STANTEC INC (STN) Stock Fundamental Analysis
NYSE:STN - New York Stock Exchange, Inc. - CA85472N1096 - Common Stock - Currency: USD
STN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Construction & Engineering industry. While STN has a great profitability rating, there are some minor concerns on its financial health. STN is valued quite expensively, but it does show have an excellent growth rating. With these ratings, STN could be worth investigating further for growth 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.
In the past 5 years STN has always been profitable.
In the past 5 years STN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of STN (6.34%) is better than 74.51% of its industry peers.
The Return On Equity of STN (14.97%) is better than 70.59% of its industry peers.
STN has a better Return On Invested Capital (11.01%) than 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 16.60%.
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 Profit Margin of 6.09%. This is in the better half of the industry: STN outperforms 72.55% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
The Operating Margin of STN (9.78%) is better than 76.47% of its industry peers.
STN's Operating Margin has improved in the last couple of years.
STN's Gross Margin of 54.42% is amongst the best of the industry. STN outperforms 100.00% of its industry peers.
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
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.
The number of shares outstanding for STN has been increased compared to 5 years ago.
The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.24 indicates that STN is not in any danger for bankruptcy at the moment.
The Altman-Z score of STN (4.24) is better than 68.63% 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 62.75% 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 in line compared 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 | 4.24 |
ROIC/WACC1.26
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
STN has a Current ratio of 1.29. This is comparable to the rest of the industry: STN outperforms 50.98% 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 Quick ratio of 1.29. This is in the better half of the industry: STN outperforms 60.78% of its industry peers.
| 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.
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 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
The Earnings Per Share is expected to grow by 14.48% on average over the next years. This is quite good.
STN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.08% yearly.
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
Based on the Price/Earnings ratio of 30.82, the valuation of STN can be described as expensive.
STN's Price/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/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.30, STN is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as STN.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, STN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 24.3 |
4.2 Price Multiples
STN's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as STN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.7 | ||
| EV/EBITDA | 17.94 |
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.
A more expensive valuation may be justified as STN's earnings are expected to grow with 14.48% in the coming years.
PEG (NY)1.62
PEG (5Y)1.8
EPS Next 2Y15.86%
EPS Next 3Y14.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, 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 1.81. STN pays more dividend than 88.24% of the companies in the same industry.
With a Dividend Yield of 0.61, STN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
On average, the dividend of STN grows each year by 7.51%, which is quite nice.
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.
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%
105.4
-0.95 (-0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners76.18%
Inst Owner Change-18.12%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap12.02B
Analysts78.67
Price Target112.45 (6.69%)
Short Float %0.63%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.6
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)6.98%
PT rev (3m)12.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)0%
EPS NY rev (3m)6.85%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 24.3 | ||
| P/S | 2.28 | ||
| P/FCF | 32.7 | ||
| P/OCF | 27.33 | ||
| P/B | 5.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.94 |
EPS(TTM)3.42
EY3.24%
EPS(NY)4.34
Fwd EY4.12%
FCF(TTM)3.22
FCFY3.06%
OCF(TTM)3.86
OCFY3.66%
SpS46.28
BVpS18.83
TBVpS-1.24
PEG (NY)1.62
PEG (5Y)1.8
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 | 4.24 |
F-Score7
WACC8.75%
ROIC/WACC1.26
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%