STANTEC INC (STN.CA) Stock Fundamental Analysis
Canada - TSX:STN - CA85472N1096 - Common Stock
146.92 CAD
-4.09 (-2.71%)
STN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 has a decent growth rate and is not valued too expensively. This makes STN very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year STN was profitable.
In the past year STN had a positive cash flow from operations.
STN had positive earnings in each of the past 5 years.
STN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.28%, STN is in line with its industry, outperforming 57.14% of the companies in the same industry.
With a Return On Equity value of 14.83%, STN perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
STN has a Return On Invested Capital of 10.25%. This is comparable to the rest of the industry: STN outperforms 57.14% of its industry peers.
STN had an Average Return On Invested Capital over the past 3 years of 8.26%. This is significantly below the industry average of 35.13%.
The last Return On Invested Capital (10.25%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 14.83% | ||
| ROIC | 10.25% |
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
Looking at the Profit Margin, with a value of 7.10%, STN is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
STN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.71%, STN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of STN has grown nicely.
With an excellent Gross Margin value of 54.44%, STN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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 | 10.71% | ||
| PM (TTM) | 7.1% | ||
| GM | 54.44% |
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.
STN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, STN has more shares outstanding
Compared to 1 year ago, STN has an improved debt to assets ratio.
2.2 Solvency
STN has an Altman-Z score of 4.15. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.15, STN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
STN has a debt to FCF ratio of 3.26. This is a good value and a sign of high solvency as STN would need 3.26 years to pay back of all of its debts.
STN has a Debt to FCF ratio of 3.26. This is amongst the best in the industry. STN outperforms 85.71% 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's Debt to Equity ratio of 0.60 is on the low side compared to the rest of the industry. STN is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 4.15 |
ROIC/WACC1.12
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
The Current ratio of STN (1.29) is better than 85.71% of its industry peers.
STN has a Quick Ratio of 1.29. 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 better Quick ratio (1.29) than 85.71% of its industry peers.
| 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 23.87%, which is quite impressive.
STN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.12% yearly.
The Revenue has decreased by -9.42% in the past year.
The Revenue has been growing by 9.59% on average over the past years. This is quite good.
EPS 1Y (TTM)23.87%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%21.43%
Revenue 1Y (TTM)-9.42%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%6.92%
3.2 Future
STN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.04% yearly.
STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.65% yearly.
EPS Next Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
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.
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
The Price/Earnings ratio is 29.80, which means the current valuation is very expensive for STN.
STN's Price/Earnings ratio is in line with the industry average.
STN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 23.71, which indicates a rather expensive current valuation of STN.
Based on the Price/Forward Earnings ratio, STN is valued a bit more expensive than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, STN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.8 | ||
| Fwd PE | 23.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, STN is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.72 | ||
| EV/EBITDA | 19.47 |
4.3 Compensation for Growth
STN's 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.
A more expensive valuation may be justified as STN's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)1.38
PEG (5Y)1.74
EPS Next 2Y18.28%
EPS Next 3Y16.04%
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 1.30, STN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, STN's dividend is way lower than the S&P500 average.
| 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
22.30% 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.
DP22.3%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
TSX:STN (11/13/2025, 7:00:00 PM)
146.92
-4.09 (-2.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap16.76B
Revenue(TTM)6.15B
Net Income(TTM)436.70M
Analysts78.67
Price Target168.58 (14.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.82
Dividend Growth(5Y)7.51%
DP22.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.42%
Min EPS beat(2)-1.14%
Max EPS beat(2)3.98%
EPS beat(4)3
Avg EPS beat(4)4.07%
Min EPS beat(4)-1.14%
Max EPS beat(4)10.41%
EPS beat(8)5
Avg EPS beat(8)3.7%
EPS beat(12)8
Avg EPS beat(12)3.93%
EPS beat(16)11
Avg EPS beat(16)3.61%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-0.51%
Revenue beat(4)1
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)2.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)7
Avg Revenue beat(12)0.81%
Revenue beat(16)9
Avg Revenue beat(16)0.33%
PT rev (1m)1.79%
PT rev (3m)7.45%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.86%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.8 | ||
| Fwd PE | 23.71 | ||
| P/S | 2.72 | ||
| P/FCF | 26.72 | ||
| P/OCF | 23.92 | ||
| P/B | 5.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.47 |
EPS(TTM)4.93
EY3.36%
EPS(NY)6.2
Fwd EY4.22%
FCF(TTM)5.5
FCFY3.74%
OCF(TTM)6.14
OCFY4.18%
SpS53.94
BVpS25.82
TBVpS-1.7
PEG (NY)1.38
PEG (5Y)1.74
Graham Number53.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 14.83% | ||
| ROCE | 13.24% | ||
| ROIC | 10.25% | ||
| ROICexc | 10.74% | ||
| ROICexgc | 31.47% | ||
| OM | 10.71% | ||
| PM (TTM) | 7.1% | ||
| GM | 54.44% | ||
| FCFM | 10.2% |
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%
ROICexgc growth 3Y14.28%
ROICexgc 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-Score5
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 23.09% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 7.27 | ||
| Cash Conversion | 71.75% | ||
| Profit Quality | 143.65% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.15 |
F-Score5
WACC9.18%
ROIC/WACC1.12
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)23.87%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%21.43%
EPS Next Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.42%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%6.92%
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
Revenue Next 5YN/A
EBIT growth 1Y-0.27%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year66.9%
EBIT Next 3Y26.65%
EBIT Next 5YN/A
FCF growth 1Y118.04%
FCF growth 3Y12.8%
FCF growth 5Y4.96%
OCF growth 1Y89.15%
OCF growth 3Y14.96%
OCF growth 5Y5.91%
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.
What is the valuation status for STN stock?
ChartMill assigns a valuation rating of 4 / 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.
What are the PE and PB ratios of STANTEC INC (STN.CA) stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN.CA) is 29.8 and the Price/Book (PB) ratio is 5.69.
Is the dividend of STANTEC INC sustainable?
The dividend rating of STANTEC INC (STN.CA) is 5 / 10 and the dividend payout ratio is 22.3%.