SNC-LAVALIN GROUP INC (SNC.CA) Fundamental Analysis & Valuation

TSX:SNC • CA78460T1057

43.42 CAD
+0.55 (+1.28%)
Last: Oct 6, 2023, 07:00 PM
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This SNC.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to SNC. SNC was compared to 8 industry peers in the Construction & Engineering industry. Both the profitability and financial health of SNC have multiple concerns. SNC is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

1

1. SNC.CA Profitability Analysis

1.1 Basic Checks

  • In the past year SNC was profitable.
  • In the past year SNC has reported a negative cash flow from operations.
SNC.CA Yearly Net Income VS EBIT VS OCF VS FCFSNC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M -500M -1B

1.2 Ratios

  • SNC has a Return On Assets of 0.76%. This is in the lower half of the industry: SNC underperforms 66.67% of its industry peers.
  • SNC has a worse Return On Equity (2.57%) than 66.67% of its industry peers.
  • SNC has a Return On Invested Capital (3.90%) which is in line with its industry peers.
Industry RankSector 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
SNC.CA Yearly ROA, ROE, ROICSNC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 20 -20

1.3 Margins

  • SNC has a Profit Margin of 0.95%. This is in the lower half of the industry: SNC underperforms 66.67% of its industry peers.
  • SNC's Profit Margin has declined in the last couple of years.
  • SNC has a better Operating Margin (3.79%) than 66.67% of its industry peers.
  • In the last couple of years the Operating Margin of SNC has declined.
  • Looking at the Gross Margin, with a value of 6.55%, SNC is doing worse than 77.78% of the companies in the same industry.
  • SNC's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
SNC.CA Yearly Profit, Operating, Gross MarginsSNC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 -10

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. SNC.CA Health Analysis

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.
  • The debt/assets ratio for SNC is higher compared to a year ago.
SNC.CA Yearly Shares OutstandingSNC.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M
SNC.CA Yearly Total Debt VS Total AssetsSNC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

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 has a worse Altman-Z score (1.67) than 66.67% of its industry peers.
  • SNC has a Debt/Equity ratio of 0.62. This is a neutral value indicating SNC is somewhat dependend on debt financing.
  • SNC has a better Debt to Equity ratio (0.62) than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF N/A
Altman-Z 1.67
ROIC/WACC0.5
WACC7.77%
SNC.CA Yearly LT Debt VS Equity VS FCFSNC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 0.85 indicates that SNC may have some problems paying its short term obligations.
  • SNC has a Current ratio of 0.85. This is in the lower half of the industry: SNC underperforms 66.67% of its industry peers.
  • A Quick Ratio of 0.85 indicates that SNC may have some problems paying its short term obligations.
  • With a Quick 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.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.85
SNC.CA Yearly Current Assets VS Current LiabilitesSNC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. SNC.CA Growth Analysis

3.1 Past

  • SNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.70%, which is quite impressive.
  • The earnings per share for SNC have been decreasing by -21.30% on average. This is quite bad
  • 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

  • Based on estimates for the next years, SNC will show a very strong growth in Earnings Per Share. The EPS will grow by 45.78% on average per year.
  • Based on estimates for the next years, SNC will show a small growth in Revenue. The Revenue will grow by 3.14% on average per year.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
SNC.CA Yearly Revenue VS EstimatesSNC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B 10B
SNC.CA Yearly EPS VS EstimatesSNC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4

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3

4. SNC.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • SNC is valuated quite expensively with a Price/Earnings ratio of 51.69.
  • Compared to the rest of the industry, the Price/Earnings ratio of SNC indicates a slightly more expensive valuation: SNC is more expensive than 66.67% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.70. SNC is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 22.31, SNC is valued on the expensive side.
  • SNC's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, SNC is valued at the same level.
Industry RankSector Rank
PE 51.69
Fwd PE 22.31
SNC.CA Price Earnings VS Forward Price EarningsSNC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • SNC's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.33
SNC.CA Per share dataSNC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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.
  • A more expensive valuation may be justified as SNC's earnings are expected to grow with 58.64% in the coming years.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y74.39%
EPS Next 3Y58.64%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. SNC.CA Dividend Analysis

