STANTEC INC (STN.CA) Stock Fundamental Analysis
TSX:STN - Toronto Stock Exchange - CA85472N1096 - Common Stock - Currency: CAD
Overall STN gets a fundamental rating of 7 out of 10. We evaluated STN against 7 industry peers in the Construction & Engineering industry. STN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. STN is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, STN could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year STN was profitable.
STN had a positive operating cash flow in the past year.
Each year in the past 5 years STN has been profitable.
Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.34%, STN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
STN has a better Return On Equity (14.97%) than 66.67% of its industry peers.
STN has a better Return On Invested Capital (11.01%) than 66.67% of its industry peers.
STN had an Average Return On Invested Capital over the past 3 years of 8.26%. This is in line with the industry average of 10.22%.
The 3 year average ROIC (8.26%) for STN is below the current ROIC(11.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 14.97% | ||
| ROIC | 11.01% |
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 an excellent Profit Margin value of 6.09%, STN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
STN's Profit Margin has improved in the last couple of years.
STN has a Operating Margin of 9.78%. This is amongst the best in the industry. STN outperforms 83.33% of its industry peers.
STN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 54.42%, STN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
STN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.78% | ||
| PM (TTM) | 6.09% | ||
| GM | 54.42% |
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
STN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, STN has about the same amount of shares outstanding.
The number of shares outstanding for STN has been increased compared to 5 years ago.
Compared to 1 year ago, STN has an improved debt to assets ratio.
2.2 Solvency
STN has an Altman-Z score of 4.31. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN has a better Altman-Z score (4.31) than 100.00% of its industry peers.
STN has a debt to FCF ratio of 4.05. This is a neutral value as STN would need 4.05 years to pay back of all of its debts.
STN has a better Debt to FCF ratio (4.05) than 83.33% of its industry peers.
STN has a Debt/Equity ratio of 0.60. This is a neutral value indicating STN is somewhat dependend on debt financing.
STN has a Debt to Equity ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.32
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
STN's Current ratio of 1.29 is amongst the best of the industry. STN outperforms 83.33% of its industry peers.
A Quick Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.29, STN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
STN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.82%, which is quite impressive.
The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
The Revenue has grown by 42.47% in the past year. This is a very strong growth!
The Revenue has been growing by 9.59% on average over the past years. This is quite good.
EPS 1Y (TTM)21.82%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%28.89%
Revenue 1Y (TTM)42.47%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%13.35%
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 14.48% on average per year.
STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.01% yearly.
EPS Next Y18.97%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
EPS Next 5YN/A
Revenue Next Year13.19%
Revenue Next 2Y11.44%
Revenue Next 3Y14.01%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
STN is valuated quite expensively with a Price/Earnings ratio of 31.96.
Based on the Price/Earnings ratio, STN is valued a bit cheaper than 66.67% of the companies in the same industry.
STN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.21 indicates a quite expensive valuation of STN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STN indicates a slightly more expensive valuation: STN is more expensive than 66.67% of the companies listed in the same industry.
STN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.96 | ||
| Fwd PE | 25.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.92 | ||
| EV/EBITDA | 18.4 |
4.3 Compensation for Growth
STN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
STN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STN's earnings are expected to grow with 14.48% in the coming years.
PEG (NY)1.68
PEG (5Y)1.87
EPS Next 2Y15.86%
EPS Next 3Y14.48%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.59%, which is pretty low.
Compared to an average industry Dividend Yield of 1.60, STN has a dividend in line with its industry peers.
With a Dividend Yield of 0.59, STN pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of STN is nicely growing with an annual growth rate of 7.51%!
STN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
21.32% of the earnings are spent on dividend by STN. This is a low number and sustainable payout ratio.
The dividend of STN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.32%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
TSX:STN (8/1/2025, 7:00:00 PM)
149.91
-1.55 (-1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners76.18%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap17.10B
Analysts78.67
Price Target156.9 (4.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.82
Dividend Growth(5Y)7.51%
DP21.32%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.73%
Min EPS beat(2)3.04%
Max EPS beat(2)10.41%
EPS beat(4)3
Avg EPS beat(4)4.05%
Min EPS beat(4)-0.77%
Max EPS beat(4)10.41%
EPS beat(8)6
Avg EPS beat(8)3.88%
EPS beat(12)9
Avg EPS beat(12)4.18%
EPS beat(16)11
Avg EPS beat(16)3.59%
Revenue beat(2)1
Avg Revenue beat(2)0.74%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)2.67%
Revenue beat(4)1
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)2.67%
Revenue beat(8)5
Avg Revenue beat(8)1.47%
Revenue beat(12)9
Avg Revenue beat(12)1.36%
Revenue beat(16)9
Avg Revenue beat(16)-0.13%
PT rev (1m)1.74%
PT rev (3m)8.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.83%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.96 | ||
| Fwd PE | 25.21 | ||
| P/S | 2.36 | ||
| P/FCF | 33.92 | ||
| P/OCF | 28.35 | ||
| P/B | 5.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.4 |
EPS(TTM)4.69
EY3.13%
EPS(NY)5.95
Fwd EY3.97%
FCF(TTM)4.42
FCFY2.95%
OCF(TTM)5.29
OCFY3.53%
SpS63.44
BVpS25.82
TBVpS-1.7
PEG (NY)1.68
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 14.97% | ||
| ROCE | 14.23% | ||
| ROIC | 11.01% | ||
| ROICexc | 11.54% | ||
| ROICexgc | 33.81% | ||
| OM | 9.78% | ||
| PM (TTM) | 6.09% | ||
| GM | 54.42% | ||
| FCFM | 6.97% |
ROA(3y)5.02%
ROA(5y)4.56%
ROE(3y)12%
ROE(5y)10.98%
ROIC(3y)8.26%
ROIC(5y)7.69%
ROICexc(3y)8.76%
ROICexc(5y)8.2%
ROICexgc(3y)24.18%
ROICexgc(5y)22.38%
ROCE(3y)10.72%
ROCE(5y)9.96%
ROICexcg growth 3Y14.28%
ROICexcg growth 5Y9.44%
ROICexc growth 3Y14.7%
ROICexc growth 5Y3.94%
OM growth 3Y4.91%
OM growth 5Y1.76%
PM growth 3Y3.74%
PM growth 5Y3.3%
GM growth 3Y0.35%
GM growth 5Y0.13%
F-Score7
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.05 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 31.07% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 7.33 | ||
| Cash Conversion | 58.75% | ||
| Profit Quality | 114.33% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.31 |
F-Score7
WACC8.37%
ROIC/WACC1.32
Cap/Depr(3y)30.24%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.46%
Profit Quality(3y)122.48%
Profit Quality(5y)175.41%
High Growth Momentum
Growth
EPS 1Y (TTM)21.82%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%28.89%
EPS Next Y18.97%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
EPS Next 5YN/A
Revenue 1Y (TTM)42.47%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%13.35%
Revenue Next Year13.19%
Revenue Next 2Y11.44%
Revenue Next 3Y14.01%
Revenue Next 5YN/A
EBIT growth 1Y38.31%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year66.46%
EBIT Next 3Y26.93%
EBIT Next 5YN/A
FCF growth 1Y20.2%
FCF growth 3Y12.8%
FCF growth 5Y4.96%
OCF growth 1Y15.98%
OCF growth 3Y14.96%
OCF growth 5Y5.91%