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SNC-Lavalin Group

TSX:SNC
Snowflake Description

Moderate growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SNC
TSX
CA$5B
Market Cap
  1. Home
  2. CA
  3. Capital Goods
Company description

SNC-Lavalin Group Inc. provides consulting, design, engineering, construction, and operation and maintenance services worldwide. The last earnings update was 55 days ago. More info.


Add to Portfolio Compare Print
  • SNC-Lavalin Group has significant price volatility in the past 3 months.
SNC Share Price and Events
7 Day Returns
-1.8%
TSX:SNC
-2.3%
CA Construction
-0.7%
CA Market
1 Year Returns
-55.4%
TSX:SNC
-24.8%
CA Construction
-2.2%
CA Market
SNC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SNC-Lavalin Group (SNC) -1.8% 1.1% -23.8% -55.4% -51.6% -54.1%
CA Construction -2.3% 0.2% -8.5% -24.8% -4.7% -11.1%
CA Market -0.7% 0.2% 0.3% -2.2% 11.9% 0.9%
1 Year Return vs Industry and Market
  • SNC underperformed the Construction industry which returned -24.8% over the past year.
  • SNC underperformed the Market in Canada which returned -2.2% over the past year.
Price Volatility
SNC
Industry
5yr Volatility vs Market

Value

 Is SNC-Lavalin Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SNC-Lavalin Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SNC-Lavalin Group.

TSX:SNC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:SNC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.015 (1 + (1- 26.5%) (102.23%))
1.521
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.52
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.521 * 5.96%)
11.01%

Discounted Cash Flow Calculation for TSX:SNC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SNC-Lavalin Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:SNC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 11.01%)
2019 -112.71 Analyst x3 -101.53
2020 429.76 Analyst x5 348.73
2021 520.00 Analyst x1 380.11
2022 592.26 Est @ 13.9% 389.99
2023 653.32 Est @ 10.31% 387.53
2024 704.30 Est @ 7.8% 376.33
2025 746.87 Est @ 6.05% 359.50
2026 782.84 Est @ 4.82% 339.44
2027 813.80 Est @ 3.96% 317.87
2028 841.09 Est @ 3.35% 295.94
Present value of next 10 years cash flows CA$3,093.92
TSX:SNC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$841.09 × (1 + 1.95%) ÷ (11.01% – 1.95%)
CA$9,460.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$9,460.69 ÷ (1 + 11.01%)10
CA$3,328.78
TSX:SNC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$3,093.92 + CA$3,328.78
CA$6,422.70
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$6,422.70 / 175.55
CA$36.59
TSX:SNC Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$36.59
Current discount Discount to share price of CA$25.97
= -1 x (CA$25.97 - CA$36.59) / CA$36.59
29%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SNC-Lavalin Group is available for.
Intrinsic value
29%
Share price is CA$25.97 vs Future cash flow value of CA$36.59
Current Discount Checks
For SNC-Lavalin Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SNC-Lavalin Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SNC-Lavalin Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SNC-Lavalin Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SNC-Lavalin Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SNC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$-8.04
TSX:SNC Share Price ** TSX (2019-06-26) in CAD CA$25.97
Canada Construction Industry PE Ratio Median Figure of 5 Publicly-Listed Construction Companies 26.45x
Canada Market PE Ratio Median Figure of 543 Publicly-Listed Companies 15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SNC-Lavalin Group.

TSX:SNC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SNC Share Price ÷ EPS (both in CAD)

= 25.97 ÷ -8.04

-3.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does SNC-Lavalin Group's expected growth come at a high price?
Raw Data
TSX:SNC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -3.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
100.2%per year
North America Construction Industry PEG Ratio Median Figure of 28 Publicly-Listed Construction Companies 1.11x
Canada Market PEG Ratio Median Figure of 248 Publicly-Listed Companies 1.15x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What value do investors place on SNC-Lavalin Group's assets?
Raw Data
TSX:SNC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$19.65
TSX:SNC Share Price * TSX (2019-06-26) in CAD CA$25.97
Canada Construction Industry PB Ratio Median Figure of 10 Publicly-Listed Construction Companies 1.4x
Canada Market PB Ratio Median Figure of 2,426 Publicly-Listed Companies 1.44x
TSX:SNC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SNC Share Price ÷ Book Value per Share (both in CAD)

