STANTEC INC (STN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STN - CA85472N1096 - Common Stock
96.56 USD
+0.32 (+0.33%)
96.33 USD
-0.23 (-0.24%)
Taking everything into account, STN scores 6 out of 10 in our fundamental rating. STN was compared to 55 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make STN a good candidate 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.
In the past 5 years STN has always been profitable.
Each year in the past 5 years STN had a positive operating cash flow.
1.2 Ratios
STN has a Return On Assets of 5.95%. This is in the better half of the industry: STN outperforms 65.45% of its industry peers.
STN has a Return On Equity of 14.97%. This is in the better half of the industry: STN outperforms 61.82% of its industry peers.
STN's Return On Invested Capital of 9.44% is fine compared to the rest of the industry. STN outperforms 69.09% 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 17.30%.
The last Return On Invested Capital (9.44%) for STN is above the 3 year average (8.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 14.97% | ||
| ROIC | 9.44% |
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 (7.63%) than 76.36% of its industry peers.
STN's Profit Margin has improved in the last couple of years.
STN has a better Operating Margin (11.23%) than 80.00% of its industry peers.
In the last couple of years the Operating Margin of STN has grown nicely.
STN has a better Gross Margin (54.46%) than 96.36% 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 | 11.23% | ||
| PM (TTM) | 7.63% | ||
| GM | 54.46% |
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 below the Cost of Capital (WACC), which means it is destroying 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.
The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.34 indicates that STN is not in any danger for bankruptcy at the moment.
STN has a Altman-Z score (3.34) which is in line with its industry peers.
The Debt to FCF ratio of STN is 3.36, which is a good value as it means it would take STN, 3.36 years of fcf income to pay off all of its debts.
STN's Debt to FCF ratio of 3.36 is fine compared to the rest of the industry. STN outperforms 70.91% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that STN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, STN perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.99
WACC9.52%
2.3 Liquidity
STN has a Current Ratio of 1.27. This is a normal value and indicates that STN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.27, STN is in line with its industry, outperforming 52.73% of the companies in the same industry.
STN has a Quick Ratio of 1.27. 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 1.27. This is comparable to the rest of the industry: STN outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.64% 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 12.49% in the past year. This is quite good.
The Revenue has been growing by 9.59% on average over the past years. This is quite good.
EPS 1Y (TTM)24.64%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%17.69%
Revenue 1Y (TTM)12.49%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%11.84%
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 16.04% yearly.
Based on estimates for the next years, STN will show a quite strong growth in Revenue. The Revenue will grow by 12.65% on average per year.
EPS Next Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.31, STN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, STN is valued a bit cheaper than 70.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of STN to the average of the S&P500 Index (26.31), we can say STN is valued inline with the index average.
The Price/Forward Earnings ratio is 21.88, which indicates a rather expensive current valuation of STN.
70.91% of the companies in the same industry are more expensive than STN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.59. STN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.31 | ||
| Fwd PE | 21.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STN is valued a bit cheaper than the industry average as 61.82% of the companies are valued more expensively.
STN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STN is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.22 | ||
| EV/EBITDA | 17.17 |
4.3 Compensation for Growth
STN's 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 16.04% in the coming years.
PEG (NY)1.22
PEG (5Y)1.54
EPS Next 2Y18.28%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.68%, which is pretty low.
STN's Dividend Yield is rather good when compared to the industry average which is at 1.73. STN pays more dividend than 92.73% of the companies in the same industry.
With a Dividend Yield of 0.68, STN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of STN is nicely growing with an annual growth rate of 7.51%!
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
STN pays out 20.52% 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.
DP20.52%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
96.56
+0.32 (+0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners75.57%
Inst Owner Change-2.07%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap11.01B
Revenue(TTM)6.33B
Net Income(TTM)483.50M
Analysts78.67
Price Target121.45 (25.78%)
Short Float %0.82%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.59
Dividend Growth(5Y)7.51%
DP20.52%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.06%
Min EPS beat(2)-1.14%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)3.07%
Min EPS beat(4)-1.14%
Max EPS beat(4)10.41%
EPS beat(8)4
Avg EPS beat(8)1.56%
EPS beat(12)8
Avg EPS beat(12)3.94%
EPS beat(16)10
Avg EPS beat(16)3.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.53%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-1.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)2.67%
Revenue beat(8)2
Avg Revenue beat(8)-0.57%
Revenue beat(12)6
Avg Revenue beat(12)0.58%
Revenue beat(16)9
Avg Revenue beat(16)0.54%
PT rev (1m)2.14%
PT rev (3m)1.8%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-1.25%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.31 | ||
| Fwd PE | 21.88 | ||
| P/S | 2.44 | ||
| P/FCF | 19.22 | ||
| P/OCF | 18.04 | ||
| P/B | 4.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.17 |
EPS(TTM)3.67
EY3.8%
EPS(NY)4.41
Fwd EY4.57%
FCF(TTM)5.02
FCFY5.2%
OCF(TTM)5.35
OCFY5.54%
SpS39.53
BVpS20.16
TBVpS-3.88
PEG (NY)1.22
PEG (5Y)1.54
Graham Number40.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 14.97% | ||
| ROCE | 12.22% | ||
| ROIC | 9.44% | ||
| ROICexc | 10.07% | ||
| ROICexgc | 33.73% | ||
| OM | 11.23% | ||
| PM (TTM) | 7.63% | ||
| GM | 54.46% | ||
| FCFM | 12.71% |
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%
ROICexgc growth 3Y14.28%
ROICexgc 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-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 16.32% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 8.95 | ||
| Cash Conversion | 82.99% | ||
| Profit Quality | 166.47% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.34 |
F-Score6
WACC9.52%
ROIC/WACC0.99
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)24.64%
EPS 3Y22.5%
EPS 5Y17.12%
EPS Q2Q%17.69%
EPS Next Y21.54%
EPS Next 2Y18.28%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue 1Y (TTM)12.49%
Revenue growth 3Y17.29%
Revenue growth 5Y9.59%
Sales Q2Q%11.84%
Revenue Next Year12.46%
Revenue Next 2Y11.5%
Revenue Next 3Y12.65%
Revenue Next 5YN/A
EBIT growth 1Y34.51%
EBIT growth 3Y23.05%
EBIT growth 5Y11.52%
EBIT Next Year66.9%
EBIT Next 3Y26.65%
EBIT Next 5YN/A
FCF growth 1Y109.94%
FCF growth 3Y12.8%
FCF growth 5Y4.96%
OCF growth 1Y74.73%
OCF growth 3Y14.96%
OCF growth 5Y5.91%
STANTEC INC / STN FAQ
Can you provide the ChartMill fundamental rating for STANTEC INC?
ChartMill assigns a fundamental rating of 6 / 10 to STN.
What is the valuation status for STN stock?
ChartMill assigns a valuation rating of 5 / 10 to STANTEC INC (STN). This can be considered as Fairly Valued.
Can you provide the profitability details for STANTEC INC?
STANTEC INC (STN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of STANTEC INC (STN) stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN) is 26.31 and the Price/Book (PB) ratio is 4.79.
Is the dividend of STANTEC INC sustainable?
The dividend rating of STANTEC INC (STN) is 5 / 10 and the dividend payout ratio is 20.52%.