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STN

Stantec TSX:STN Stock Report

Last Price

CA$59.42

Market Cap

CA$6.6b

7D

-4.8%

1Y

-4.2%

Updated

24 Sep, 2022

Data

Company Financials +
STN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health2/6
Dividends4/6

STN Stock Overview

Stantec Inc. provides engineering, architecture, and environmental consulting services in the areas 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$59.42
52 Week HighCA$73.10
52 Week LowCA$53.12
Beta0.78
1 Month Change-7.69%
3 Month Change5.99%
1 Year Change-4.22%
3 Year Change105.25%
5 Year Change71.59%
Change since IPO4,373.98%

Recent News & Updates

Sep 16
Stantec (TSE:STN) Seems To Use Debt Quite Sensibly

Stantec (TSE:STN) Seems To Use Debt Quite Sensibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 15
Stantec's (TSE:STN) Returns Have Hit A Wall

Stantec's (TSE:STN) Returns Have Hit A Wall

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...

Shareholder Returns

STNCA Professional ServicesCA Market
7D-4.8%-3.3%-4.8%
1Y-4.2%-2.5%-7.2%

Return vs Industry: STN underperformed the Canadian Professional Services industry which returned -1.5% over the past year.

Return vs Market: STN matched the Canadian Market which returned -4.6% over the past year.

Price Volatility

Is STN's price volatile compared to industry and market?
STN volatility
STN Average Weekly Movement3.1%
Professional Services Industry Average Movement9.2%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.4%
10% least volatile stocks in CA Market3.7%

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

Volatility Over Time: STN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195425,000Gord Johnstonhttps://www.stantec.com

Stantec Inc. provides engineering, architecture, and environmental consulting services in the areas 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 structural, mechanical, electrical, plumbing, and hydraulics engineering services; transportation advisory, planning and analytics, transport engineering, and technical design; paleontological and archaeological services for the rail, transportation, water, and power and energy sectors; environmental and infrastructure services; and environmental and cultural resource compliance services.

Stantec Fundamentals Summary

How do Stantec's earnings and revenue compare to its market cap?
STN fundamental statistics
Market CapCA$6.58b
Earnings (TTM)CA$192.10m
Revenue (TTM)CA$4.02b

34.3x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STN income statement (TTM)
RevenueCA$4.02b
Cost of RevenueCA$1.83b
Gross ProfitCA$2.18b
Other ExpensesCA$1.99b
EarningsCA$192.10m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 11, 2022

Earnings per share (EPS)1.73
Gross Margin54.37%
Net Profit Margin4.78%
Debt/Equity Ratio70.3%

How did STN perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

40%

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 2022
Dividend Pay DateOct 17 2022
Days until Ex dividend3 days
Days until Dividend pay date22 days

Does STN pay a reliable dividends?

See STN dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 STN?

Other financial metrics that can be useful for relative valuation.

STN 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/Revenue2.1x
Enterprise Value/EBITDA18.4x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

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

STN PE Ratio vs Peers
The above table shows the PE ratio for STN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average69.4x
TRI Thomson Reuters
96x25.1%CA$68.7b
IBG IBI Group
24.5x13.7%CA$729.2m
BYD Boyd Group Services
138.5x89.7%CA$3.8b
DKSH DKSH Holding
18.8x7.1%CHF4.6b
STN Stantec
34.3x20.0%CA$6.6b

Price-To-Earnings vs Peers: STN is good value based on its Price-To-Earnings Ratio (34.3x) compared to the peer average (69.4x).


Price to Earnings Ratio vs Industry

How does STN's PE Ratio compare vs other companies in the North American Professional Services Industry?

Price-To-Earnings vs Industry: STN is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the North American Professional Services industry average (17.4x)


Price to Earnings Ratio vs Fair Ratio

What is STN'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.

STN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio34.3x
Fair PE Ratio32.9x

Price-To-Earnings vs Fair Ratio: STN is expensive based on its Price-To-Earnings Ratio (34.3x) compared to the estimated Fair Price-To-Earnings Ratio (32.9x).


Share Price vs Fair Value

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

Below Fair Value: STN (CA$59.42) is trading below our estimate of fair value (CA$101.6)

Significantly Below Fair Value: STN 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 Stantec forecast to perform in the next 1 to 3 years based on estimates from 11 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


20.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STN's forecast earnings growth (20% per year) is above the savings rate (1.6%).

Earnings vs Market: STN's earnings (20% per year) are forecast to grow faster than the Canadian market (7.4% per year).

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

Revenue vs Market: STN's revenue (5.8% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: STN's revenue (5.8% 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 (18.7%).


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Past Performance

How has Stantec 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


8.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STN has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: STN's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: STN's earnings growth over the past year (0.5%) is below its 5-year average (8.1% per year).

Earnings vs Industry: STN earnings growth over the past year (0.5%) underperformed the Professional Services industry 21.3%.


Return on Equity

High ROE: STN's Return on Equity (9.6%) is considered low.


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Financial Health

How is Stantec's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: STN's short term assets (CA$1.8B) exceed its short term liabilities (CA$1.2B).