= 25.97 ÷ 19.65

1.32x

* Primary Listing of SNC-Lavalin Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SNC-Lavalin Group is good value based on assets compared to the CA Construction industry average.
X
Value checks
We assess SNC-Lavalin Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. SNC-Lavalin Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
100.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SNC-Lavalin Group expected to grow at an attractive rate?
  • SNC-Lavalin Group's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • SNC-Lavalin Group's earnings growth is expected to exceed the Canada market average.
  • SNC-Lavalin Group's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SNC Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SNC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 100.2%
TSX:SNC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 1%
Canada Construction Industry Earnings Growth Rate Market Cap Weighted Average 44.2%
Canada Construction Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:SNC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SNC Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 10,143 680 1
2020-12-31 10,006 788 491 11
2019-12-31 9,875 584 368 11
TSX:SNC Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 10,016 -406 -1,412
2018-12-31 10,084 -304 -1,317
2018-09-30 10,439 185 334
2018-06-30 10,509 -174 317
2018-03-31 9,917 -196 370
2017-12-31 9,335 -236 382
2017-09-30 8,628 -372 331
2017-06-30 8,164 158 271
2017-03-31 8,332 159 223
2016-12-31 8,471 106 256
2016-09-30 8,906 110 303
2016-06-30 9,171 89 484

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SNC-Lavalin Group's earnings are expected to grow significantly at over 20% yearly.
  • SNC-Lavalin Group's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:SNC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from SNC-Lavalin Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SNC Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 2.96 3.36 2.53 4.00
2019-12-31 2.29 2.76 2.02 4.00
TSX:SNC Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 -8.04
2018-12-31 -7.50
2018-09-30 1.90
2018-06-30 1.81
2018-03-31 2.19
2017-12-31 2.35
2017-09-30 2.12
2017-06-30 1.80
2017-03-31 1.49
2016-12-31 1.70
2016-09-30 2.02
2016-06-30 3.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SNC-Lavalin Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SNC-Lavalin Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SNC-Lavalin Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SNC-Lavalin Group's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 CA Construction industry average as it is not currently profitable.
Earnings and Revenue History
SNC-Lavalin Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SNC-Lavalin Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SNC Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 10,015.81 -1,412.28 102.20
2018-12-31 10,084.01 -1,316.90 121.29
2018-09-30 10,439.34 334.18 77.39
2018-06-30 10,509.09 317.02 108.77
2018-03-31 9,916.84 370.39 127.38
2017-12-31 9,334.72 382.04 130.61
2017-09-30 8,628.02 331.26 314.45
2017-06-30 8,163.82 271.02 426.60
2017-03-31 8,331.93 223.14 584.57
2016-12-31 8,470.83 255.53 724.12
2016-09-30 8,905.98 303.20 727.88
2016-06-30 9,170.68 484.06 794.59
2016-03-31 9,318.06 422.06 817.09
2015-12-31 9,586.95 404.34 855.63
2015-09-30 9,758.69 1,501.74 862.85
2015-06-30 9,329.58 1,337.58 859.34
2015-03-31 8,775.68 1,343.13 844.02
2014-12-31 8,238.76 1,333.34 824.22
2014-09-30 7,545.08 279.24 824.48
2014-06-30 7,486.15 146.48 795.96
2014-03-31 7,733.05 76.74 816.36
2013-12-31 7,913.16 35.77 836.59
2013-09-30 8,210.36 37.07 865.74
2013-06-30 8,240.41 223.85 898.24
2013-03-31 8,203.33 293.22 883.32
2012-12-31 8,090.96 305.93 855.46
2012-09-30 7,787.52 288.07 786.05
2012-06-30 7,591.78 298.56 728.46

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • 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.
  • 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.
X
Past performance checks
We assess SNC-Lavalin Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SNC-Lavalin Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is SNC-Lavalin Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SNC-Lavalin Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of SNC-Lavalin Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SNC-Lavalin Group Company Filings, last reported 2 months ago.

