Stantec Inc. (STN)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
Stantec Inc. trades at USD70.45, close to the USD72.75 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 59 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 22.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Stantec Inc.
Stantec Inc. provides professional services in the areas of infrastructure and facilities to private and public sectors in Canada, the United States, and internationally. The company offers evaluation, planning, and designing infrastructure solutions; various permitting, conservation, ecosystem restoration, health sciences, and environmental, social, and governance strategy services; solutions for sustainable water resources, planning, management, and infrastructure; integrated architecture, engineering, interior design, and planning solutions for buildings; and energy and resources solutions. It also provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. In addition, the company provides fire engineering, electrical, mechanical, hydraulics, buildings sustainability, and civil expertise services; services in mission critical, academic, civic, cultural, aviation, science and technology, commercial, industrial, and workplace; and delivers services to local authorities, government departments, private clients, and utility companies. Further, the company is involved in the planning, design, construction administration, commissioning, maintenance, decommissioning, and remediation services. Additionally, it offers infrastructure planning, inspection, project management, and construction management services; transportation, buildings, and environmental services; and energy and sustainability, fire safety, civil and structural, and mechanical, electrical and plumbing (MEP) engineering, transport, environmental, and geotechnical services. 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.
STN passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
12 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Burgundy Asset Management, Burgundy Asset Management Ltd.$93.22M · 0.9% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$65.98M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$55.32M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$53.81M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$26.53M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Stantec Inc. (STN) undervalued?
Against our discounted cash flow estimate of USD72.75, STN at USD70.45 is 3% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own STN?
12 of the institutions we track reported a position in STN in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is STN's P/E ratio?
STN trades at 22.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for STN, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.