TSX:SNC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with questionable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

SNC

0.04%

CA Construction

-0.9%

CA Market


1 Year Return

7.8%

SNC

5.8%

CA Construction

-4.2%

CA Market

Return vs Industry: SNC exceeded the Canadian Construction industry which returned 5.8% over the past year.

Return vs Market: SNC exceeded the Canadian Market which returned -4.2% over the past year.


Shareholder returns

SNCIndustryMarket
7 Day-0.3%0.04%-0.9%
30 Day-8.8%0.7%1.2%
90 Day-11.9%2.0%1.4%
1 Year8.1%7.8%7.7%5.8%-0.7%-4.2%
3 Year-60.7%-62.1%-8.4%-13.2%6.6%-3.8%
5 Year-43.5%-47.8%24.2%11.2%34.2%13.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNC (CA$21.68) is trading below our estimate of fair value (CA$124.56)

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


Price To Earnings Ratio

PE vs Industry: SNC is good value based on its PE Ratio (1.7x) compared to the CA Construction industry average (18.9x).

PE vs Market: SNC is good value based on its PE Ratio (1.7x) compared to the Canadian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: SNC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SNC is good value based on its PB Ratio (1.1x) 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?

-103.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNC's earnings are forecast to decline over the next 3 years (-103.4% per year).

Earnings vs Market: SNC's earnings are forecast to decline over the next 3 years (-103.4% per year).

High Growth Earnings: SNC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SNC's revenue is expected to decline over the next 3 years (-2.6% per year).

High Growth Revenue: SNC's revenue is forecast to decline over the next 3 years (-2.6% 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 (11.2%).


Next Steps

Past Performance

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

-32.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNC has a high level of non-cash earnings.

Growing Profit Margin: SNC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SNC's earnings have declined by 32.4% 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 (-27.7%).


Return on Equity

High ROE: SNC's Return on Equity (66.7%) is considered outstanding.


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) do not cover its short term liabilities (CA$5.3B).

Long Term Liabilities: SNC's short term assets (CA$5.3B) exceed its long term liabilities (CA$2.9B).


Debt to Equity History and Analysis

Debt Level: SNC's debt to equity ratio (72.5%) is considered high.

Reducing Debt: SNC's debt to equity ratio has increased from 43.7% to 72.5% over the past 5 years.

Debt Coverage: SNC's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: SNC's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

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

0.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SNC's dividend (0.37%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.69%).

High Dividend: SNC's dividend (0.37%) is low compared to the top 25% of dividend payers in the Canadian market (5.78%).


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?

2.2yrs

Average management tenure


CEO

Ian Edwards (57 yo)

1.33yrs

Tenure

CA$3,736,385

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 ($USD2.85M) is about average for companies of similar size in the Canadian market ($USD3.03M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ian Edwards
President1.33yrsCA$3.74m0.0048%
CA$ 179.6k
Alexander Taylor
President of Nuclear Sector6.58yrsCA$2.40m0.0067%
CA$ 251.3k
Craig Muir
President of Resources1.5yrsCA$2.89m0.00025%
CA$ 9.4k
Jeffrey Bell
Executive VP & CFO0.50yrno datano data
Pierre Mailhot
Vice President of Administrationno datano datano data
Denis Jasmin
Vice President of Investor Relationsno datano datano data
Charlene Ripley
Executive VP & General Counsel1yrno datano data
Daniela Pizzuto
Director of External Communicationsno datano datano data
Erik Ryan
Executive Vice-President of Marketing6.92yrsno data0.0088%
CA$ 330.5k
James Cullens
Executive Vice President of Human Resources2.92yrsno data0.0035%
CA$ 131.3k
Gerry Grigoropoulos
Managing Director of Infrastructure Concession Investmentsno datano datano data
Jacques Landry
Senior Vice President of IT Project Management3.5yrsno datano data

2.2yrs

Average Tenure

57yo

Average Age

Experienced Management: SNC's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ian Edwards
President1.33yrsCA$3.74m0.0048%
CA$ 179.6k
William Young
Chairman of Board0.083yrno datano data
Isabelle Courville
Independent Director3.42yrsCA$304.44k0.0018%
CA$ 69.0k
Gary Baughman
Independent Director0.42yrno datano data
Benita Warmbold
Independent Director3.42yrsCA$318.06k0.0017%
CA$ 64.5k
Christie James Clark
Director0.42yrno datano data
Jean Raby
Independent Director4.92yrsCA$271.83k0.0011%
CA$ 43.0k
Mary-Ann Bell
Independent Director0.42yrno data0.0057%
CA$ 215.0k
Michael Pedersen
Independent Director0.42yrno data0.028%
CA$ 1.1m
Steven Newman
Independent Director4.92yrsCA$313.28k0.0028%
CA$ 105.6k
Zin Smati
Independent Director4.42yrsCA$268.81k0.0023%
CA$ 87.9k
Mike Pederson
Director0.42yrno datano data

0.9yrs

Average Tenure

59yo

Average Age

Experienced Board: SNC's board of directors are not considered experienced ( 0.9 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

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$3.773b
  • Shares outstanding: 175.55m
  • Website: https://www.linxon.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

Biography

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; Capita ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 23:54
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.