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SNC

SNC-Lavalin GroupTSX:SNC Stock Report

Market Cap

CA$6.5b

7D

-5.3%

1Y

70.3%

Updated

23 Sep, 2021

Data

Company Financials +
SNC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends0/6

SNC Overview

SNC-Lavalin Group Inc. operates as an integrated professional services and project management company.

SNC-Lavalin Group Competitors

WSP Global

TSX:WSP

CA$18.5b

Aecon Group

TSX:ARE

CA$1.2b

General Electric

NYSE:GE

US$108.2b

Iberdrola

BME:IBE

€57.4b

Price History & Performance

Summary of all time highs, changes and price drops for SNC-Lavalin Group
Historical stock prices
Current Share PriceCA$36.10
52 Week HighCA$17.50
52 Week LowCA$38.25
Beta1.5
1 Month Change5.46%
3 Month Change7.63%
1 Year Change70.28%
3 Year Change-32.36%
5 Year Change-29.35%
Change since IPO2,665.11%

Recent News & Updates

Sep 02
Is There An Opportunity With SNC-Lavalin Group Inc.'s (TSE:SNC) 48% Undervaluation?

Is There An Opportunity With SNC-Lavalin Group Inc.'s (TSE:SNC) 48% Undervaluation?

Today we will run through one way of estimating the intrinsic value of SNC-Lavalin Group Inc. ( TSE:SNC ) by estimating...

Aug 11
Here's Why SNC-Lavalin Group (TSE:SNC) Can Afford Some Debt

Here's Why SNC-Lavalin Group (TSE:SNC) Can Afford Some Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Jun 01
Is SNC-Lavalin Group Inc. (TSE:SNC) Trading At A 47% Discount?

Is SNC-Lavalin Group Inc. (TSE:SNC) Trading At A 47% Discount?

Today we will run through one way of estimating the intrinsic value of SNC-Lavalin Group Inc. ( TSE:SNC ) by estimating...

Shareholder Returns

SNCCA ConstructionCA Market
7D-5.3%-1.3%-1.0%
1Y70.3%75.4%31.4%

Return vs Industry: SNC underperformed the Canadian Construction industry which returned 74.9% over the past year.

Return vs Market: SNC exceeded the Canadian Market which returned 32.3% over the past year.

Price Volatility

Is SNC's price volatile compared to industry and market?
SNC volatility
SNC Beta1.5
Industry Beta1.14
Market Beta1

Stable Share Price: SNC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SNC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191137,584Ian Edwardshttps://www.snclavalin.com

SNC-Lavalin Group Inc. operates as an integrated professional services and project management company. It operates through six segments: Engineering, Design, and Project Management (EDPM); Nuclear; Infrastructure Services; Resources; Infrastructure EPC (Engineering, Procurement, and Construction) Projects; and Capital. The EDPM segment provides consultancy, engineering, design, and project management services for the transportation, civil infrastructure, aerospace, defense and security, and technology sectors.

SNC-Lavalin Group Fundamentals Summary

How do SNC-Lavalin Group's earnings and revenue compare to its market cap?
SNC fundamental statistics
Market CapCA$6.48b
Earnings (TTM)-CA$234.82m
Revenue (TTM)CA$7.10b

0.9x

P/S Ratio

-27.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNC income statement (TTM)
RevenueCA$7.10b
Cost of RevenueCA$6.91b
Gross ProfitCA$190.23m
ExpensesCA$425.05m
Earnings-CA$234.82m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.34
Gross Margin2.68%
Net Profit Margin-3.31%
Debt/Equity Ratio66.2%

How did SNC perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

-6%

Payout Ratio

Valuation

Is SNC-Lavalin Group undervalued compared to its fair value and its price relative to the market?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNC (CA$36.1) is trading below our estimate of fair value (CA$68.03)

Significantly Below Fair Value: SNC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SNC is unprofitable, so we can't compare its PE Ratio to the North American Construction industry average.

PE vs Market: SNC is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SNC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SNC's PB Ratio (2.3x) is in line with the CA Construction industry average.


Future Growth

How is SNC-Lavalin Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

106.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: SNC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SNC's is expected to become profitable in the next 3 years.

Revenue vs Market: SNC's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: SNC's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SNC's Return on Equity is forecast to be low in 3 years time (12.5%).


Past Performance

How has SNC-Lavalin Group performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNC is currently unprofitable.

Growing Profit Margin: SNC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SNC is unprofitable, but has reduced losses over the past 5 years at a rate of 11.5% per year.

Accelerating Growth: Unable to compare SNC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SNC is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (53.2%).


Return on Equity

High ROE: SNC has a negative Return on Equity (-8.21%), as it is currently unprofitable.


Financial Health

How is SNC-Lavalin Group's financial position?


Financial Position Analysis

Short Term Liabilities: SNC's short term assets (CA$3.7B) do not cover its short term liabilities (CA$3.9B).

Long Term Liabilities: SNC's short term assets (CA$3.7B) exceed its long term liabilities (CA$3.2B).


Debt to Equity History and Analysis

Debt Level: SNC's debt to equity ratio (66.2%) is considered high.

Reducing Debt: SNC's debt to equity ratio has increased from 30.6% to 66.2% over the past 5 years.

Debt Coverage: SNC's debt is not well covered by operating cash flow (2.8%).

Interest Coverage: Insufficient data to determine if SNC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is SNC-Lavalin Group current dividend yield, its reliability and sustainability?

0.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SNC's dividend (0.22%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.65%).

High Dividend: SNC's dividend (0.22%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).


Stability and Growth of Payments

Stable Dividend: SNC is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: SNC is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SNC is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SNC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Ian Edwards (58 yo)

2.25yrs

Tenure

CA$8,021,998

Compensation

Mr. Ian L. Edwards has been President of SNC-Lavalin Group Inc since October 31, 2019 and has been its Chief Executive Officer and Director since June 11, 2019. He was Chief Operating Officer of SNC-Lavali...


CEO Compensation Analysis

Compensation vs Market: Ian's total compensation ($USD6.33M) is above average for companies of similar size in the Canadian market ($USD3.61M).

Compensation vs Earnings: Ian's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SNC's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: SNC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SNC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SNC-Lavalin Group Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: SNC-Lavalin Group Inc.
  • Ticker: SNC
  • Exchange: TSX
  • Founded: 1911
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CA$6.483b
  • Shares outstanding: 175.55m
  • Website: https://www.snclavalin.com

Number of Employees


Location

  • SNC-Lavalin Group Inc.
  • 455 René-Lévesque Boulevard West
  • Montreal
  • Quebec
  • H2Z 1Z3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:59
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.