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STN

StantecTSX:STN Stock Report

Market Cap

CA$6.8b

7D

-4.2%

1Y

45.1%

Updated

28 Sep, 2021

Data

Company Financials +
STN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends4/6

STN Overview

Stantec Inc. provides professional consulting services in the area of infrastructure and facilities in Canada, the United States, and internationally.

Stantec Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Stantec
Historical stock prices
Current Share PriceCA$60.12
52 Week HighCA$37.46
52 Week LowCA$66.22
Beta0.76
1 Month Change0.18%
3 Month Change8.70%
1 Year Change45.11%
3 Year Change86.48%
5 Year Change97.12%
Change since IPO4,426.68%

Recent News & Updates

Aug 30
Here's Why I Think Stantec (TSE:STN) Is An Interesting Stock

Here's Why I Think Stantec (TSE:STN) Is An Interesting Stock

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

STNCA Professional ServicesCA Market
7D-4.2%-3.3%1.8%
1Y45.1%34.3%29.7%

Return vs Industry: STN exceeded the Canadian Professional Services industry which returned 34.3% over the past year.

Return vs Market: STN exceeded the Canadian Market which returned 29.7% over the past year.

Price Volatility

Is STN's price volatile compared to industry and market?
STN volatility
STN Beta0.76
Industry Beta0.35
Market Beta1

Stable Share Price: STN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: STN's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195422,000Gord Johnstonhttps://www.stantec.com

Stantec Inc. provides professional consulting services in the area of infrastructure and facilities in Canada, the United States, and internationally. The company provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. It also offers water, transportation, and public works; transportation planning and traffic engineering; and resource assessment, mine development, reclamation, hydrology, and geotechnical and infrastructure engineering services, as well as urban planning, traffic assessments and optimization, environmental impact assessments, and public consultation services.

Stantec Fundamentals Summary

How do Stantec's earnings and revenue compare to its market cap?
STN fundamental statistics
Market CapCA$6.77b
Earnings (TTM)CA$191.10m
Revenue (TTM)CA$3.57b

34.9x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STN income statement (TTM)
RevenueCA$3.57b
Cost of RevenueCA$1.68b
Gross ProfitCA$1.88b
ExpensesCA$1.69b
EarningsCA$191.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)1.72
Gross Margin52.75%
Net Profit Margin5.36%
Debt/Equity Ratio36.8%

How did STN perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

37%

Payout Ratio

Does STN pay a reliable dividends?

See STN dividend history and benchmarks
When do you need to buy STN by to receive an upcoming dividend?
Stantec dividend dates
Ex Dividend DateSep 28 2021
Dividend Pay DateOct 15 2021
Days until Ex dividend1 day
Days until Dividend pay date16 days

Does STN pay a reliable dividends?

See STN dividend history and benchmarks

Valuation

Is Stantec undervalued compared to its fair value and its price relative to the market?

34.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STN (CA$60.12) is trading above our estimate of fair value (CA$49.38)

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


Price To Earnings Ratio

PE vs Industry: STN is poor value based on its PE Ratio (34.9x) compared to the Canadian Professional Services industry average (19.1x).

PE vs Market: STN is poor value based on its PE Ratio (34.9x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: STN is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: STN is good value based on its PB Ratio (3.5x) compared to the CA Professional Services industry average (4.8x).


Future Growth

How is Stantec forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STN's forecast earnings growth (16.3% per year) is above the savings rate (1.5%).

Earnings vs Market: STN's earnings (16.3% per year) are forecast to grow faster than the Canadian market (12% per year).

High Growth Earnings: STN's earnings are forecast to grow, but not significantly.

Revenue vs Market: STN's revenue (5% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: STN's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STN's Return on Equity is forecast to be low in 3 years time (14.9%).


Past Performance

How has Stantec performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STN has high quality earnings.

Growing Profit Margin: STN's current net profit margins (5.4%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: STN's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: STN's earnings growth over the past year (4.8%) is below its 5-year average (11.7% per year).

Earnings vs Industry: STN earnings growth over the past year (4.8%) underperformed the Professional Services industry 4.8%.


Return on Equity

High ROE: STN's Return on Equity (10%) is considered low.


Financial Health

How is Stantec's financial position?


Financial Position Analysis

Short Term Liabilities: STN's short term assets (CA$1.5B) exceed its short term liabilities (CA$1.2B).

Long Term Liabilities: STN's short term assets (CA$1.5B) exceed its long term liabilities (CA$1.3B).


Debt to Equity History and Analysis

Debt Level: STN's debt to equity ratio (36.8%) is considered satisfactory.

Reducing Debt: STN's debt to equity ratio has reduced from 58.1% to 36.8% over the past 5 years.

Debt Coverage: STN's debt is well covered by operating cash flow (75.2%).

Interest Coverage: STN's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Dividend

What is Stantec current dividend yield, its reliability and sustainability?

1.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STN's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.66%).

High Dividend: STN's dividend (1.1%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).


Stability and Growth of Payments

Stable Dividend: STN's dividends per share have been stable in the past 10 years.

Growing Dividend: STN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.4%), STN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STN's dividends in 3 years are forecast to be well covered by earnings (24.6% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Gord Johnston (55 yo)

3.67yrs

Tenure

CA$5,028,820

Compensation

Mr. Gordon Allan Johnston, P.Eng., also known as Gord, has been the President, Chief Executive Officer and Director of Stantec Inc. since January 1, 2018. Mr. Johnston served as an Executive Vice President...


CEO Compensation Analysis

Compensation vs Market: Gord's total compensation ($USD3.96M) is about average for companies of similar size in the Canadian market ($USD3.59M).

Compensation vs Earnings: Gord's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: STN's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: STN's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STN 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

Stantec Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Stantec Inc.
  • Ticker: STN
  • Exchange: TSX
  • Founded: 1954
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: CA$6.773b
  • Shares outstanding: 111.04m
  • Website: https://www.stantec.com

Number of Employees


Location

  • Stantec Inc.
  • 10220-103 Avenue NW
  • Suite 400
  • Edmonton
  • Alberta
  • T5J 0K4
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/28 23:19
End of Day Share Price2021/09/28 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.