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SNC

SNC-Lavalin Group TSX:SNC Stock Report

Last Price

CA$22.50

Market Cap

CA$3.9b

7D

-9.7%

1Y

-36.9%

Updated

27 Sep, 2022

Data

Company Financials +
SNC fundamental analysis
Snowflake Score
Valuation3/6
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$22.50
52 Week HighCA$36.37
52 Week LowCA$21.27
Beta1.41
1 Month Change-12.45%
3 Month Change1.90%
1 Year Change-36.94%
3 Year Change28.57%
5 Year Change-60.21%
Change since IPO1,623.40%

Recent News & Updates

Aug 22
Is SNC-Lavalin Group (TSE:SNC) A Risky Investment?

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

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

SNCCA ConstructionCA Market
7D-9.7%-9.0%-5.5%
1Y-36.9%-15.3%-7.3%

Return vs Industry: SNC underperformed the Canadian Construction industry which returned -14.9% over the past year.

Return vs Market: SNC underperformed the Canadian Market which returned -8.4% over the past year.

Price Volatility

Is SNC's price volatile compared to industry and market?
SNC volatility
SNC Average Weekly Movement4.5%
Construction Industry Average Movement4.5%
Market Average Movement9.8%
10% most volatile stocks in CA Market18.1%
10% least volatile stocks in CA Market3.8%

Stable Share Price: SNC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SNC's weekly volatility (4%) 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$3.95b
Earnings (TTM)CA$29.58m
Revenue (TTM)CA$7.51b

133.5x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNC income statement (TTM)
RevenueCA$7.51b
Cost of RevenueCA$7.08b
Gross ProfitCA$429.56m
Other ExpensesCA$399.98m
EarningsCA$29.58m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin5.72%
Net Profit Margin0.39%
Debt/Equity Ratio67.2%

How did SNC perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

47%

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

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/EBITDA16.8x
PEG Ratio3.7x

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 Average56.4x
BDGI Badger Infrastructure Solutions
156.6x93.3%CA$1.0b
WSP WSP Global
39.8x24.0%CA$17.9b
ARE Aecon Group
21.8x53.1%CA$582.1m
BDT Bird Construction
7.6x13.9%CA$321.1m
SNC SNC-Lavalin Group
133.5x36.5%CA$3.9b

Price-To-Earnings vs Peers: SNC is expensive based on its Price-To-Earnings Ratio (133.5x) compared to the peer average (56.4x).


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 (133.5x) compared to the North American Construction industry average (25.5x)


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 Ratio133.5x
Fair PE Ratio35.4x

Price-To-Earnings vs Fair Ratio: SNC is expensive based on its Price-To-Earnings Ratio (133.5x) compared to the estimated Fair Price-To-Earnings Ratio (35.4x).


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$22.5) is trading below our estimate of fair value (CA$76.42)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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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


36.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNC's forecast earnings growth (36.5% per year) is above the savings rate (1.6%).

Earnings vs Market: SNC's earnings (36.5% per year) are forecast to grow faster than the Canadian market (7.6% per year).

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

Revenue vs Market: SNC's revenue (1.4% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: SNC's revenue (1.4% 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 (10.4%).


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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


7.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SNC has a large one-off loss of CA$55.6M impacting its June 30 2022 financial results.

Growing Profit Margin: SNC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SNC's earnings have grown by 7.8% 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 (16.7%).


Return on Equity

High ROE: SNC's Return on Equity (1%) is considered low.


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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$3.5B) do not cover its short term liabilities (CA$4.2B).

Long Term Liabilities: SNC's short term assets (CA$3.5B) exceed its long term liabilities (CA$2.5B).


Debt to Equity History and Analysis

Debt Level: SNC's net debt to equity ratio (48%) is considered high.

Reducing Debt: SNC's debt to equity ratio has increased from 16.9% to 67.2% 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 (2x 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

  • Cash Flow Coverage


0.36%

Current Dividend Yield

Dividend Yield vs Market

SNC-Lavalin Group Dividend Yield vs Market
How does SNC-Lavalin Group dividend yield compare to the market?
SegmentDividend Yield
Company (SNC-Lavalin Group)0.4%
Market Bottom 25% (CA)2.1%
Market Top 25% (CA)6.1%
Industry Average (Construction)1.2%
Analyst forecast in 3 Years (SNC-Lavalin Group)0.5%

Notable Dividend: SNC's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.07%).

High Dividend: SNC's dividend (0.36%) is low compared to the top 25% of dividend payers in the Canadian market (6.12%).


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?

