STANTEC INC (STN) Stock Fundamental Analysis
NYSE:STN - New York Stock Exchange, Inc. - CA85472N1096 - Common Stock - Currency: USD
Taking everything into account, STN scores 6 out of 10 in our fundamental rating. STN was compared to 50 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 expensively, but it does show have an excellent growth rating. 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.
STN had positive earnings in each of the past 5 years.
Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STN (6.34%) is better than 74.00% of its industry peers.
STN has a better Return On Equity (14.97%) than 70.00% of its industry peers.
STN's Return On Invested Capital of 11.01% is fine compared to the rest of the industry. STN outperforms 78.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STN is below the industry average of 12.17%.
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
STN has a better Profit Margin (6.09%) than 74.00% 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 76.00% of its industry peers.
In the last couple of years the Operating Margin of STN has grown nicely.
STN has a Gross Margin of 54.42%. This is amongst the best in the industry. STN outperforms 100.00% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STN is still creating some value.
Compared to 1 year ago, STN has about the same amount of shares outstanding.
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 3.91. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN has a better Altman-Z score (3.91) than 72.00% of its industry peers.
The Debt to FCF ratio of STN is 4.05, which is a neutral value as it means it would take STN, 4.05 years of fcf income to pay off all of its debts.
STN has a Debt to FCF ratio (4.05) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.60 indicates that 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 | 3.91 |
ROIC/WACC1.35
WACC8.17%
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 in line compared to the rest of the industry. STN outperforms 44.00% of its industry peers.
A Quick Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.29, STN is in line with its industry, outperforming 54.00% of the companies in the same 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 20.38% 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 a strong growth in Revenue. In the last year, the Revenue has grown by 42.84%.
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)20.38%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%35.37%
Revenue 1Y (TTM)42.84%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%19.01%
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.
Based on estimates for the next years, STN will show a quite strong growth in Revenue. The Revenue will grow by 9.08% on average per year.
EPS Next Y18.97%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
EPS Next 5YN/A
Revenue Next Year11.92%
Revenue Next 2Y9.8%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.48, the valuation of STN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as STN.
The average S&P500 Price/Earnings ratio is at 28.10. STN is around the same levels.
The Price/Forward Earnings ratio is 23.95, which indicates a rather expensive current valuation of STN.
STN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, STN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.48 | ||
| Fwd PE | 23.95 |
4.2 Price Multiples
STN's Enterprise Value to EBITDA is on the same level as the industry average.
STN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.56 | ||
| EV/EBITDA | 15.8 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as STN's earnings are expected to grow with 14.48% in the coming years.
PEG (NY)1.5
PEG (5Y)1.66
EPS Next 2Y15.86%
EPS Next 3Y14.48%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.72%, which is pretty low.
STN's Dividend Yield is rather good when compared to the industry average which is at 1.97. STN pays more dividend than 88.00% of the companies in the same industry.
With a Dividend Yield of 0.72, STN pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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%
91.41
-0.27 (-0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners87.13%
Inst Owner Change-0.54%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap10.43B
Analysts78.67
Price Target105.08 (14.95%)
Short Float %0.61%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)3.98%
PT rev (3m)11.77%
EPS NQ rev (1m)1.28%
EPS NQ rev (3m)6.01%
EPS NY rev (1m)0.83%
EPS NY rev (3m)6.99%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.48 | ||
| Fwd PE | 23.95 | ||
| P/S | 1.99 | ||
| P/FCF | 28.56 | ||
| P/OCF | 23.87 | ||
| P/B | 4.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.8 |
EPS(TTM)3.21
EY3.51%
EPS(NY)3.82
Fwd EY4.18%
FCF(TTM)3.2
FCFY3.5%
OCF(TTM)3.83
OCFY4.19%
SpS45.95
BVpS18.7
TBVpS-1.23
PEG (NY)1.5
PEG (5Y)1.66
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 | 3.91 |
F-Score7
WACC8.17%
ROIC/WACC1.35
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)20.38%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%35.37%
EPS Next Y18.97%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
EPS Next 5YN/A
Revenue 1Y (TTM)42.84%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%19.01%
Revenue Next Year11.92%
Revenue Next 2Y9.8%
Revenue Next 3Y9.08%
Revenue Next 5YN/A
EBIT growth 1Y38.31%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year63.08%
EBIT Next 3Y24.98%
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%