) is 5 / 10.