STANTEC INC (STN) Stock Fundamental Analysis
USA - NYSE:STN - CA85472N1096 - Common Stock
108.09 USD
-0.43 (-0.4%)
108.09 USD
0 (0%)
STN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. STN has an excellent profitability rating, but there are some minor concerns on its financial health. STN is not valued too expensively and it also shows a decent growth rate.
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.
STN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.28%, STN is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
STN has a Return On Equity of 14.83%. This is in the better half of the industry: STN outperforms 63.64% of its industry peers.
STN's Return On Invested Capital of 10.25% is fine compared to the rest of the industry. STN outperforms 69.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STN is significantly below the industry average of 17.19%.
The last Return On Invested Capital (10.25%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 14.83% | ||
| ROIC | 10.25% |
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
STN has a better Profit Margin (7.10%) than 78.18% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
The Operating Margin of STN (10.71%) is better than 76.36% of its industry peers.
STN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 54.44%, STN belongs to the top 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 | 10.71% | ||
| PM (TTM) | 7.1% | ||
| GM | 54.44% |
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 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.
2.2 Solvency
STN has an Altman-Z score of 4.18. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN's Altman-Z score of 4.18 is fine compared to the rest of the industry. STN outperforms 67.27% of its industry peers.
STN has a debt to FCF ratio of 3.26. This is a good value and a sign of high solvency as STN would need 3.26 years to pay back of all of its debts.
STN has a better Debt to FCF ratio (3.26) than 67.27% 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.
STN has a Debt to Equity ratio (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.09
WACC9.4%
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.
Looking at the Current ratio, with a value of 1.29, STN is in line with its industry, outperforming 54.55% of the companies in the same industry.
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.
The Quick ratio of STN (1.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
STN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.87%, which is quite impressive.
The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
The Revenue has decreased by -9.42% in the past year.
Measured over the past years, STN shows a quite strong growth in Revenue. The Revenue has been growing by 9.59% on average per year.
EPS 1Y (TTM)23.87%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%21.43%
Revenue 1Y (TTM)-9.42%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%6.92%
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 16.04% yearly.
Based on estimates for the next years, STN will show a quite strong growth in Revenue. The Revenue will grow by 12.65% on average per year.
EPS Next Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.88 indicates a quite expensive valuation of STN.
61.82% of the companies in the same industry are more expensive than STN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.83. STN is around the same levels.
Based on the Price/Forward Earnings ratio of 24.58, the valuation of STN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 61.82% of the companies listed in the same industry.
STN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 24.58 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STN.
STN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STN is cheaper than 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.7 | ||
| EV/EBITDA | 19.69 |
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.
A more expensive valuation may be justified as STN's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)1.43
PEG (5Y)1.8
EPS Next 2Y18.28%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.59%, which is pretty low.
Compared to an average industry Dividend Yield of 1.73, STN pays a better dividend. On top of this STN pays more dividend than 89.09% of the companies listed in the same industry.
With a Dividend Yield of 0.59, STN pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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
22.30% 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.
DP22.3%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
108.09
-0.43 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner Change-1.63%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap12.33B
Revenue(TTM)6.15B
Net Income(TTM)436.70M
Analysts78.67
Price Target120.9 (11.85%)
Short Float %1.03%
Short Ratio6.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.58
Dividend Growth(5Y)7.51%
DP22.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.42%
Min EPS beat(2)-1.14%
Max EPS beat(2)3.98%
EPS beat(4)3
Avg EPS beat(4)4.07%
Min EPS beat(4)-1.14%
Max EPS beat(4)10.41%
EPS beat(8)5
Avg EPS beat(8)3.7%
EPS beat(12)8
Avg EPS beat(12)3.93%
EPS beat(16)11
Avg EPS beat(16)3.61%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-0.51%
Revenue beat(4)1
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)2.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)7
Avg Revenue beat(12)0.81%
Revenue beat(16)9
Avg Revenue beat(16)0.33%
PT rev (1m)0.99%
PT rev (3m)5.75%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.86%
EPS NY rev (1m)0%
EPS NY rev (3m)2.13%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 24.58 | ||
| P/S | 2.82 | ||
| P/FCF | 27.7 | ||
| P/OCF | 24.8 | ||
| P/B | 5.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.69 |
EPS(TTM)3.5
EY3.24%
EPS(NY)4.4
Fwd EY4.07%
FCF(TTM)3.9
FCFY3.61%
OCF(TTM)4.36
OCFY4.03%
SpS38.28
BVpS18.32
TBVpS-1.21
PEG (NY)1.43
PEG (5Y)1.8
Graham Number37.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 14.83% | ||
| ROCE | 13.24% | ||
| ROIC | 10.25% | ||
| ROICexc | 10.74% | ||
| ROICexgc | 31.47% | ||
| OM | 10.71% | ||
| PM (TTM) | 7.1% | ||
| GM | 54.44% | ||
| FCFM | 10.2% |
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%
ROICexgc growth 3Y14.28%
ROICexgc 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-Score5
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 23.09% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 7.27 | ||
| Cash Conversion | 71.75% | ||
| Profit Quality | 143.65% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.18 |
F-Score5
WACC9.4%
ROIC/WACC1.09
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)23.87%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%21.43%
EPS Next Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.42%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%6.92%
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
Revenue Next 5YN/A
EBIT growth 1Y-0.27%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year66.9%
EBIT Next 3Y26.65%
EBIT Next 5YN/A
FCF growth 1Y118.04%
FCF growth 3Y12.8%
FCF growth 5Y4.96%
OCF growth 1Y89.15%
OCF growth 3Y14.96%
OCF growth 5Y5.91%
STANTEC INC / STN FAQ
Can you provide the ChartMill fundamental rating for STANTEC INC?
ChartMill assigns a fundamental rating of 6 / 10 to STN.
What is the valuation status for STN stock?
ChartMill assigns a valuation rating of 4 / 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.
What are the PE and PB ratios of STANTEC INC (STN) stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN) is 30.88 and the Price/Book (PB) ratio is 5.9.
Is the dividend of STANTEC INC sustainable?
The dividend rating of STANTEC INC (STN) is 5 / 10 and the dividend payout ratio is 22.3%.