Logo image of STN

STANTEC INC (STN) Stock Fundamental Analysis

NYSE:STN - New York Stock Exchange, Inc. - CA85472N1096 - Common Stock - Currency: USD

103.95  +0.53 (+0.51%)

After market: 103.95 0 (0%)

Fundamental Rating

6

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!


Dividend Valuation Growth Profitability Health

7

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.
STN Yearly Net Income VS EBIT VS OCF VS FCFSTN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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 RankSector 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%
STN Yearly ROA, ROE, ROICSTN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

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 RankSector 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%
STN Yearly Profit, Operating, Gross MarginsSTN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

5

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.
STN Yearly Shares OutstandingSTN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
STN Yearly Total Debt VS Total AssetsSTN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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 RankSector Rank
Debt/Equity 0.6
Debt/FCF 4.05
Altman-Z 4.18
ROIC/WACC1.22
WACC9.03%
STN Yearly LT Debt VS Equity VS FCFSTN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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 RankSector Rank
Current Ratio 1.29
Quick Ratio 1.29
STN Yearly Current Assets VS Current LiabilitesSTN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

7

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.
STN Yearly Revenue VS EstimatesSTN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
STN Yearly EPS VS EstimatesSTN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

3

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 RankSector Rank
PE 30.57
Fwd PE 24.08
STN Price Earnings VS Forward Price EarningsSTN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 RankSector Rank
P/FCF 32.4
EV/EBITDA 17.57
STN Per share dataSTN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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

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 RankSector 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
STN Yearly Dividends per shareSTN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

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%
STN Yearly Income VS Free CF VS DividendSTN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
STN Dividend Payout.STN Dividend Payout, showing the Payout Ratio.STN Dividend Payout.PayoutRetained Earnings

STANTEC INC

NYSE:STN (5/28/2025, 8:04:01 PM)

After market: 103.95 0 (0%)

103.95

+0.53 (+0.51%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)05-14 2025-05-14/amc
Earnings (Next)08-05 2025-08-05/amc
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 RankSector Rank
Dividend Yield 0.64%
Yearly Dividend0.6
Dividend Growth(5Y)7.51%
DP21.32%
Div Incr Years1
Div Non Decr Years1
Ex-Date06-30 2025-06-30 (0.225)
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 RankSector 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 RankSector 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 RankSector 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%