STANTEC INC (STN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STN - CA85472N1096 - Common Stock
101.01 USD
+0.48 (+0.48%)
101.01 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 has a great profitability rating, there are some minor concerns on its financial health. STN is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make STN suitable 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.
- In the past 5 years STN has always been profitable.
- In the past 5 years STN always reported a positive cash flow from operatings.
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 has a Return On Invested Capital of 9.44%. This is in the better half of the industry: STN outperforms 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.
- 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.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STN is destroying value.
- The number of shares outstanding for STN remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, STN has more shares outstanding
- STN has a better debt/assets ratio than last year.
2.2 Solvency
- STN has an Altman-Z score of 3.36. 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 3.36, 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.
- The Debt to Equity ratio of STN (0.72) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.99
WACC9.52%
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.
- 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
- The Earnings Per Share is expected to grow by 15.33% on average over the next years. This is quite good.
- STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.23% yearly.
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- STN is valuated quite expensively with a Price/Earnings ratio of 26.58.
- Based on the Price/Earnings ratio, STN is valued a bit cheaper than 76.36% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. STN is around the same levels.
- Based on the Price/Forward Earnings ratio of 22.47, 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 rather cheap valuation: STN is cheaper than 81.82% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, STN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.58 | ||
| Fwd PE | 22.47 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STN is valued a bit cheaper than the industry average as 67.27% 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 | 19.42 | ||
| EV/EBITDA | 17.3 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- STN has a very decent profitability rating, which 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)1.31
PEG (5Y)1.55
EPS Next 2Y17.31%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
- STN has a yearly dividend return of 0.64%, 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 | 0.64% |
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 2Y17.31%
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 26.58 and the Price/Book (PB) ratio is 4.84.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN) is 5 / 10.