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.
  • With a Dividend Yield of 0.18, SNC pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector 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
SNC.CA Yearly Dividends per shareSNC.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 0.1 0.2 0.3 0.4 0.5

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.CA Yearly Income VS Free CF VS DividendSNC.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 500M -500M -1B
SNC.CA Dividend Payout.SNC.CA Dividend Payout, showing the Payout Ratio.SNC.CA Dividend Payout.PayoutRetained Earnings

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SNC.CA Fundamentals: All Metrics, Ratios and Statistics

SNC-LAVALIN GROUP INC

TSX:SNC (10/6/2023, 7:00:00 PM)

43.42

+0.55 (+1.28%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)N/A
Earnings (Next)N/A
Inst Owners29.67%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.62B
Revenue(TTM)7.94B
Net Income(TTM)75.66M
Analysts77.33
Price Target48.13 (10.85%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.18%
Yearly Dividend0.08
Dividend Growth(5Y)-40.74%
DP18.56%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.77%
Min EPS beat(2)17.35%
Max EPS beat(2)34.2%
EPS beat(4)2
Avg EPS beat(4)-36.36%
Min EPS beat(4)-186%
Max EPS beat(4)34.2%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)9.36%
Min Revenue beat(2)6.53%
Max Revenue beat(2)12.19%
Revenue beat(4)3
Avg Revenue beat(4)4.98%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)12.19%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)15.08%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-2.41%
EPS NY rev (1m)0%
EPS NY rev (3m)5.37%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)7.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.5%
Valuation
Industry RankSector Rank
PE 51.69
Fwd PE 22.31
P/S 0.96
P/FCF N/A
P/OCF N/A
P/B 2.59
P/tB N/A
EV/EBITDA 17.33
EPS(TTM)0.84
EY1.93%
EPS(NY)1.95
Fwd EY4.48%
FCF(TTM)-1.78
FCFYN/A
OCF(TTM)-1.12
OCFYN/A
SpS45.25
BVpS16.8
TBVpS-4.32
PEG (NY)0.39
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 0.76%
ROE 2.57%
ROCE 5.42%
ROIC 3.9%
ROICexc 4.52%
ROICexgc 20.04%
OM 3.79%
PM (TTM) 0.95%
GM 6.55%
FCFM N/A
ROA(3y)-0.83%
ROA(5y)-1.97%
ROE(3y)-5%
ROE(5y)-8.45%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y45.32%
ROICexgc growth 5Y-20.73%
ROICexc growth 3Y35.29%
ROICexc growth 5Y-10.11%
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%
F-Score4
Asset Turnover0.79
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF N/A
Debt/EBITDA 3.36
Cap/Depr 47.8%
Cap/Sales 1.47%
Interest Coverage 1.87
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.85
Quick Ratio 0.85
Altman-Z 1.67
F-Score4
WACC7.77%
ROIC/WACC0.5
Cap/Depr(3y)34.75%
Cap/Depr(5y)36.36%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.7%
EPS 3Y-70.1%
EPS 5Y-21.3%
EPS Q2Q%32.26%
EPS Next Y132.51%
EPS Next 2Y74.39%
EPS Next 3Y58.64%
EPS Next 5Y45.78%
Revenue 1Y (TTM)5.73%
Revenue growth 3Y-7.43%
Revenue growth 5Y-4.16%
Sales Q2Q%13.9%
Revenue Next Year7.37%
Revenue Next 2Y4.45%
Revenue Next 3Y4.22%
Revenue Next 5Y3.14%
EBIT growth 1Y64.99%
EBIT growth 3Y27.43%
EBIT growth 5Y-19.42%
EBIT Next Year95.2%
EBIT Next 3Y37.08%
EBIT Next 5Y24.55%
FCF growth 1Y-1717.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-476.46%
OCF growth 3YN/A
OCF growth 5YN/A

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.