SNC-LAVALIN GROUP INC (SNC.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:SNC • CA78460T1057
43.42 CAD
+0.55 (+1.28%)
Last: Oct 6, 2023, 07:00 PM
Taking everything into account, SNC scores 2 out of 10 in our fundamental rating. SNC was compared to 8 industry peers in the Construction & Engineering industry. SNC has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, SNC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- SNC had positive earnings in the past year.
- SNC had a negative operating cash flow in the past year.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.76%, SNC is doing worse than 66.67% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 2.57%, SNC is doing worse than 66.67% of the companies in the same industry.
- SNC's Return On Invested Capital of 3.90% is in line compared to the rest of the industry. SNC outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 2.57% | ||
| ROIC | 3.9% |
ROA(3y)-0.83%
ROA(5y)-1.97%
ROE(3y)-5%
ROE(5y)-8.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SNC's Profit Margin of 0.95% is on the low side compared to the rest of the industry. SNC is outperformed by 66.67% of its industry peers.
- In the last couple of years the Profit Margin of SNC has declined.
- The Operating Margin of SNC (3.79%) is better than 66.67% of its industry peers.
- SNC's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 6.55%, SNC is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
- SNC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.79% | ||
| PM (TTM) | 0.95% | ||
| GM | 6.55% |
OM growth 3Y37.65%
OM growth 5Y-15.93%
PM growth 3Y-66.54%
PM growth 5Y-49.9%
GM growth 3Y13.54%
GM growth 5Y-10.11%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SNC is destroying value.
- SNC has about the same amout of shares outstanding than it did 1 year ago.
- SNC has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.67, we must say that SNC is in the distress zone and has some risk of bankruptcy.
- SNC's Altman-Z score of 1.67 is on the low side compared to the rest of the industry. SNC is outperformed by 66.67% of its industry peers.
- A Debt/Equity ratio of 0.62 indicates that SNC is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.62, SNC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.67 |
ROIC/WACC0.5
WACC7.77%
2.3 Liquidity
- SNC has a Current Ratio of 0.85. This is a bad value and indicates that SNC is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.85, SNC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- A Quick Ratio of 0.85 indicates that SNC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.85, SNC is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 37.70% over the past year.
- Measured over the past years, SNC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.30% on average per year.
- SNC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.73%.
- The Revenue has been decreasing by -4.16% on average over the past years.
EPS 1Y (TTM)37.7%
EPS 3Y-70.1%
EPS 5Y-21.3%
EPS Q2Q%32.26%
Revenue 1Y (TTM)5.73%
Revenue growth 3Y-7.43%
Revenue growth 5Y-4.16%
Sales Q2Q%13.9%
3.2 Future
- The Earnings Per Share is expected to grow by 45.78% on average over the next years. This is a very strong growth
- SNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.14% yearly.
EPS Next Y132.51%
EPS Next 2Y74.39%
EPS Next 3Y58.64%
EPS Next 5Y45.78%
Revenue Next Year7.37%
Revenue Next 2Y4.45%
Revenue Next 3Y4.22%
Revenue Next 5Y3.14%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- Based on the Price/Earnings ratio of 51.69, the valuation of SNC can be described as expensive.
- SNC's Price/Earnings ratio is a bit more expensive when compared to the industry. SNC is more expensive than 66.67% of the companies in the same industry.
- SNC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.32.
- A Price/Forward Earnings ratio of 22.31 indicates a rather expensive valuation of SNC.
- SNC's Price/Forward Earnings is on the same level as the industry average.
- SNC 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 | 51.69 | ||
| Fwd PE | 22.31 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SNC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.33 |
4.3 Compensation for Growth
- SNC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SNC's earnings are expected to grow with 58.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y74.39%
EPS Next 3Y58.64%
5. Dividend
5.1 Amount
- SNC has a yearly dividend return of 0.18%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.89, SNC is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.83, SNC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
5.2 History
- The dividend of SNC decreases each year by -40.74%.
- SNC has been paying a dividend for over 5 years, so it has already some track record.
- SNC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-40.74%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- SNC pays out 18.56% of its income as dividend. This is a sustainable payout ratio.
DP18.56%
EPS Next 2Y74.39%
EPS Next 3Y58.64%
SNC-LAVALIN GROUP INC / SNC.CA FAQ
What is the ChartMill fundamental rating of SNC-LAVALIN GROUP INC (SNC.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SNC.CA.
What is the valuation status for SNC stock?
ChartMill assigns a valuation rating of 3 / 10 to SNC-LAVALIN GROUP INC (SNC.CA). This can be considered as Overvalued.
What is the profitability of SNC stock?
SNC-LAVALIN GROUP INC (SNC.CA) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for SNC stock?
The Price/Earnings (PE) ratio for SNC-LAVALIN GROUP INC (SNC.CA) is 51.69 and the Price/Book (PB) ratio is 2.59.
What is the earnings growth outlook for SNC-LAVALIN GROUP INC?
The Earnings per Share (EPS) of SNC-LAVALIN GROUP INC (SNC.CA) is expected to grow by 132.51% in the next year.