STANTEC INC (STN) Stock Fundamental Analysis
NYSE:STN - CA85472N1096 - Common Stock
108.56 USD
+0.32 (+0.3%)
We assign a fundamental rating of 6 out of 10 to STN. STN was compared to 53 industry peers in the Construction & Engineering industry. STN scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, STN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year STN was profitable.
STN had a positive operating cash flow in the past year.
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
STN has a Return On Assets of 6.28%. This is in the better half of the industry: STN outperforms 71.70% of its industry peers.
Looking at the Return On Equity, with a value of 14.83%, STN is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
STN has a better Return On Invested Capital (10.25%) than 69.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STN is significantly below the industry average of 17.21%.
The 3 year average ROIC (8.26%) for STN is below the current ROIC(10.25%), indicating increased profibility in the last year.
| 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
STN has a Profit Margin of 7.10%. This is in the better half of the industry: STN outperforms 77.36% of its industry peers.
In the last couple of years the Profit Margin of STN has grown nicely.
STN's Operating Margin of 10.71% is fine compared to the rest of the industry. STN outperforms 75.47% of its industry peers.
STN's Operating Margin has improved in the last couple of years.
STN has a better Gross Margin (54.44%) than 98.11% 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 | 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.
The number of shares outstanding for STN remains at a similar level compared to 1 year ago.
The number of shares outstanding for STN has been increased compared to 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 4.12. This indicates that STN is financially healthy and has little risk of bankruptcy at the moment.
STN's Altman-Z score of 4.12 is fine compared to the rest of the industry. STN outperforms 69.81% of its industry peers.
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 better Debt to FCF ratio (3.26) than 62.26% 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.
With a Debt to Equity ratio value of 0.60, STN perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 4.12 |
ROIC/WACC1.07
WACC9.55%
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 52.83% of its industry peers.
A Quick Ratio of 1.29 indicates that STN should not have too much problems paying its short term obligations.
STN has a Quick ratio of 1.29. This is comparable to the rest of the industry: STN outperforms 54.72% 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.
The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
STN shows a decrease in Revenue. In the last year, the revenue decreased by -9.42%.
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
The Earnings Per Share is expected to grow by 15.68% 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 12.52% yearly.
EPS Next Y21.77%
EPS Next 2Y18.1%
EPS Next 3Y15.68%
EPS Next 5YN/A
Revenue Next Year12.6%
Revenue Next 2Y11.46%
Revenue Next 3Y12.52%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.32, which means the current valuation is very expensive for STN.
Compared to the rest of the industry, the Price/Earnings ratio of STN is on the same level as its industry peers.
STN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.90, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.22, which indicates a rather expensive current valuation of STN.
The rest of the industry has a similar Price/Forward Earnings ratio as STN.
When comparing the Price/Forward Earnings ratio of STN to the average of the S&P500 Index (22.52), we can say STN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.32 | ||
| Fwd PE | 24.22 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.22 | ||
| EV/EBITDA | 19.26 |
4.3 Compensation for Growth
The 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 15.68% in the coming years.
PEG (NY)1.39
PEG (5Y)1.77
EPS Next 2Y18.1%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, 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 1.58. STN pays more dividend than 88.68% of the companies in the same industry.
With a Dividend Yield of 0.59, STN pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
On average, the dividend of STN grows each year by 7.51%, which is quite nice.
STN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.51%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
STN pays out 22.30% 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.
DP22.3%
EPS Next 2Y18.1%
EPS Next 3Y15.68%
NYSE:STN (9/3/2025, 3:50:39 PM)
108.56
+0.32 (+0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners76.18%
Inst Owner Change-2.4%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap12.38B
Analysts78.67
Price Target119.3 (9.89%)
Short Float %0.64%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.6
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)4.36%
PT rev (3m)13.5%
EPS NQ rev (1m)-0.93%
EPS NQ rev (3m)8.51%
EPS NY rev (1m)2.35%
EPS NY rev (3m)2.35%
Revenue NQ rev (1m)-1.48%
Revenue NQ rev (3m)3.29%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.32 | ||
| Fwd PE | 24.22 | ||
| P/S | 2.77 | ||
| P/FCF | 27.22 | ||
| P/OCF | 24.37 | ||
| P/B | 5.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.26 |
EPS(TTM)3.58
EY3.3%
EPS(NY)4.48
Fwd EY4.13%
FCF(TTM)3.99
FCFY3.67%
OCF(TTM)4.45
OCFY4.1%
SpS39.12
BVpS18.73
TBVpS-1.24
PEG (NY)1.39
PEG (5Y)1.77
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%
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-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 | 4.12 |
F-Score5
WACC9.55%
ROIC/WACC1.07
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 Y21.77%
EPS Next 2Y18.1%
EPS Next 3Y15.68%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.42%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%6.92%
Revenue Next Year12.6%
Revenue Next 2Y11.46%
Revenue Next 3Y12.52%
Revenue Next 5YN/A
EBIT growth 1Y-0.27%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year66.46%
EBIT Next 3Y26.93%
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%