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 49 industry peers in the Construction & Engineering industry. STN scores excellent on profitability, but there are some minor concerns on its financial health. STN is not overvalued while it is showing excellent growth. This is an interesting combination. This makes STN very considerable 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.
STN had positive earnings in each of the past 5 years.
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 73.47% of its industry peers.
Looking at the Return On Equity, with a value of 14.97%, STN is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.01%, STN is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STN is significantly below the industry average of 16.67%.
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 better Profit Margin (6.09%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of STN has grown nicely.
STN has a better Operating Margin (9.78%) than 75.51% of its industry peers.
In the last couple of years the Operating Margin of STN has grown nicely.
Looking at the Gross Margin, with a value of 54.42%, STN belongs to the top 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 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
STN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.33 indicates that STN is not in any danger for bankruptcy at the moment.
STN's Altman-Z score of 4.33 is fine compared to the rest of the industry. STN outperforms 71.43% 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 of 4.05. This is in the better half of the industry: STN outperforms 63.27% 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 (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.17
WACC9.4%
2.3 Liquidity
STN has a Current 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 Current ratio (1.29) which 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.
STN has a Quick ratio of 1.29. This is comparable to the rest of the industry: STN outperforms 59.18% 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 21.82%, which is quite impressive.
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.
The Revenue has grown by 42.47% in the past year. This is a very strong growth!
Measured over the past years, STN shows a quite strong growth in Revenue. The Revenue has been growing by 9.59% on average per year.
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
Based on estimates for the next years, STN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.48% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 32.69, 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 61.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.52, STN is valued at the same level.
A Price/Forward Earnings ratio of 25.76 indicates a quite expensive valuation of STN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STN is on the same level as its industry peers.
STN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 25.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STN.
STN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.66 | ||
| EV/EBITDA | 18.55 |
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 14.48% in the coming years.
PEG (NY)1.72
PEG (5Y)1.91
EPS Next 2Y15.86%
EPS Next 3Y14.48%
5. Dividend
5.1 Amount
STN has a yearly dividend return of 0.60%, which is pretty low.
STN's Dividend Yield is rather good when compared to the industry average which is at 1.62. STN pays more dividend than 87.76% of the companies in the same industry.
With a Dividend Yield of 0.60, STN pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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.
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.
The dividend of STN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.32%
EPS Next 2Y15.86%
EPS Next 3Y14.48%
111.81
+1.38 (+1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners76.18%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap12.75B
Analysts78.67
Price Target112.54 (0.65%)
Short Float %0.61%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)0.09%
PT rev (3m)12.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 25.76 | ||
| P/S | 2.41 | ||
| P/FCF | 34.66 | ||
| P/OCF | 28.97 | ||
| P/B | 5.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.55 |
EPS(TTM)3.42
EY3.06%
EPS(NY)4.34
Fwd EY3.88%
FCF(TTM)3.23
FCFY2.88%
OCF(TTM)3.86
OCFY3.45%
SpS46.3
BVpS18.84
TBVpS-1.24
PEG (NY)1.72
PEG (5Y)1.91
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 | 4.33 |
F-Score7
WACC9.4%
ROIC/WACC1.17
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%