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SNC

SNC-Lavalin Group TSX:SNC Stock Report

Last Price

CA$22.14

Market Cap

CA$3.9b

7D

-2.9%

1Y

-32.0%

Updated

01 Jul, 2022

Data

Company Financials +
SNC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health1/6
Dividends0/6

SNC Stock Overview

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

SNC-Lavalin Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SNC-Lavalin Group
Historical stock prices
Current Share PriceCA$22.14
52 Week HighCA$38.25
52 Week LowCA$21.39
Beta1.42
1 Month Change-12.21%
3 Month Change-26.47%
1 Year Change-31.96%
3 Year Change-16.77%
5 Year Change-60.98%
Change since IPO1,595.83%

Recent News & Updates

May 23
Is SNC-Lavalin Group (TSE:SNC) A Risky Investment?

Is SNC-Lavalin Group (TSE:SNC) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

SNCCA ConstructionCA Market
7D-2.9%1.3%-0.8%
1Y-32.0%-9.6%-5.0%

Return vs Industry: SNC underperformed the Canadian Construction industry which returned -9.3% over the past year.

Return vs Market: SNC underperformed the Canadian Market which returned -4.7% over the past year.

Price Volatility

Is SNC's price volatile compared to industry and market?
SNC volatility
SNC Average Weekly Movement5.7%
Construction Industry Average Movement4.8%
Market Average Movement10.1%
10% most volatile stocks in CA Market17.4%
10% least volatile stocks in CA Market4.4%

Stable Share Price: SNC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SNC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191130,989Ian Edwardshttps://www.snclavalin.com

SNC-Lavalin Group Inc. operates as an integrated professional services and project management company. It operates through Engineering, Design, and Project Management (EDPM); Nuclear; Infrastructure Services; Resources; Infrastructure EPC (Engineering, Procurement, and Construction) Projects; and Capital segments. 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$3.89b
Earnings (TTM)CA$57.20m
Revenue (TTM)CA$7.44b

67.9x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNC income statement (TTM)
RevenueCA$7.44b
Cost of RevenueCA$7.01b
Gross ProfitCA$428.46m
Other ExpensesCA$371.25m
EarningsCA$57.20m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.33
Gross Margin5.76%
Net Profit Margin0.77%
Debt/Equity Ratio60.1%

How did SNC perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

25%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SNC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SNC?

Other financial metrics that can be useful for relative valuation.

SNC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA15.9x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does SNC's PE Ratio compare to its peers?

SNC PE Ratio vs Peers
The above table shows the PE ratio for SNC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18x
WSP WSP Global
35.7x18.2%CA$17.2b
ARE Aecon Group
15.8x24.9%CA$800.0m
BDT Bird Construction
9.5x20.8%CA$401.1m
FTT Finning International
10.9x11.4%CA$4.2b
SNC SNC-Lavalin Group
67.9x30.1%CA$3.9b

Price-To-Earnings vs Peers: SNC is expensive based on its Price-To-Earnings Ratio (67.9x) compared to the peer average (18x).


Price to Earnings Ratio vs Industry

How does SNC's PE Ratio compare vs other companies in the North American Construction Industry?

Price-To-Earnings vs Industry: SNC is expensive based on its Price-To-Earnings Ratio (67.9x) compared to the North American Construction industry average (23.3x)


Price to Earnings Ratio vs Fair Ratio

What is SNC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SNC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio67.9x
Fair PE Ratio30.8x

Price-To-Earnings vs Fair Ratio: SNC is expensive based on its Price-To-Earnings Ratio (67.9x) compared to the estimated Fair Price-To-Earnings Ratio (30.8x).


Share Price vs Fair Value

What is the Fair Price of SNC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNC (CA$22.14) is trading below our estimate of fair value (CA$77.1)

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


Price to Earnings Growth Ratio

PEG Ratio: SNC is poor value based on its PEG Ratio (2.3x)


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


30.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNC's forecast earnings growth (30.1% per year) is above the savings rate (1.6%).

Earnings vs Market: SNC's earnings (30.1% per year) are forecast to grow faster than the Canadian market (6.9% per year).

High Growth Earnings: SNC's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SNC's revenue (1.9% per year) is forecast to grow slower than the Canadian market (6.5% per year).

High Growth Revenue: SNC's revenue (1.9% per year) is forecast to grow slower than 20% 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 (10.2%).


Discover growth companies

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SNC has a large one-off loss of CA$33.8M impacting its March 31 2022 financial results.

Growing Profit Margin: SNC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SNC's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: SNC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SNC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (-0.1%).


Return on Equity

High ROE: SNC's Return on Equity (2%) is considered low.


Discover strong past performing companies

Financial Health

How is SNC-Lavalin Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SNC's short term assets (CA$3.4B) do not cover its short term liabilities (CA$4.0B).

Long Term Liabilities: SNC's short term assets (CA$3.4B) exceed its long term liabilities (CA$2.6B).


Debt to Equity History and Analysis

Debt Level: SNC's net debt to equity ratio (42.7%) is considered high.

Reducing Debt: SNC's debt to equity ratio has increased from 21.4% to 60.1% over the past 5 years.

Debt Coverage: SNC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SNC's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.36%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SNC's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: SNC's dividend (0.36%) is low compared to the top 25% of dividend payers in the Canadian market (5.4%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: SNC is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure


CEO

Ian Edwards (59 yo)

3yrs

Tenure

CA$7,629,627

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 ($USD5.91M) is above average for companies of similar size in the Canadian market ($USD3.65M).

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


Leadership Team

Experienced Management: SNC's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: SNC's board of directors are not considered experienced ( 2.1 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 sold more shares than they have bought 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
  • Implied Market Cap: CA$3.887b
  • Shares outstanding: 175.55m
  • Website: https://www.snclavalin.com

Number of Employees


Location

  • SNC-Lavalin Group Inc.
  • 455 RenE-LEvesque 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 Analysis2022/07/01 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.