STANTEC INC (STN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STN - CA85472N1096 - Common Stock
100.47 USD
-1.23 (-1.21%)
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 has a great profitability rating, there are some minor concerns on its financial health. STN is growing strongly while it is still valued neutral. This is a good combination! 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.
- 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
- STN's Return On Assets of 5.95% is fine compared to the rest of the industry. STN outperforms 63.64% of its industry peers.
- 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.
- STN has a better Return On Invested Capital (9.44%) than 67.27% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for STN is significantly below the industry average of 15.97%.
- 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
- With a decent Profit Margin value of 7.63%, STN is doing good in the industry, outperforming 74.55% of the companies in the same industry.
- In the last couple of years the Profit Margin of STN has grown nicely.
- With a decent Operating Margin value of 11.23%, STN is doing good in the industry, outperforming 76.36% of the companies in the same industry.
- In the last couple of years the Operating Margin of STN has grown nicely.
- STN has a better Gross Margin (54.46%) 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STN is still creating some value.
- The number of shares outstanding for STN remains at a similar level compared to 1 year ago.
- The number of shares outstanding for STN has been increased compared to 5 years ago.
- The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.42 indicates that STN is not in any danger for bankruptcy at the moment.
- STN has a Altman-Z score (3.42) 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.
- STN has a Debt to FCF ratio of 3.36. This is in the better half of the industry: STN outperforms 72.73% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that STN is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.72, STN perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.03
WACC9.13%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
- STN has a Current ratio of 1.27. This is comparable to the rest of the industry: STN outperforms 50.91% of its industry peers.
- 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 of 1.27. This is comparable to the rest of the industry: STN outperforms 50.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.64% over the past year.
- The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
- Looking at the last year, STN shows a quite strong growth in Revenue. The Revenue has grown by 12.49% in the last year.
- 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
- Based on estimates for the next years, STN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.22% on average per year.
- The Revenue is expected to grow by 9.23% on average over the next years. This is quite good.
EPS Next Y20.18%
EPS Next 2Y17.33%
EPS Next 3Y15.22%
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 26.86, 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 74.55% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.30. STN is around the same levels.
- A Price/Forward Earnings ratio of 22.76 indicates a rather expensive valuation of STN.
- Based on the Price/Forward Earnings ratio, STN is valued cheaper than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, STN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 22.76 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STN is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
- STN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STN is cheaper than 78.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.67 | ||
| EV/EBITDA | 17.76 |
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 15.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)1.57
EPS Next 2Y17.33%
EPS Next 3Y15.22%
5. Dividend
5.1 Amount
- STN has a yearly dividend return of 0.65%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.44, STN pays a better dividend. On top of this STN pays more dividend than 92.73% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
- On average, the dividend of STN grows each year by 7.51%, which is quite nice.
- 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 2Y17.33%
EPS Next 3Y15.22%
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 26.86 and the Price/Book (PB) ratio is 4.9.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN) is 5 / 10.