Long Term Liabilities: STN's short term assets (CA$1.8B) do not cover its long term liabilities (CA$2.1B).


Debt to Equity History and Analysis

Debt Level: STN's net debt to equity ratio (61.8%) is considered high.

Reducing Debt: STN's debt to equity ratio has increased from 41.3% to 70.3% over the past 5 years.

Debt Coverage: STN's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: STN's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.21%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 24 2022Ex Dividend DateSep 28 2022Dividend Pay DateOct 17 202219 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: STN's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: STN's dividend (1.21%) is low compared to the top 25% of dividend payers in the Canadian market (5.86%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.9%), STN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.7%), STN's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.8yrs

Average management tenure


CEO

Gord Johnston (56 yo)

4.67yrs

Tenure

CA$6,300,452

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 ($USD4.64M) is about average for companies of similar size in the Canadian market ($USD4.73M).

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 (4.8 years average tenure).


Board Members

Experienced Board: STN's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: STN insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

TSX:STN Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
13 Sep 22BuyCA$63,667Mario FinisIndividual1,000CA$63.79
17 Aug 22SellCA$422,557Leonard CastroIndividual6,470CA$65.60
15 Aug 22SellCA$64,750Leonard CastroIndividual1,000CA$64.75
04 Jan 22BuyCA$209,537Catherine ScheferIndividual2,986CA$70.17
22 Dec 21SellCA$285,920Valentino DiMannoIndividual4,000CA$71.48
20 Dec 21SellCA$137,348Michael KennedyIndividual2,000CA$68.67
17 Dec 21BuyCA$522,943Gordon JohnstonIndividual7,500CA$69.73
09 Dec 21SellCA$178,425Valentino DiMannoIndividual2,500CA$71.37
09 Dec 21SellCA$621,938Robert SeagerIndividual8,740CA$71.16
06 Dec 21SellCA$355,850Valentino DiMannoIndividual5,000CA$71.17
30 Nov 21BuyCA$34,708Theresa B. JangIndividual500CA$69.42
19 Nov 21SellCA$136,971Valentino DiMannoIndividual1,895CA$72.28
09 Nov 21SellCA$261,838Michael KennedyIndividual4,000CA$68.73
01 Oct 21BuyCA$14,401Shelley Ann BrownIndividual246CA$58.54

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 55.97% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.31%
Mackenzie Financial Corporation
13,625,950CA$809.7m11.45%0.76%
8.98%
Jarislowsky, Fraser Limited
9,941,486CA$590.7m-1.25%2.62%
3.41%
The Vanguard Group, Inc.
3,780,658CA$224.6m1.48%no data
2.45%
BMO Asset Management Corp.
2,708,695CA$161.0m3.58%0.07%
2.35%
IG Investment Management, Ltd.
2,597,995CA$154.4m0%0.37%
2.23%
RBC Global Asset Management Inc.
2,473,055CA$146.9m-11.46%0.08%
2.07%
Pictet Asset Management Limited
2,296,917CA$136.5m-2.04%0.09%
1.83%
Franklin Resources, Inc.
2,031,620CA$120.7m34.18%0.04%
1.8%
Fiera Capital Corporation
1,998,637CA$118.8m22.58%0.13%
1.67%
Allianz Asset Management AG
1,846,142CA$109.7m-3.5%0.07%
1.42%
RBC Dominion Securities Inc., Asset Management Arm
1,576,535CA$93.7m3.07%0.1%
1.36%
BNPP Asset Management France
1,509,237CA$89.7m0%0.22%
1.32%
BNPP Asset Management Holding
1,467,023CA$87.2m0%0.13%
1.28%
Connor, Clark & Lunn Investment Management Ltd.
1,417,278CA$84.2m-14.74%0.37%
1.27%
Manulife Asset Management
1,405,086CA$83.5m19.2%0.06%
1.23%
Alberta Investment Management Corporation
1,366,663CA$81.2m-17.2%0.46%
1.2%
Wellington Management Group LLP
1,328,096CA$78.9m11.26%0.01%
1.19%
Burgundy Asset Management Ltd.
1,321,465CA$78.5m-8.53%0.59%
1.18%
Amundi Asset Management
1,305,661CA$77.6m70.19%0.02%
1.09%
Norges Bank Investment Management
1,204,327CA$71.6m0%0.01%
1%
Caisse de dépôt et placement du Québec
1,105,811CA$65.7m0%0.07%
0.93%
TD Asset Management, Inc.
1,025,658CA$60.9m-18.6%0.04%
0.83%
Invesco Capital Management LLC
917,164CA$54.5m-3.71%0.03%
0.78%
Cidel Asset Management Inc.
861,280CA$51.2m32.83%1.73%
0.78%
Industrial Alliance Investment Management Inc.
858,987CA$51.0m0%0.51%

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
  • Implied Market Cap: CA$6.580b
  • Shares outstanding: 110.73m
  • Website: https://www.stantec.com

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STNTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 1994
STNNYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 1994
S3ADB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1994
STN NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNMar 1994

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 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.