TSX:SNC Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,454.90 4,059.46 863.85
2018-12-31 3,655.87 3,668.03 723.82
2018-09-30 4,933.64 3,595.37 913.36
2018-06-30 5,021.99 3,500.06 901.92
2018-03-31 5,060.41 3,353.31 772.44
2017-12-31 5,223.22 3,133.68 786.09
2017-09-30 5,100.73 3,306.23 1,104.04
2017-06-30 4,035.28 656.80 1,109.96
2017-03-31 3,913.85 841.14 1,245.56
2016-12-31 3,896.33 842.95 1,161.11
2016-09-30 3,760.89 896.57 1,521.77
2016-06-30 3,804.39 1,166.62 1,769.07
2016-03-31 3,899.30 1,296.99 2,275.44
2015-12-31 3,903.50 1,277.29 1,731.09
2015-09-30 3,760.68 1,364.07 2,447.54
2015-06-30 3,421.11 1,502.94 1,864.12
2015-03-31 3,579.64 1,264.68 2,018.37
2014-12-31 3,324.89 1,206.69 1,834.48
2014-09-30 2,140.22 4,154.71 2,041.29
2014-06-30 2,110.63 1,541.89 1,781.29
2014-03-31 2,102.54 4,968.24 1,910.15
2013-12-31 2,040.24 4,250.23 1,178.90
2013-09-30 1,958.43 3,651.84 1,496.11
2013-06-30 2,066.35 3,217.12 1,384.68
2013-03-31 2,118.08 2,935.75 1,414.27
2012-12-31 2,078.44 2,877.09 1,226.05
2012-09-30 2,008.73 2,697.21 1,552.99
2012-06-30 1,949.44 2,611.64 1,622.26
  • SNC-Lavalin Group's level of debt (117.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (234.5% vs 117.5% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • SNC-Lavalin Group is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess SNC-Lavalin Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SNC-Lavalin Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.54%
Current annual income from SNC-Lavalin Group dividends. Estimated to be 1.57% next year.
If you bought CA$2,000 of SNC-Lavalin Group shares you are expected to receive CA$31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SNC-Lavalin Group's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.13%).
  • SNC-Lavalin Group's dividend is below the markets top 25% of dividend payers in Canada (5.75%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:SNC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Canada Construction Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 336 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:SNC Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.42 3.00
2019-12-31 0.40 3.00
TSX:SNC Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-05-02 0.400 1.539
2019-02-22 0.400 1.157
2018-11-01 1.148 2.629
2018-08-02 1.148 2.238
2018-05-03 1.148 2.009
2018-02-22 1.148 2.056
2017-11-02 1.092 1.958
2017-08-03 1.092 1.980
2017-05-04 1.092 2.015
2017-03-02 1.092 2.031
2016-11-03 1.040 1.838
2016-08-04 1.040 1.915
2016-05-05 1.040 1.955
2016-03-03 1.040 2.224
2015-11-05 1.000 2.449
2015-08-06 1.000 2.498
2015-05-07 1.000 2.279
2015-03-05 1.000 2.431
2014-11-06 0.960 2.269
2014-08-08 0.960 1.849
2014-05-08 0.960 1.762
2014-03-06 0.960 2.000
2013-11-01 0.920 1.945
2013-08-02 0.920 2.203
2013-05-02 0.920 2.138
2013-03-08 0.920 2.151
2012-11-02 0.880 2.054
2012-08-03 0.880 2.335
2012-05-03 0.880 2.291
2012-03-26 0.880 2.268
2011-11-04 0.840 1.754
2011-08-05 0.840 1.745
2011-05-05 0.840 1.523
2011-03-04 0.840 1.522
2010-11-05 0.680 1.177
2010-08-06 0.680 1.350
2010-05-06 0.680 1.497
2010-03-05 0.680 1.329
2009-11-06 0.600 1.186
2009-08-07 0.600 1.271
2009-05-07 0.600 1.422
2009-03-06 0.600 1.776
2008-10-31 0.480 1.400
2008-07-30 0.480 1.185

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of SNC-Lavalin Group's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess SNC-Lavalin Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SNC-Lavalin Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SNC-Lavalin Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ian Edwards
COMPENSATION CA$2,536,511
TENURE AS CEO 0 years
CEO Bio

