STANTEC INC (STN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STN - CA85472N1096 - Common Stock
94.71 USD
-0.85 (-0.89%)
94.71 USD
0 (0%)
Overall STN gets a fundamental rating of 6 out of 10. We evaluated STN against 55 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 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.
In the past year STN had a positive cash flow from operations.
In the past 5 years STN has always been profitable.
Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.95%, STN is doing good in the industry, outperforming 63.64% of the companies in the same industry.
STN has a Return On Equity of 14.97%. This is comparable to the rest of the industry: STN outperforms 60.00% of its industry peers.
With a decent Return On Invested Capital value of 9.44%, STN is doing good in the industry, outperforming 65.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STN is significantly below the industry average of 17.90%.
The 3 year average ROIC (8.26%) for STN is below the current ROIC(9.44%), indicating increased profibility in the last year.
| 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
STN has a Profit Margin of 7.63%. This is in the better half of the industry: STN outperforms 74.55% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
STN has a Operating Margin of 11.23%. This is in the better half of the industry: STN outperforms 76.36% of its industry peers.
STN's Operating Margin has improved in the last couple of years.
The Gross Margin of STN (54.46%) is better than 96.36% of its industry peers.
STN's Gross Margin has been stable in the last couple of years.
| 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 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.
Compared to 5 years ago, STN has more shares outstanding
Compared to 1 year ago, STN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.30 indicates that STN is not in any danger for bankruptcy at the moment.
STN has a Altman-Z score (3.30) which is comparable to the rest of the industry.
STN has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as STN would need 3.36 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.36, STN is doing good in the industry, outperforming 70.91% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that STN is somewhat dependend on debt financing.
STN has a Debt to Equity ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.05
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
The Current ratio of STN (1.27) is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.27, STN is in line with its industry, outperforming 49.09% of the companies in the same 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.
Looking at the last year, STN shows a quite strong growth in Revenue. The Revenue has grown by 12.49% in the last 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)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
The Earnings Per Share is expected to grow by 15.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.25% on average over the next years. This is quite good.
EPS Next Y20.23%
EPS Next 2Y17.37%
EPS Next 3Y15.25%
EPS Next 5YN/A
Revenue Next Year12.04%
Revenue Next 2Y11.03%
Revenue Next 3Y9.25%
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
The Price/Earnings ratio is 25.32, which means the current valuation is very expensive for STN.
Based on the Price/Earnings ratio, STN is valued a bit cheaper than 70.91% of the companies in the same industry.
STN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
STN is valuated rather expensively with a Price/Forward Earnings ratio of 21.43.
Based on the Price/Forward Earnings ratio, STN is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
STN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 21.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued a bit cheaper than 63.64% of the companies in the same industry.
STN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STN is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.53 | ||
| EV/EBITDA | 16.81 |
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.
A more expensive valuation may be justified as STN's earnings are expected to grow with 15.25% in the coming years.
PEG (NY)1.25
PEG (5Y)1.48
EPS Next 2Y17.37%
EPS Next 3Y15.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, 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 1.66. STN pays more dividend than 92.73% of the companies in the same industry.
With a Dividend Yield of 0.68, STN pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of STN is nicely growing with an annual growth rate of 7.51%!
STN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
STN pays out 20.52% of its income as dividend. This is a sustainable payout ratio.
STN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.52%
EPS Next 2Y17.37%
EPS Next 3Y15.25%
94.71
-0.85 (-0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner Change-1.83%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap10.80B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target122.99 (29.86%)
Short Float %0.88%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.59
Dividend Growth(5Y)7.51%
DP20.52%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.06%
Min EPS beat(2)-1.14%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)3.07%
Min EPS beat(4)-1.14%
Max EPS beat(4)10.41%
EPS beat(8)4
Avg EPS beat(8)1.56%
EPS beat(12)8
Avg EPS beat(12)3.94%
EPS beat(16)10
Avg EPS beat(16)3.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.53%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-1.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)2.67%
Revenue beat(8)2
Avg Revenue beat(8)-0.57%
Revenue beat(12)6
Avg Revenue beat(12)0.58%
Revenue beat(16)9
Avg Revenue beat(16)0.54%
PT rev (1m)1.73%
PT rev (3m)3.09%
EPS NQ rev (1m)-5.61%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)-1.08%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 21.43 | ||
| P/S | 2.35 | ||
| P/FCF | 18.53 | ||
| P/OCF | 17.4 | ||
| P/B | 4.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.81 |
EPS(TTM)3.74
EY3.95%
EPS(NY)4.42
Fwd EY4.67%
FCF(TTM)5.11
FCFY5.4%
OCF(TTM)5.44
OCFY5.75%
SpS40.22
BVpS20.51
TBVpS-3.94
PEG (NY)1.25
PEG (5Y)1.48
Graham Number41.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 14.97% | ||
| ROCE | 12.22% | ||
| ROIC | 9.44% | ||
| ROICexc | 10.07% | ||
| ROICexgc | 33.73% | ||
| OM | 11.23% | ||
| PM (TTM) | 7.63% | ||
| GM | 54.46% | ||
| FCFM | 12.71% |
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-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 16.32% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 8.95 | ||
| Cash Conversion | 82.99% | ||
| Profit Quality | 166.47% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.3 |
F-Score6
WACC9.03%
ROIC/WACC1.05
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)24.64%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%17.69%
EPS Next Y20.23%
EPS Next 2Y17.37%
EPS Next 3Y15.25%
EPS Next 5YN/A
Revenue 1Y (TTM)12.49%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%11.84%
Revenue Next Year12.04%
Revenue Next 2Y11.03%
Revenue Next 3Y9.25%
Revenue Next 5YN/A
EBIT growth 1Y34.51%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year67.78%
EBIT Next 3Y26.16%
EBIT Next 5YN/A
FCF growth 1Y109.94%
FCF growth 3Y12.8%
FCF growth 5Y4.96%
OCF growth 1Y74.73%
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 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.
What are the PE and PB ratios of STANTEC INC (STN) stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN) is 25.32 and the Price/Book (PB) ratio is 4.62.
Is the dividend of STANTEC INC sustainable?
The dividend rating of STANTEC INC (STN) is 5 / 10 and the dividend payout ratio is 20.52%.