SNC-LAVALIN GROUP INC (SNC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SNC - CA78460T1057 - Common Stock
43.42 CAD
+0.55 (+1.28%)
SNC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 7 industry peers in the Construction & Engineering industry. SNC may be in some trouble as it scores bad on both profitability and health. SNC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SNC was profitable.
SNC had a negative operating cash flow in the past year.
In multiple years SNC reported negative net income over the last 5 years.
In multiple years SNC reported negative operating cash flow during the last 5 years.
1.2 Ratios
SNC's Return On Assets of 0.76% is on the low side compared to the rest of the industry. SNC is outperformed by 66.67% of its industry peers.
SNC has a worse Return On Equity (2.57%) than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.90%, SNC is in line with its industry, outperforming 55.56% of the companies in the same industry.
| 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 has a Profit Margin of 0.95%. This is in the lower half of the industry: SNC underperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of SNC has declined.
SNC has a Operating Margin of 3.79%. This is in the better half of the industry: SNC outperforms 66.67% of its industry peers.
SNC's Operating Margin has declined in the last couple of years.
SNC has a worse Gross Margin (6.55%) than 77.78% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SNC is destroying value.
The number of shares outstanding for SNC remains at a similar level compared to 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 has a worse Altman-Z score (1.67) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.67 |
ROIC/WACC0.5
WACC7.77%
2.3 Liquidity
A Current Ratio of 0.85 indicates that SNC may have some problems paying 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.
SNC has a Quick 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.
SNC has a worse Quick ratio (0.85) than 66.67% of its industry peers.
| 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.
SNC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.30% yearly.
The Revenue has been growing slightly by 5.73% in the past year.
Measured over the past years, SNC shows a decrease in Revenue. The Revenue has been decreasing by -4.16% on average per year.
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
SNC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.78% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 51.69, which means the current valuation is very expensive for SNC.
Based on the Price/Earnings ratio, SNC is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, SNC is valued quite expensively.
SNC is valuated rather expensively with a Price/Forward Earnings ratio of 22.31.
The rest of the industry has a similar Price/Forward Earnings ratio as SNC.
SNC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.46, 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
With a yearly dividend of 0.18%, SNC is not a good candidate for dividend investing.
SNC's Dividend Yield is slightly below the industry average, which is at 1.09.
With a Dividend Yield of 0.18, SNC pays less dividend than the S&P500 average, which is at 2.00.
| 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%
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)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.
Can you provide the valuation status for SNC-LAVALIN GROUP INC?
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.
What is the expected EPS growth for SNC-LAVALIN GROUP INC (SNC.CA) stock?
The Earnings per Share (EPS) of SNC-LAVALIN GROUP INC (SNC.CA) is expected to grow by 132.51% in the next year.
Can you provide the dividend sustainability for SNC stock?
The dividend rating of SNC-LAVALIN GROUP INC (SNC.CA) is 3 / 10 and the dividend payout ratio is 18.56%.