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 June 11, 2019. He has been responsible for the successful turnaround and transformation of the business and he is an accomplished leader with significant commercial expertise on complex contracts. He served as the President of Infrastructure Sector at SNC-Lavalin Group Inc. since April 2015. Mr. Edwards led 6,500 employees within SNC-Lavalin's global Infrastructure and related businesses, this includes: Infrastructure Engineering, Infrastructure Construction and Operations & Maintenance business units. Mr. Edwards has been Executive Vice President of Infrastructure at SNC-Lavalin Inc. since April 2015. He has an experience in delivering complex infrastructure projects and leading businesses in many sectors and across a dozen countries. He served as Executive Vice President of Infrastructure Construction at SNC-Lavalin Group Inc. since November 03, 2014 until April 2015. He served as Managing Director of Leighton Asia, India and Offshore at Leighton Asia Limited since 2012. He joined SNC-Lavalin in 2014 after six years in senior roles with the Leighton Group. Mr. Edwards served as Executive General Manager of Hong Kong, China, Macau & Taiwan at Leighton Asia Limited (also known as Leighton Asia (Northern) Limited). Mr. Edwards served as an Executive General Manager for Leighton Asia Limited with responsibility for projects in Hong Kong, Macau, China and Taiwan. He has a wealth of industry knowledge and expertise. He is Fellow of the Institution of Civil Engineers, as well as the Hong Kong Institution of Engineers. He holds qualifications in civil engineering and is an Incorporated Member of the Chartered Institute of Building, a Council Member of the Hong Kong Construction Association and a Board Member of the Australian Chamber of Commerce in Hong Kong. Mr. Edwards holds Higher and Ordinary Certificates in Civil Engineering from Lancashire University in the United Kingdom.

CEO Compensation
  • Ian's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ian's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the SNC-Lavalin Group management team in years:

5.3
Average Tenure
58
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.
Management Team

Ian Edwards

TITLE
Interim President
COMPENSATION
CA$3M

Sylvain Girard

TITLE
Executive VP & CFO
COMPENSATION
CA$2M
TENURE
3.2 yrs

Neil Bruce

TITLE
Advisor to the Board
COMPENSATION
CA$5M
AGE
58
TENURE
6.4 yrs

Sandy Taylor

TITLE
President of Nuclear Sector
COMPENSATION
CA$2M
AGE
60
TENURE
5.3 yrs

Chris Brown

TITLE
President of Resources Sector
COMPENSATION
CA$3M
AGE
48
TENURE
5.4 yrs

Pierre Mailhot

TITLE
Vice President of Administration

Denis Jasmin

TITLE
Vice President of Investor Relations

Hartland J. Paterson

TITLE
Executive VP & General Counsel
TENURE
3.8 yrs

Daniela Pizzuto

TITLE
Director of External Communications

Erik Ryan

TITLE
Executive Vice-President of Marketing
TENURE
5.6 yrs
Board of Directors Tenure

Average tenure and age of the SNC-Lavalin Group board of directors in years:

3.6
Average Tenure
60
Average Age
  • The tenure for the SNC-Lavalin Group board of directors is about average.
Board of Directors

Kevin Lynch

TITLE
Chairman
COMPENSATION
CA$414K
AGE
67
TENURE
1.4 yrs

Ian Edwards

TITLE
Interim President
COMPENSATION
CA$3M

Steven Newman

TITLE
Independent Director
COMPENSATION
CA$258K
AGE
53
TENURE
3.6 yrs

Zin Smati

TITLE
Independent Director
COMPENSATION
CA$234K
AGE
60
TENURE
3.1 yrs

Benita Warmbold

TITLE
Director
COMPENSATION
CA$242K
AGE
59
TENURE
2.1 yrs

Eric Siegel

TITLE
Director
COMPENSATION
CA$250K
AGE
64
TENURE
7.4 yrs

Alain Rhéaume

TITLE
Director
COMPENSATION
CA$247K
AGE
66
TENURE
6.1 yrs

Jacques Bougie

TITLE
Director
COMPENSATION
CA$257K
AGE
70
TENURE
6.1 yrs

Jean Raby

TITLE
Director
COMPENSATION
CA$238K
AGE
53
TENURE
3.6 yrs

Catherine Hughes

TITLE
Director
COMPENSATION
CA$224K
AGE
56
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
X
Management checks
We assess SNC-Lavalin Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SNC-Lavalin Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

An Intrinsic Calculation For SNC-Lavalin Group Inc. (TSE:SNC) Suggests It's 33% Undervalued

