TSX:SNC

Stock Analysis Report

Executive Summary

SNC-Lavalin Group Inc. provides consulting, design, engineering, construction, and operation and maintenance services worldwide.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has SNC-Lavalin Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SNC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

SNC

-2.3%

CA Construction

0.2%

CA Market


1 Year Return

-6.4%

SNC

11.1%

CA Construction

4.6%

CA Market

Return vs Industry: SNC underperformed the Canadian Construction industry which returned 11.1% over the past year.

Return vs Market: SNC underperformed the Canadian Market which returned 4.6% over the past year.


Shareholder returns

SNCIndustryMarket
7 Day-2.5%-2.3%0.2%
30 Day4.2%0.8%0.5%
90 Day37.9%15.0%4.0%
1 Year-5.6%-6.4%13.0%11.1%7.9%4.6%
3 Year-37.3%-40.4%13.6%6.8%17.8%7.2%
5 Year-9.1%-17.3%55.1%37.4%33.7%14.2%

Price Volatility Vs. Market

How volatile is SNC-Lavalin Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

1.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SNC (CA$32.55) is trading above our estimate of fair value (CA$19.29)

Significantly Below Fair Value: SNC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SNC is unprofitable, so we can't compare its PE Ratio to the 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 is good value based on its PB Ratio (1.5x) compared to the CA Construction industry average (2.3x).


Next Steps

Future Growth

How is SNC-Lavalin Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

42.2%

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 (1.4%).

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 (-5.8% per year).

High Growth Revenue: SNC's revenue is forecast to decline over the next 3 years (-5.8% 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 (9.2%).


Next Steps

Past Performance

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

-66.9%

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, and losses have increased over the past 5 years at a rate of -66.9% 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 (4.6%).


Return on Equity

High ROE: SNC has a negative Return on Equity (-25.34%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SNC-Lavalin Group's financial position?


Financial Position Analysis

Short Term Liabilities: SNC's short term assets (CA$5.3B) exceed its short term liabilities (CA$4.3B).

Long Term Liabilities: SNC's short term assets (CA$5.3B) exceed its long term liabilities (CA$3.4B).


Debt to Equity History and Analysis

Debt Level: SNC's debt to equity ratio (53.4%) is considered high.

Reducing Debt: SNC's debt to equity ratio has reduced from 191.5% to 53.4% over the past 5 years.


Balance Sheet

Inventory Level: SNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: SNC's debt is covered by short term assets (assets are 2.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SNC has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: SNC has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.24%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%2.0%markettop25%5.4%industryaverage1.3%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: SNC's dividend (0.25%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.95%).

High Dividend: SNC's dividend (0.25%) is low compared to the top 25% of dividend payers in the Canadian market (5.36%).


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?

3.8yrs

Average management tenure


CEO

Ian Edwards 0

0.7yrs

Tenure

CA$2,536,511

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 ($USD1.91M) is below average for companies of similar size in the Canadian market ($USD2.81M).

Compensation vs Earnings: Ian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ian Edwards
President0.7yrsCA$2.54m0.0020% CA$115.9k
Sylvain Girard
Executive VP & CFO3.8yrsCA$1.79m0.0032% CA$184.0k
Alexander Taylor
President of Nuclear Sector5.9yrsCA$2.22m0.012% CA$683.6k
Christian Brown
President of Resources Sector6.1yrsCA$2.66mno data
Pierre Mailhot
Vice President of Administration0yrsno datano data
Denis Jasmin
Vice President of Investor Relations0yrsno datano data
Charlene Ripley
Executive VP & General Counsel0.3yrsno datano data
Daniela Pizzuto
Director of External Communications0yrsno datano data
Erik Ryan
Executive Vice-President of Marketing6.3yrsno data0.0089% CA$517.7k
James Cullens
Executive Vice President of Human Resources2.3yrsno datano data

3.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: SNC's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ian Edwards
President0.7yrsCA$2.54m0.0020% CA$115.9k
Jacques Bougie
Independent Director6.8yrsCA$257.13k0.0011% CA$66.4k
Benita Warmbold
Independent Director2.8yrsCA$242.30k0.0017% CA$99.6k
Alain Rhéaume
Independent Director6.8yrsCA$246.80kno data
Jean Raby
Independent Director4.3yrsCA$237.57k0.0011% CA$66.4k
Catherine Hughes
Independent Director3.3yrsCA$224.21kno data
Kevin Lynch
Independent Chairman2.1yrsCA$414.06kno data
Steven Newman
Independent Director4.3yrsCA$258.04k0.0028% CA$163.0k
Zin Smati
Independent Director3.8yrsCA$233.89k0.00066% CA$38.4k
Eric Siegel
Independent Director8.1yrsCA$249.58k0.00057% CA$33.2k

4.0yrs

Average Tenure

61yo

Average Age

Experienced Board: SNC's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

SNC-Lavalin Group Inc.'s company bio, 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$5.823b
  • Shares outstanding: 175.55m
  • Website: https://www.snclavalin.com/en

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNCTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 1986
LAVDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1986
SNCA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 1986

Biography

SNC-Lavalin Group Inc. provides consulting, design, engineering, construction, and operation and maintenance services worldwide. It operates through Mining & Metallurgy; Oil & Gas; Nuclear; Clean Power; Infrastructure; Engineering, Design and Project Management; and Capital segments. The company offers solutions for projects in the aluminum, gold, copper, iron ore, nickel, fertilizer, sulphur, and other projects, as well as commodities related to rechargeable batteries for cars, mobile phones, and other electronic devices. It also undertakes oil and gas projects in the upstream, midstream, downstream, and supporting infrastructure sectors, as well as supports clients in the asset lifecycle from front-end evaluation through decommissioning. In addition, the company supports clients across the nuclear life cycle with the spectrum of services from consultancy, field services, technology services, spare parts, reactor support and decommissioning, and waste management, as well as engineering, procurement, and construction management services. Further, it delivers hydroelectric transmission and distribution projects; and undertakes infrastructure projects in various sectors consisting of mass transit, heavy rail, roads, bridges, airports, ports and harbors, facilities architecture and engineering, industrial, geotechnical engineering, materials testing, and water infrastructure, as well as operations and maintenance projects. Additionally, the company provides engineering, design, and project management services for projects in transportation, infrastructure, aerospace, defense, and security and technology sectors; and invests in various infrastructure assets, such as bridges and highways, mass transit systems, power facilities, energy infrastructure, and water treatment plants. SNC-Lavalin Group Inc. was founded in 1911 and is headquartered in Montreal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:43
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.