ScoreWhy is Stantec, Inc. ?
1
High Management Efficiency with a high ROCE of 13.32%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.47
3
Healthy long term growth as Operating profit has grown by an annual rate 15.47%
4
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
5
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
6
High Institutional Holdings at 66.02%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
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 ReportHow 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
21.87%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.48%
EBIT Growth (5y)
16.56%
EBIT to Interest (avg)
6.47
Debt to EBITDA (avg)
1.55
Net Debt to Equity (avg)
0.42
Sales to Capital Employed (avg)
1.59
Tax Ratio
22.45%
Dividend Payout Ratio
21.41%
Pledged Shares
0
Institutional Holding
67.16%
ROCE (avg)
13.32%
ROE (avg)
13.16%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
4.34
EV to EBIT
20.44
EV to EBITDA
13.99
EV to Capital Employed
3.25
EV to Sales
1.92
PEG Ratio
1.29
Dividend Yield
NA
ROCE (Latest)
15.90%
ROE (Latest)
16.00%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 857.4 MM
ROCE(HY)
Highest at 16.22%
DIVIDEND PER SHARE(HY)
Highest at CAD 3.37
RAW MATERIAL COST(Y)
Fallen by -1.81% (YoY
CASH AND EQV(HY)
Highest at CAD 706 MM
NET SALES(Q)
Highest at CAD 2,140.5 MM
OPERATING PROFIT(Q)
Highest at CAD 323.8 MM
OPERATING PROFIT MARGIN(Q)
Highest at 15.13 %
PRE-TAX PROFIT(Q)
Highest at CAD 205 MM
NET PROFIT(Q)
Highest at CAD 154.68 MM
EPS(Q)
Highest at CAD 1.31
-4What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 17.11%
INTEREST(Q)
Highest at CAD 28.5 MM
Here's what is working for Stantec, Inc.
Operating Cash Flow
Highest at CAD 857.4 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Dividend per share
Highest at CAD 3.37 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Net Sales
Highest at CAD 2,140.5 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Operating Profit
Highest at CAD 323.8 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CAD MM)
Operating Profit Margin
Highest at 15.13 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at CAD 205 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Net Profit
Highest at CAD 154.68 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
EPS
Highest at CAD 1.31
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CAD)
Cash and Eqv
Highest at CAD 706 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -1.81% (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
Depreciation
Highest at CAD 90 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Here's what is not working for Stantec, Inc.
Interest
At CAD 28.5 MM has Grown at 34.43%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Interest
Highest at CAD 28.5 MM
in the last five periods and Increased by 34.43% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Dividend Payout Ratio
Lowest at 17.11%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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