TSX:SNC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.


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

15.7%

SNC

3.9%

CA Construction

-0.3%

CA Market


1 Year Return

-56.2%

SNC

-14.8%

CA Construction

4.8%

CA Market

Return vs Industry: SNC underperformed the Canadian Construction industry which returned -14.8% over the past year.

Return vs Market: SNC underperformed the Canadian Market which returned 4.8% over the past year.


Shareholder returns

SNCIndustryMarket
7 Day15.7%3.9%-0.3%
30 Day2.3%2.3%-3.3%
90 Day-1.0%1.2%-1.6%
1 Year-55.6%-56.2%-13.1%-14.8%8.5%4.8%
3 Year-59.7%-61.8%-5.1%-11.2%14.8%4.5%
5 Year-51.7%-56.3%16.6%3.0%26.6%8.1%

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?

3.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SNC (CA$20.78) is trading above our estimate of fair value (CA$9.09)

Significantly Below Fair Value: SNC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SNC is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: SNC is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SNC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SNC is overvalued based on its PB Ratio (3.3x) compared to the CA Construction industry average (2.4x).


Next Steps

Future Growth

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

125.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SNC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SNC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SNC's revenue is expected to decline over the next 3 years (-4.9% per year).

High Growth Revenue: SNC's revenue is forecast to decline over the next 3 years (-4.9% 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 (9.4%).


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

Earnings Trend: SNC is unprofitable, and losses have increased over the past 5 years at a rate of -62.4% per year.

Accelerating Growth: Unable to compare SNC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SNC is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (5.4%).


Return on Equity

High ROE: SNC has a negative Return on Equity (-326.59%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SNC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SNC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is SNC-Lavalin Group's financial position?


Financial Position Analysis

Short Term Liabilities: SNC's short term assets (CA$4.9B) do not cover its short term liabilities (CA$6.3B)

Long Term Liabilities: SNC's short term assets (4.9B) exceeds its long term liabilities (4.1B)


Debt to Equity History and Analysis

Debt Level: SNC's debt to equity ratio (403.3%) is considered high

Reducing Debt: SNC's debt to equity ratio has increased from 74.4% to 403.3% over the past 5 years.

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

Interest Coverage: Insufficient data to determine if SNC's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: SNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: SNC's 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?

0.38%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%2.0%markettop25%6.0%industryaverage1.7%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SNC's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: SNC's dividend (0.38%) is low compared to the top 25% of dividend payers in the Canadian market (5.96%).

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

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

5.7yrs

Average management tenure


CEO

Ian Edwards 0

0.3yrs

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

Compensation vs. Market: Ian has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

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


Management Age and Tenure

5.7yrs

Average Tenure

57yo

Average Age

Experienced Management: SNC's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

61yo

Average Age

Experienced Board: SNC's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Charlene Ripley (55yo)

    Executive VP & General Counsel

    • Tenure: 0yrs
  • Sandy Taylor (61yo)

    President of Nuclear Sector

    • Tenure: 5.6yrs
    • Compensation: CA$2.22m
  • Erik Ryan

    Executive Vice-President of Marketing

    • Tenure: 5.9yrs
  • Pierre Mailhot

    Vice President of Administration

    • Tenure: 0yrs
  • Neil Bruce (59yo)

    Advisor to the Board

    • Tenure: 6.8yrs
    • Compensation: CA$5.45m
  • Denis Jasmin

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Chris Brown (49yo)

    President of Resources Sector

    • Tenure: 5.8yrs
    • Compensation: CA$2.66m
  • Ian Edwards

    Interim President

    • Tenure: 0.3yrs
    • Compensation: CA$2.54m
  • Sylvain Girard

    Executive VP & CFO

    • Tenure: 3.5yrs
    • Compensation: CA$1.79m
  • Daniela Pizzuto

    Director of External Communications

    • Tenure: 0yrs

Board Members

  • Jacques Bougie (71yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$257.13k
  • Benita Warmbold (60yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: CA$242.30k
  • Alain Rhéaume (67yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: CA$246.80k
  • Jean Raby (54yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: CA$237.57k
  • Catherine Hughes (57yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: CA$224.21k
  • Kevin Lynch (68yo)

    Independent Chairman

    • Tenure: 1.8yrs
    • Compensation: CA$414.06k
  • Steven Newman (54yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: CA$258.04k
  • Zin Smati (61yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$233.89k
  • Eric Siegel (65yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: CA$249.58k
  • Ian Edwards

    Interim President

    • Tenure: 0.3yrs
    • 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$3.648b
  • 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 Analysis2019/10/23 23:42
End of Day Share Price2019/10/23 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.