TSX:SNC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential with worrying balance sheet.

Risks

  • SNC-Lavalin Group has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-1.5%

TSX:SNC

-1.4%

CA Construction

-1.1%

CA Market


1 Year Return

-69.2%

TSX:SNC

-32.2%

CA Construction

-6.4%

CA Market

SNC underperformed the Construction industry which returned -31.8% over the past year.

SNC underperformed the Market in Canada which returned -6.1% over the past year.


Share holder returns

SNCIndustryMarket
7 Day-1.5%-1.4%-1.1%
30 Day-21.7%-11.4%-3.6%
90 Day-35.9%-13.3%-3.4%
1 Year-68.8%-69.2%-30.9%-32.2%-3.1%-6.4%
3 Year-69.1%-70.7%-17.4%-22.7%13.1%3.1%
5 Year-67.3%-70.4%-9.7%-20.2%10.8%-4.7%

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 based on future cash flows and its price relative to the stock market?

2.62x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

SNC-Lavalin Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

SNC-Lavalin Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

SNC-Lavalin Group is loss making, we can't compare its value to the CA Construction industry average.

SNC-Lavalin Group is loss making, we can't compare the value of its earnings to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for SNC-Lavalin Group, we can't assess if its growth is good value.


Price Based on Value of Assets

SNC-Lavalin Group is overvalued based on assets compared to the CA Construction industry average.


Next Steps

Future Growth

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

125.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SNC-Lavalin Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

SNC-Lavalin Group's earnings are expected to grow significantly at over 20% yearly.

SNC-Lavalin Group's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.

SNC-Lavalin Group's earnings growth is expected to exceed the Canada market average.

SNC-Lavalin Group's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

SNC-Lavalin Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-62.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SNC-Lavalin Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare SNC-Lavalin Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare SNC-Lavalin Group's 1-year growth to the North America Construction industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if SNC-Lavalin Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if SNC-Lavalin Group has efficiently used its assets last year compared to the CA Construction industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if SNC-Lavalin Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is SNC-Lavalin Group's financial position?


Financial Position Analysis

SNC-Lavalin Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

SNC-Lavalin Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

SNC-Lavalin Group's level of debt (403.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (74.4% vs 403.3% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on SNC-Lavalin Group's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

0.89%

Expected Dividend Yield


Dividend Yield and Payments Analysis

SNC-Lavalin Group's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.03%).

SNC-Lavalin Group's dividend is below the markets top 25% of dividend payers in Canada (5.93%).

SNC-Lavalin Group is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.

SNC-Lavalin Group is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of SNC-Lavalin Group's dividends as it is not paying a notable one for Canada.


Future Payout to Shareholders

No need to calculate the sustainability of SNC-Lavalin Group's dividends in 3 years as they are not expected to pay a notable one for Canada.


Next Steps

Management

What is the CEO of SNC-Lavalin Group's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Ian Edwards 0

0.2yrs

Tenure

CA$2,536,511

Compensation

Mr. Ian L. Edwards has been Chief Operating Officer of SNC-Lavalin Group Inc. since January 28, 2019. He serves as an Interim President, Chief Executive Officer and Director at SNC-Lavalin Group Inc. since ...


CEO Compensation Analysis

Ian's remuneration is about average for companies of similar size in Canada.

Ian's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.4yrs

Average Tenure

59yo

Average Age

The average tenure for the SNC-Lavalin Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.5yrs

Average Tenure

61yo

Average Age

The tenure for the SNC-Lavalin Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Hartland J. Paterson

    Executive VP & General Counsel

    • Tenure: 3.9yrs
  • Sandy Taylor (61yo)

    President of Nuclear Sector

    • Tenure: 5.4yrs
    • Compensation: CA$2.22m
  • Erik Ryan

    Executive Vice-President of Marketing

    • Tenure: 5.8yrs
  • Pierre Mailhot

    Vice President of Administration

    • Tenure: 0.0yrs
  • Neil Bruce (59yo)

    Advisor to the Board

    • Tenure: 6.6yrs
    • Compensation: CA$5.45m
  • Denis Jasmin

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Chris Brown (49yo)

    President of Resources Sector

    • Tenure: 5.6yrs
    • Compensation: CA$2.66m
  • Ian Edwards

    Interim President

    • Tenure: 0.2yrs
    • Compensation: CA$2.54m
  • Sylvain Girard

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: CA$1.79m
  • Daniela Pizzuto

    Director of External Communications

    • Tenure: 0.0yrs

Board Members

  • Jacques Bougie (71yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: CA$257.13k
  • Benita Warmbold (60yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: CA$242.30k
  • Alain Rhéaume (67yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: CA$246.80k
  • Jean Raby (54yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: CA$237.57k
  • Catherine Hughes (57yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: CA$224.21k
  • Kevin Lynch (68yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: CA$414.06k
  • Steven Newman (54yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$258.04k
  • Zin Smati (61yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: CA$233.89k
  • Eric Siegel (65yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: CA$249.58k
  • Ian Edwards

    Interim President

    • Tenure: 0.2yrs
    • Compensation: CA$2.54m

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$2.891b
  • 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; In ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 23:46
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.