OTCPK:SNCA.F

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

10.1%

SNCA.F

2.0%

US Construction

1.0%

US Market


1 Year Return

-62.3%

SNCA.F

4.1%

US Construction

6.7%

US Market

Return vs Industry: SNCA.F underperformed the US Construction industry which returned 4.1% over the past year.

Return vs Market: SNCA.F underperformed the US Market which returned 6.7% over the past year.


Share holder returns

SNCA.FIndustryMarket
7 Day10.1%2.0%1.0%
30 Day-12.7%-1.6%-1.8%
90 Day-27.0%-2.1%-1.8%
1 Year-61.7%-62.3%5.0%4.1%9.1%6.7%
3 Year-63.7%-65.6%23.2%20.4%46.1%36.6%
5 Year-64.5%-67.8%23.7%19.5%66.9%48.6%

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

No news available

Valuation

Is SNC-Lavalin Group undervalued based on future cash flows and its price relative to the stock market?

2.86x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: SNCA.F ($13.68) is trading above our estimate of fair value ($6.52)

Significantly Undervalued: SNCA.F is trading above our estimate of fair value.


Price Based on Earnings

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

PE vs Market: SNCA.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: SNCA.F is overvalued based on its PB Ratio (2.9x) compared to the US Construction industry average (1.6x).


Next Steps

Future Growth

How is SNC-Lavalin Group expected 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 Estimates


Future Annual Growth Analysis

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

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

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

Revenue vs Market: SNCA.F's revenue is expected to decline over the next 3 years (-4.6% per year).

High Growth Revenue: SNCA.F's revenue is forecast to decline over the next 3 years (-4.6%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: SNCA.F'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: SNCA.F is unprofitable, and losses have increased over the past 5 years at a rate of -62.4% per year.

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

Earnings vs Industry: SNCA.F is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (2.6%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

ROCE Improving: SNCA.F 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: SNCA.F's short term assets (CA$4.9B) do not cover its short term liabilities (CA$6.3B)

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: SNCA.F's debt is covered by short term assets (assets are 1.105510x debt).


Next Steps

Dividend

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

0.83%

Expected Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.5%markettop25%3.8%industryaverage1.1%forecastin3Years0.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SNCA.F's dividend (0.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SNCA.F's dividend (0.44%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: SNCA.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: SNCA.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SNCA.F is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SNCA.F's dividend in 3 years as they are not forecast to pay a notable one for the US 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?

5.6yrs

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 US market.

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


Management Age and Tenure

5.6yrs

Average Tenure

59yo

Average Age

Experienced Management: SNCA.F's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

61yo

Average Age

Experienced Board: SNCA.F'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

  • Hartland J. Paterson

    Executive VP & General Counsel

    • Tenure: 4.1yrs
  • 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: SNCA.F
  • Exchange: OTCPK
  • Founded: 1911
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CA$3.163b
  • Listing Market Cap: CA$2.402b
  • 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 Analysis2019/10/14 02:44
End of Day Share Price2019/10/11 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.

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