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (CA$, Millions) CA$-112.71 CA$429.76 CA$520.00 CA$592.26 CA$653.32 CA$704.30 CA$746.87 CA$782.84 CA$813.80 CA$841.09 Growth Rate Estimate Source Analyst x3 Analyst x5 Analyst x1 Est @ 13.9% Est @ 10.31% Est @ 7.8% Est @ 6.05% Est @ 4.82% Est @ 3.96% Est @ 3.35% Present Value (CA$, Millions) Discounted @ 11.21% CA$-101.35 CA$347.46 CA$378.04 CA$387.16 CA$384.02 CA$372.24 CA$354.94 CA$334.53 CA$312.70 CA$290.60 Present Value of 10-year Cash Flow (PVCF)= CA$3.06b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$841m × (1 + 1.9%) ÷ (11.2% – 1.9%) = CA$9.3b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$9.3b ÷ ( 1 + 11.2%)10 = CA$3.20b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CA$6.26b. … TSX:SNC Intrinsic value, June 10th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Does SNC-Lavalin Group Inc.'s (TSE:SNC) CEO Pay Reflect Performance?

See our latest analysis for SNC-Lavalin Group How Does Neil Bruce's Compensation Compare With Similar Sized Companies? … Thus we can conclude that Neil Bruce receives more in total compensation than the median of a group of companies in the same market, and of similar size to SNC-Lavalin Group Inc.. … We compared the total CEO remuneration paid by SNC-Lavalin Group Inc., and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Is SNC-Lavalin Group Inc. (TSE:SNC) At Risk Of Cutting Its Dividend?

Owning a strong dividend company and reinvesting the dividends is widely seen as an attractive way of growing your wealth. … Unfortunately, one common occurrence with dividend companies is for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. … Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below.

Simply Wall St -

SNC-Lavalin Group Inc. (TSE:SNC) Insiders Increased Their Holdings

So we'll take a look at whether insiders have been buying or selling shares in SNC-Lavalin Group Inc. … SNC-Lavalin Group Insider Transactions Over The Last Year. … Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Simply Wall St -

What You Must Know About SNC-Lavalin Group Inc.'s (TSE:SNC) Financial Strength

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like SNC-Lavalin Group Inc. … Don’t forget that this is a general and concentrated examination of SNC-Lavalin Group’s financial health, so you should conduct further analysis. … View our latest analysis for SNC-Lavalin Group

Simply Wall St -

Could The SNC-Lavalin Group Inc. (TSE:SNC) Ownership Structure Tell Us Something Useful?

We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at our data on the ownership groups (below), it's seems that. … We can zoom in on the different ownership groups, to learn more about SNC

Simply Wall St -

Did You Manage To Avoid SNC-Lavalin Group's 35% Share Price Drop?

(TSE:SNC) have tasted that bitter downside in the last year, as the share price dropped 35%. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the last year SNC-Lavalin Group saw its earnings per share drop below zero.

Simply Wall St -

Is SNC-Lavalin Group Inc.'s (TSE:SNC) CEO Pay Justified?

Neil Bruce has been the CEO of SNC-Lavalin Group Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Neil Bruce's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is SNC-Lavalin Group Inc. (TSE:SNC) A Smart Choice For Dividend Investors?

Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … Over the past 10 years SNC-Lavalin Group Inc. … Let's dig deeper into whether SNC-Lavalin Group should have a place in your portfolio.

Simply Wall St -

Is SNC-Lavalin Group Inc. (TSE:SNC) Struggling With Its 7.9% Return On Capital Employed?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Company Info

Description

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.

Details
Name: SNC-Lavalin Group Inc.
SNC
Exchange: TSX
Founded: 1911
CA$4,559,143,924
175,554,252
Website: http://www.snclavalin.com
Address: SNC-Lavalin Group Inc.
455 René-Lévesque Boulevard West,
Montreal,
Quebec, H2Z 1Z3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SNC Common Shares The Toronto Stock Exchange CA CAD 11. Jun 1986
OTCPK SNCA.F Common Shares Pink Sheets LLC US USD 11. Jun 1986
DB LAV Common Shares Deutsche Boerse AG DE EUR 11. Jun 1986
Number of employees
Current staff
Staff numbers
52,435
SNC-Lavalin Group employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 23:47
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.