2.7yrs

Average management tenure


CEO

Ian Edwards (59 yo)

3.25yrs

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

Ian Edwards's Compensation vs SNC-Lavalin Group Earnings
How has Ian Edwards's remuneration changed compared to SNC-Lavalin Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

CA$30m

Mar 31 2022n/an/a

CA$57m

Dec 31 2021CA$8mCA$1m

CA$100m

Sep 30 2021n/an/a

-CA$207m

Jun 30 2021n/an/a

-CA$235m

Mar 31 2021n/an/a

-CA$289m

Dec 31 2020CA$8mCA$1m

-CA$356m

Sep 30 2020n/an/a

CA$2b

Jun 30 2020n/an/a

CA$5b

Mar 31 2020n/an/a

CA$2b

Dec 31 2019CA$4mCA$949k

CA$2b

Sep 30 2019n/an/a

-CA$978m

Jun 30 2019n/an/a

-CA$4b

Mar 31 2019n/an/a

-CA$1b

Dec 31 2018CA$3mCA$744k

-CA$1b

Sep 30 2018n/an/a

CA$334m

Jun 30 2018n/an/a

CA$317m

Mar 31 2018n/an/a

CA$370m

Dec 31 2017CA$3mCA$723k

CA$382m

Sep 30 2017n/an/a

CA$331m

Jun 30 2017n/an/a

CA$271m

Mar 31 2017n/an/a

CA$223m

Dec 31 2016CA$3mCA$671k

CA$256m

Sep 30 2016n/an/a

CA$303m

Jun 30 2016n/an/a

CA$484m

Mar 31 2016n/an/a

CA$422m

Dec 31 2015CA$2mCA$581k

CA$404m

Compensation vs Market: Ian's total compensation ($USD5.55M) is above average for companies of similar size in the Canadian market ($USD3.51M).

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 (2.7 years average tenure).


Board Members

Experienced Board: SNC's board of directors are not considered experienced ( 2.3 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

TSX:SNC Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
15 Aug 22BuyCA$626,442William YoungIndividual22,800CA$27.48
12 Aug 22BuyCA$19,101William YoungIndividual700CA$27.29
26 May 22SellCA$242,527Jeffrey BellIndividual9,470CA$25.61
17 May 22BuyCA$41,051Gary BaughmanIndividual1,600CA$25.66
07 Mar 22BuyCA$98,105Christie James ClarkIndividual3,500CA$28.03
07 Mar 22BuyCA$281,800Michael PedersenIndividual10,000CA$28.18
07 Dec 21BuyCA$22,606Gary BaughmanIndividual700CA$32.29

Ownership Breakdown

What is the ownership structure of SNC?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders262,0100.1%
General Public71,195,56940.6%
Institutions104,096,67359.3%

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


Top Shareholders

Top 25 shareholders own 57.98% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
19.9%
Caisse de dépôt et placement du Québec
34,935,200CA$786.0m0%0.8%
10.74%
Jarislowsky, Fraser Limited
18,855,138CA$424.2m0%1.9%
10.13%
RBC Global Asset Management Inc.
17,786,737CA$400.2m6.27%0.23%
3.33%
The Vanguard Group, Inc.
5,847,168CA$131.6m1.29%no data
1.4%
FMR LLC
2,460,000CA$55.4m0%no data
1.35%
Mackenzie Financial Corporation
2,369,457CA$53.3m0.95%0.05%
1.34%
Dimensional Fund Advisors LP
2,358,399CA$53.1m1.77%0.01%
1.27%
Norges Bank Investment Management
2,232,617CA$50.2m0%0.01%
1.18%
BlackRock, Inc.
2,067,767CA$46.5m-0.62%no data
1.17%
SEI Investments Company
2,045,482CA$46.0m11.54%0.06%
0.75%
AGF Management Limited
1,313,690CA$29.6m-0.53%0.15%
0.64%
1832 Asset Management L.P.
1,125,747CA$25.3m-1.73%0.03%
0.61%
IG Investment Management, Ltd.
1,072,965CA$24.1m0%0.06%
0.53%
Desjardins Global Asset Management Inc.
930,778CA$20.9m0%0.18%
0.5%
Industrial Alliance Investment Management Inc.
880,320CA$19.8m0%0.2%
0.46%
ATB Investment Management Inc.
813,337CA$18.3m0%0.29%
0.46%
Allspring Global Investments, LLC
813,300CA$18.3m0.01%0.02%
0.35%
Franklin Resources, Inc.
621,189CA$14.0m-0.44%no data
0.33%
J.P. Morgan Asset Management, Inc.
577,542CA$13.0m-2.3%no data
0.31%
Charles Schwab Investment Management, Inc.
542,762CA$12.2m2.49%no data
0.29%
Guardian Capital LP
509,575CA$11.5m20.15%0.19%
0.27%
BMO Asset Management Corp.
476,288CA$10.7m0.35%no data
0.23%
TD Asset Management, Inc.
405,266CA$9.1m-5.88%0.01%
0.23%
Fidelity International Ltd
400,172CA$9.0m0%no data
0.2%
Montrusco Bolton Investments Inc.
343,528CA$7.7m0%0.13%

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$3.950b
  • 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

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
SNC NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJun 1986

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
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.