Stantec Inc. provides professional consulting services in the area of infrastructure and facilities for clients in the public and private sectors in Canada, the United States, and internationally.
Mediocre balance sheet with limited growth.
Share Price & News
How has Stantec's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: S3A has not had significant price volatility in the past 3 months.
7 Day Return
DE Professional Services
1 Year Return
DE Professional Services
Return vs Industry: S3A exceeded the German Professional Services industry which returned 0.3% over the past year.
Return vs Market: S3A exceeded the German Market which returned 0.2% over the past year.
Price Volatility Vs. Market
How volatile is Stantec's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Stantec undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: S3A (€26.8) is trading above our estimate of fair value (€24.4)
Significantly Below Fair Value: S3A is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: S3A is poor value based on its PE Ratio (25.9x) compared to the Professional Services industry average (17.9x).
PE vs Market: S3A is poor value based on its PE Ratio (25.9x) compared to the German market (19.3x).
Price to Earnings Growth Ratio
PEG Ratio: S3A is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: S3A is overvalued based on its PB Ratio (2.3x) compared to the XE Professional Services industry average (1.9x).
How is Stantec forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: S3A's forecast earnings growth (20.8% per year) is above the savings rate (0.2%).
Earnings vs Market: S3A's earnings (20.8% per year) are forecast to grow slower than the German market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: S3A's revenue (4.4% per year) is forecast to grow slower than the German market (5.8% per year).
High Growth Revenue: S3A's revenue (4.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: S3A's Return on Equity is forecast to be low in 3 years time (13.1%).
How has Stantec performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: S3A has high quality earnings.
Growing Profit Margin: S3A's current net profit margins (4.8%) are lower than last year (5.2%).
Past Earnings Growth Analysis
Earnings Trend: S3A's earnings have grown by 4.7% per year over the past 5 years.
Accelerating Growth: S3A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: S3A had negative earnings growth (-0.3%) over the past year, making it difficult to compare to the Professional Services industry average (-2.6%).
Return on Equity
High ROE: S3A's Return on Equity (8.9%) is considered low.
How is Stantec's financial position?
Financial Position Analysis
Short Term Liabilities: S3A's short term assets (CA$1.6B) exceed its short term liabilities (CA$924.0M).
Long Term Liabilities: S3A's short term assets (CA$1.6B) do not cover its long term liabilities (CA$1.8B).
Debt to Equity History and Analysis
Debt Level: S3A's debt to equity ratio (45.6%) is considered high.
Reducing Debt: S3A's debt to equity ratio has increased from 38.1% to 45.6% over the past 5 years.
Debt Coverage: S3A's debt is well covered by operating cash flow (54.7%).
Interest Coverage: S3A's interest payments on its debt are well covered by EBIT (5.1x coverage).
What is Stantec's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: S3A's dividend (1.49%) is higher than the bottom 25% of dividend payers in the German market (1.28%).
High Dividend: S3A's dividend (1.49%) is low compared to the top 25% of dividend payers in the German market (3.93%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, S3A has been paying a dividend for less than 10 years.
Growing Dividend: S3A's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (36.7%), S3A's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Gord Johnston (53yo)
Mr. Gordon Allan Johnston, P.Eng., also known as Gord, has been the President, Chief Executive Officer and Director of Stantec Inc. since January 1, 2018. Mr. Johnston served as an Executive Vice President ...
CEO Compensation Analysis
Compensation vs Market: Gord's total compensation ($USD2.53M) is about average for companies of similar size in the German market ($USD2.36M).
Compensation vs Earnings: Gord's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||1.33yrs||CA$1.22m||0.010% CA$311.3k|
|Executive VP & Chief Business Officer||15.33yrs||CA$1.16m||0.034% CA$1.0m|
|Executive VP and Chief Practice & Project Officer||2.42yrs||CA$1.16m||0.014% CA$424.9k|
|Executive VP & COO of Global||0.33yr||no data||0.0065% CA$195.9k|
|Senior VP & Chief Information Officer||1.33yrs||no data||no data|
|Senior VP||10.42yrs||no data||0.019% CA$577.3k|
|Vice President of Sector Marketing & Client Development||no data||no data||no data|
|Senior VP & Chief Human Resources Officer||0.33yr||no data||0.0028% CA$83.2k|
|Senior Vice President of Finance & Treasury||no data||no data||no data|
Experienced Management: S3A's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
|Independent Director||7yrs||CA$239.17k||0.020% CA$604.5k|
|Independent Director||2.17yrs||CA$222.06k||0.00090% CA$27.1k|
|Independent Chairman of the Board||1yr||CA$314.97k||0.029% CA$866.0k|
|Independent Director||no data||no data||0.0011% CA$33.4k|
|Independent Director||1.42yrs||CA$229.74k||0.0021% CA$63.0k|
|Independent Director||3.42yrs||CA$235.00k||no data|
Experienced Board: S3A's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: S3A insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Stantec Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Stantec Inc.
- Ticker: S3A
- Exchange: DB
- Founded: 1954
- Industry: Research and Consulting Services
- Sector: Commercial Services
- Market Cap: CA$4.625b
- Listing Market Cap: CA$3.013b
- Shares outstanding: 111.17m
- Website: https://www.stantec.com
Number of Employees
- Stantec Inc.
- 10220-103 Avenue NW
- Suite 400
- T5J 0K4
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|STN||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Mar 1994|
|STN||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Mar 1994|
|S3A||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Mar 1994|
Stantec Inc. provides professional consulting services in the area of infrastructure and facilities for clients in the public and private sectors in Canada, the United States, and internationally. It operates through three segments: Consulting Services – Canada, Consulting Services – United States, and Consulting Services – Global. The company offers consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management and planning, 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. In addition, the company provides structural, mechanical, electrical, plumbing, and hydraulics engineering services. It serves urban regeneration, infrastructure, education, energy, industrial, building, tourism and leisure, and waste and water sectors, as well as office and commercial, residential, and retail and town centers. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/31 09:42|
|End of Day Share Price||2020/05/29 00:00|
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.