STANTEC INC (STN) Stock Fundamental Analysis
NYSE:STN - New York Stock Exchange, Inc. - CA85472N1096 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to STN. STN was compared to 51 industry peers in the Construction & Engineering industry. STN scores excellent on profitability, but there are some minor concerns on its financial health. STN is valued quite expensive, but it does show an excellent growth. This makes STN very considerable for growth investing!
1. Profitability
1.1 Basic Checks
STN had positive earnings in the past year.
STN had a positive operating cash flow in the past year.
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
STN has a Return On Assets of 6.34%. This is in the better half of the industry: STN outperforms 74.51% of its industry peers.
STN's Return On Equity of 14.97% is fine compared to the rest of the industry. STN outperforms 70.59% of its industry peers.
STN has a Return On Invested Capital of 11.01%. This is in the better half of the industry: STN outperforms 76.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STN is significantly below the industry average of 16.97%.
The last Return On Invested Capital (11.01%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
| 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
STN has a better Profit Margin (6.09%) than 72.55% of its industry peers.
In the last couple of years the Profit Margin of STN has grown nicely.
STN's Operating Margin of 9.78% is fine compared to the rest of the industry. STN outperforms 76.47% 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 100.00% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STN is creating some value.
Compared to 1 year ago, STN has about the same amount of shares outstanding.
STN has more shares outstanding than it did 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 4.18. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN has a better Altman-Z score (4.18) than 70.59% 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 Debt to FCF ratio of 4.05. This is in the better half of the industry: STN outperforms 60.78% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that STN is somewhat dependend on debt financing.
STN has a Debt to Equity ratio of 0.60. This is comparable to the rest of the industry: STN outperforms 54.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.22
WACC9.03%
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 comparable to the rest of the industry.
A Quick Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
The Quick ratio of STN (1.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.82% 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.
Looking at the last year, STN shows a very strong growth in Revenue. The Revenue has grown by 42.47%.
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
STN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.48% yearly.
The Revenue is expected to grow by 9.08% on average over the next years. This is quite good.
EPS Next Y18.97%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
EPS Next 5YN/A
Revenue Next Year11.73%
Revenue Next 2Y9.76%
Revenue Next 3Y9.08%
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
With a Price/Earnings ratio of 30.57, STN can be considered very expensive at the moment.
STN's Price/Earnings ratio is a bit cheaper when compared to the industry. STN is cheaper than 60.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.17, STN is valued at the same level.
With a Price/Forward Earnings ratio of 24.08, STN is valued on the expensive side.
STN's Price/Forward Earnings ratio is in line with the industry average.
STN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.57 | ||
| Fwd PE | 24.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STN is on the same level as its industry peers.
STN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.4 | ||
| EV/EBITDA | 17.57 |
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 a very decent profitability rating, which may justify a higher PE ratio.
STN's earnings are expected to grow with 14.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.61
PEG (5Y)1.79
EPS Next 2Y15.86%
EPS Next 3Y14.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, STN is not a good candidate for dividend investing.
STN's Dividend Yield is rather good when compared to the industry average which is at 1.77. STN pays more dividend than 88.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, STN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of STN is nicely growing with an annual growth rate of 7.51%!
STN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of STN decreased recently.
Dividend Growth(5Y)7.51%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
STN pays out 21.32% of its income as dividend. This is a sustainable payout ratio.
STN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.32%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
103.95
+0.53 (+0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners87.13%
Inst Owner Change-18.12%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap11.86B
Analysts78.67
Price Target105.11 (1.12%)
Short Float %0.63%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.6
Dividend Growth(5Y)7.51%
DP21.32%
Div Incr Years1
Div Non Decr Years1
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)4.89%
PT rev (3m)11.8%
EPS NQ rev (1m)0.83%
EPS NQ rev (3m)6.01%
EPS NY rev (1m)0%
EPS NY rev (3m)6.85%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.84%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.57 | ||
| Fwd PE | 24.08 | ||
| P/S | 2.26 | ||
| P/FCF | 32.4 | ||
| P/OCF | 27.08 | ||
| P/B | 5.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.57 |
EPS(TTM)3.4
EY3.27%
EPS(NY)4.32
Fwd EY4.15%
FCF(TTM)3.21
FCFY3.09%
OCF(TTM)3.84
OCFY3.69%
SpS46.06
BVpS18.74
TBVpS-1.24
PEG (NY)1.61
PEG (5Y)1.79
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 | 4.18 |
F-Score7
WACC9.03%
ROIC/WACC1.22
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 Year11.73%
Revenue Next 2Y9.76%
Revenue Next 3Y9.08%
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%