Stantec, Inc. (STN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

SNC-Lavalin Group, Inc.

WSP Global, Inc.

Stantec, Inc.

Bird Construction, Inc.

Badger Infrastructure Solutions Ltd.

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Aecon Group, Inc.

ADF Group, Inc.

Brookfield Business Corp.

SolarBank Corp.

Spark Power Group, Inc.

Why is Stantec, Inc. ?

High Management Efficiency with a high ROCE of 13.32%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.47

Healthy long term growth as Operating profit has grown by an annual rate 15.47%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at CAD 700.6 MM
ROCE(HY) Highest at 14.54%
DIVIDEND PER SHARE(HY) Highest at CAD 3.59

With ROE of 16.25%, it has a expensive valuation with a 5.68 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 37.86%, its profits have risen by 30.1% ; the PEG ratio of the company is 1.2

High Institutional Holdings at 66.02%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 37.86% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Stantec, Inc. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Stantec, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Stantec, Inc.

-100.0%

23.82

25.01%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.78%

EBIT Growth (5y)

15.47%

EBIT to Interest (avg)

6.47

Debt to EBITDA (avg)

1.55

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.58

Tax Ratio

22.45%

Dividend Payout Ratio

26.51%

Pledged Shares

Institutional Holding

62.77%

ROCE (avg)

13.32%

ROE (avg)

13.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.91

EV to EBIT

27.37

EV to EBITDA

18.87

EV to Capital Employed

4.43

EV to Sales

2.48

PEG Ratio

1.21

Dividend Yield

ROCE (Latest)

16.18%

ROE (Latest)

16.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 700.6 MM

ROCE(HY)

Highest at 14.54%

DIVIDEND PER SHARE(HY)

Highest at CAD 3.59

INTEREST COVERAGE RATIO(Q)

Highest at 1,248.11

RAW MATERIAL COST(Y)

Fallen by -3.42% (YoY

CASH AND EQV(HY)

Highest at CAD 598.5 MM

NET SALES(Q)

Highest at CAD 1,964.3 MM

PRE-TAX PROFIT(Q)

Highest at CAD 182.8 MM

NET PROFIT(Q)

Highest at CAD 138.2 MM

EPS(Q)

Highest at CAD 1.19

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 18.96%

Here's what is working for Stantec, Inc.

Operating Cash Flow

Highest at CAD 700.6 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Interest Coverage Ratio

Highest at 1,248.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at CAD 3.59 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 1,964.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Pre-Tax Profit

Highest at CAD 182.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 138.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 1.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 598.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -3.42% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Stantec, Inc.

Dividend Payout Ratio

Lowest at 18.96%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)