STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:STN • CA85472N1096
134.94 CAD
-1.3 (-0.95%)
Last: Jan 30, 2026, 07:00 PM
STN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 8 industry peers in the Construction & Engineering industry. STN has an excellent profitability rating, but there are some minor concerns on its financial health. STN is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
- Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
- STN's Return On Assets of 5.95% is fine compared to the rest of the industry. STN outperforms 62.50% of its industry peers.
- STN has a Return On Equity of 14.97%. This is comparable to the rest of the industry: STN outperforms 50.00% of its industry peers.
- With a decent Return On Invested Capital value of 9.44%, STN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- STN had an Average Return On Invested Capital over the past 3 years of 8.26%. This is significantly below the industry average of 71.07%.
- The last Return On Invested Capital (9.44%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
| 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
- STN has a better Profit Margin (7.63%) than 75.00% of its industry peers.
- In the last couple of years the Profit Margin of STN has grown nicely.
- STN has a better Operating Margin (11.23%) than 100.00% of its industry peers.
- STN's Operating Margin has improved in the last couple of years.
- The Gross Margin of STN (54.46%) is better than 87.50% of its industry peers.
- In the last couple of years the Gross Margin of STN has remained more or less at the same level.
| 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 just above the Cost of Capital (WACC), so STN is still creating some value.
- The number of shares outstanding for STN remains at a similar level compared to 1 year ago.
- The number of shares outstanding for STN has been increased compared to 5 years ago.
- STN has a better debt/assets ratio than last year.
2.2 Solvency
- STN has an Altman-Z score of 3.34. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
- STN has a better Altman-Z score (3.34) than 62.50% of its industry peers.
- 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 Debt to FCF ratio of 3.36. This is amongst the best in the industry. STN outperforms 87.50% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that STN is somewhat dependend on debt financing.
- STN has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: STN underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.01
WACC9.35%
2.3 Liquidity
- STN has a Current 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.
- Looking at the Current ratio, with a value of 1.27, STN is in the better half of the industry, outperforming 75.00% of the companies in the same 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 amongst the best in the industry. STN outperforms 87.50% 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.
- Measured over the past years, STN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.12% on average per year.
- STN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.49%.
- STN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.59% yearly.
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.
- The Revenue is expected to grow by 9.23% on average over the next years. This is quite good.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.15 indicates a quite expensive valuation of STN.
- 75.00% of the companies in the same industry are more expensive than STN, based on the Price/Earnings ratio.
- STN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 22.13, which indicates a rather expensive current valuation of STN.
- Based on the Price/Forward Earnings ratio, STN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of STN to the average of the S&P500 Index (25.57), we can say STN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 22.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STN is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, STN is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.12 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of STN 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)1.29
PEG (5Y)1.53
EPS Next 2Y17.31%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.66%, STN is not a good candidate for dividend investing.
- STN's Dividend Yield is a higher than the industry average which is at 0.89.
- With a Dividend Yield of 0.66, STN pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
- On average, the dividend of STN grows each year by 7.51%, which is quite nice.
- 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
- 20.52% 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.
DP20.52%
EPS Next 2Y17.31%
EPS Next 3Y15.33%
STANTEC INC / STN.CA FAQ
Can you provide the ChartMill fundamental rating for STANTEC INC?
ChartMill assigns a fundamental rating of 6 / 10 to STN.CA.
Can you provide the valuation status for STANTEC INC?
ChartMill assigns a valuation rating of 5 / 10 to STANTEC INC (STN.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for STANTEC INC?
STANTEC INC (STN.CA) 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.CA) is 26.15 and the Price/Book (PB) ratio is 4.77.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN.CA) is 6 / 10.