STANTEC INC (STN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:STN • CA85472N1096
101.01 USD
+0.48 (+0.48%)
At close: Jan 29, 2026
101.01 USD
0 (0%)
After Hours: 1/29/2026, 8:04:00 PM
STN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. While STN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. STN is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
- Each year in the past 5 years STN has been profitable.
- In the past 5 years STN always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.95%, STN is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 14.97%, STN is in line with its industry, outperforming 60.00% of the companies in the same industry.
- With a decent Return On Invested Capital value of 9.44%, STN is doing good in the industry, outperforming 67.27% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for STN is significantly below the industry average of 15.97%.
- The 3 year average ROIC (8.26%) for STN is below the current ROIC(9.44%), indicating increased profibility in the last year.
| 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
- The Profit Margin of STN (7.63%) is better than 74.55% of its industry peers.
- In the last couple of years the Profit Margin of STN has grown nicely.
- STN has a Operating Margin of 11.23%. This is in the better half of the industry: STN outperforms 76.36% of its industry peers.
- STN's Operating Margin has improved in the last couple of years.
- STN has a Gross Margin of 54.46%. This is amongst the best in the industry. STN outperforms 96.36% of its industry peers.
- STN's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STN is destroying 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.
- The debt/assets ratio for STN has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.36 indicates that STN is not in any danger for bankruptcy at the moment.
- STN has a Altman-Z score of 3.36. This is comparable to the rest of the industry: STN outperforms 60.00% of its industry peers.
- STN has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as STN would need 3.36 years to pay back of all of its debts.
- The Debt to FCF ratio of STN (3.36) is better than 72.73% of its industry peers.
- STN has a Debt/Equity ratio of 0.72. This is a neutral value indicating STN is somewhat dependend on debt financing.
- STN has a Debt to Equity ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.99
WACC9.51%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that STN should not have too much problems paying its short term obligations.
- The Current ratio of STN (1.27) is comparable to the rest of the 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.
- Looking at the Quick ratio, with a value of 1.27, STN is in line with its industry, outperforming 50.91% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing by 17.12% on average over the past years. This is quite good.
- Looking at the last year, STN shows a quite strong growth in Revenue. The Revenue has grown by 12.49% in the last year.
- 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)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
- Based on estimates for the next years, STN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.33% on average per year.
- The Revenue is expected to grow by 9.23% on average over the next years. This is quite good.
EPS Next Y20.33%
EPS Next 2Y17.31%
EPS Next 3Y15.33%
EPS Next 5YN/A
Revenue Next Year12%
Revenue Next 2Y11%
Revenue Next 3Y9.23%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 26.44, the valuation of STN can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of STN indicates a somewhat cheap valuation: STN is cheaper than 76.36% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of STN to the average of the S&P500 Index (28.39), we can say STN is valued inline with the index average.
- A Price/Forward Earnings ratio of 22.41 indicates a rather expensive valuation of STN.
- Based on the Price/Forward Earnings ratio, STN is valued cheaply inside the industry as 83.64% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. STN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.44 | ||
| Fwd PE | 22.41 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STN is valued a bit cheaper than 61.82% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, STN is valued a bit cheaper than 78.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.36 | ||
| EV/EBITDA | 17.33 |
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 15.33% in the coming years.
PEG (NY)1.3
PEG (5Y)1.54
EPS Next 2Y17.31%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.64%, STN is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.44, STN pays a better dividend. On top of this STN pays more dividend than 92.73% of the companies listed in the same industry.
- With a Dividend Yield of 0.64, STN pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector 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 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.
- The dividend of STN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.52%
EPS Next 2Y17.31%
EPS Next 3Y15.33%
STANTEC INC / STN FAQ
Can you provide the ChartMill fundamental rating for STANTEC INC?
ChartMill assigns a fundamental rating of 6 / 10 to STN.
Can you provide the valuation status for STANTEC INC?
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.
Can you provide the PE and PB ratios for STN stock?
The Price/Earnings (PE) ratio for STANTEC INC (STN) is 26.44 and the Price/Book (PB) ratio is 4.82.
How financially healthy is STANTEC INC?
The financial health rating of STANTEC INC (STN) is 5 / 10.