Stantec (STN) AI Stock Analysis

• Market Cap: C$17.22B
• Dividend Yield: 0.59%
• Average Volume (3M): 260.71K
• Price to Earnings (P/E): 44.6
• Beta (1Y): 0.72
• Revenue Growth: 15.62%
• EPS Growth: 9.66%
• Country: CA
• Employees: 32,000
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 1.16
• Shares Outstanding: 114,066,990
• 10 Day Avg. Volume: 243,926
• 30 Day Avg. Volume: 260,708
• PEG Ratio: 8.05
• Price to Book (P/B): 5.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$156.00
• Price Target Upside: 1.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 79 Outperform
• Price Target: C$171.00 ▲(11.61%Upside)

Stantec's overall stock score is driven by its strong financial performance and positive earnings outlook, bolstered by strategic acquisitions and project wins. While technical indicators are favorable, valuation concerns slightly temper the outlook.

Positive Factors

Earnings

Stantec's EBITDA increased 19% year-over-year, surpassing both the consensus and the analyst's estimates.

Financial performance

The target price increased to $145 due to upward estimate revisions and rolling forward the valuation base.

Strategic positioning

Stantec remains well-positioned to capitalize on secular demand trends including infrastructure development, energy transition, climate change, and reshoring.

Negative Factors

Competitive challenges

Despite positive outlooks, exceeding many targets like Adjusted EBITDA margin and Adjusted EPS growth remains a challenge amidst competitive pressures.

Stantec Business Overview & Revenue Model

Company Description

Stantec Inc. is a global design and consulting services firm headquartered in Edmonton, Alberta, Canada. The company operates in diverse sectors including infrastructure, water, energy, and built environment, providing engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics services. Stantec collaborates with clients across various industries to deliver sustainable solutions and innovative designs that enhance the quality of life in communities worldwide.

How the Company Makes Money

Stantec makes money primarily through providing professional consulting services across its key sectors: infrastructure, water, energy, and the built environment. The company generates revenue by offering engineering and architectural design services, environmental consulting, and project management. Its revenue model is based on fee-for-service arrangements, where clients are billed for the time and expertise provided by its professionals on a project basis. Significant partnerships with government agencies, private sector clients, and other organizations also contribute to its earnings. Stantec's diverse portfolio and global presence enable it to secure a steady stream of projects and maintain a robust financial performance.

Stantec Financial Statement Overview

Summary

Stantec demonstrates robust financial performance with consistent revenue growth, improving profit margins, and strong cash flow management. The company's stable debt position and increasing return on equity further enhance its financial health, despite moderate reliance on debt financing.

Income Statement

Stantec's income statement reveals robust growth with a steady increase in revenue over the years, culminating in a TTM revenue of $7.7 billion. Gross profit margin remains strong, and the net profit margin has improved to 5.01% in TTM from 4.82% in 2024, indicating efficient cost management. The EBIT and EBITDA margins have also shown consistent improvement, reflecting operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a balanced growth trajectory with a healthy equity base. The debt-to-equity ratio has remained stable, indicating effective leverage management. Return on equity has been steadily growing, showing improved profitability relative to equity. However, the equity ratio indicates a moderate reliance on debt financing, which could pose risks if not managed well.

Cash Flow

Stantec's cash flow statement demonstrates strong cash generation capabilities, with TTM operating cash flow surpassing $666 million. The free cash flow has consistently grown, showing effective capital expenditure management. The operating cash flow to net income ratio indicates solid cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.70B	7.50B	6.48B	5.68B	4.58B	4.73B
Gross Profit	3.13B	3.20B	2.46B	2.42B	1.96B	1.93B
EBITDA	931.50M	901.70M	801.00M	677.50M	523.40M	491.50M
Net Income	385.90M	361.50M	331.20M	247.00M	200.70M	171.10M
Balance Sheet
Total Assets	6.94B	6.96B	6.08B	5.65B	5.23B	4.39B
Cash, Cash Equivalents and Short-Term Investments	282.80M	254.70M	352.90M	148.30M	193.90M	285.00M
Total Debt	2.05B	2.04B	1.73B	1.92B	1.92B	1.32B
Total Liabilities	3.90B	4.01B	3.32B	3.37B	3.22B	2.46B
Stockholders Equity	3.04B	2.95B	2.76B	2.29B	2.00B	1.93B
Cash Flow
Free Cash Flow	572.10M	504.10M	444.10M	229.40M	346.40M	569.60M
Operating Cash Flow	666.70M	603.10M	544.70M	304.30M	397.00M	603.80M
Investing Cash Flow	-218.50M	-605.00M	-201.70M	-73.80M	-764.80M	-102.00M
Financing Cash Flow	-419.90M	-152.10M	-134.00M	-296.70M	276.50M	-412.60M

Stantec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STN, the sentiment is Positive. The current price of 153.21 is above the 20-day moving average (MA) of 148.11, above the 50-day MA of 142.39, and above the 200-day MA of 122.13, indicating a bullish trend. The MACD of 2.69 indicates Negative momentum. The RSI at 73.35 is Negative, neither overbought nor oversold. The STOCH value of 93.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:STN.

Stantec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDT	79 Outperform	C$1.64B	16.35	26.31%	2.83%	16.14%	27.71%
STN	79 Outperform	C$17.22B	44.62	13.13%	0.59%	15.62%	9.66%
WSP	78 Outperform	C$36.76B	51.24	9.42%	0.53%	16.77%	21.38%
BDGI	76 Outperform	$1.71B	25.57	19.89%	1.48%	10.97%	24.27%
ATRL	73 Outperform	C$16.39B	56.25	8.66%	0.08%	12.05%	1.32%
Sector *	67 Neutral	$2.55B	12.77	9.94%	4.12%	-2.21%	31.02%
ARE	55 Neutral	C$1.30B	―	-9.26%	3.68%	1.70%	-154.73%

Stantec Corporate Events

Stantec to Announce Q2 2025 Financial Results

Stantec announced it will release its second quarter 2025 financial results on August 13, 2025, followed by a webcast and conference call on August 14, 2025, led by CEO Gord Johnston and CFO Vito Culmone. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, reinforcing its position as a leader in sustainable design and engineering.

The most recent analyst rating on (TSE:STN) stock is a Buy with a C$134.00 price target. To see the full list of analyst forecasts on Stantec stock, see the TSE:STN Stock Forecast page.

Stantec to Lead Design for Mississauga’s Dundas BRT Corridor

Stantec has been selected by the City of Mississauga to lead the design and contract administration for the Dundas Bus Rapid Transit Mississauga East Corridor, a project aimed at enhancing regional transit connectivity and supporting urban growth. With a budget of C$580 million, the project will include dedicated bus lanes, improved accessibility, and environmentally friendly practices, aligning with regional transportation plans and the city’s commitment to sustainable development.

Stantec to Design Largest PFAS Treatment System in Northwestern US

Stantec has been selected by the City of Vancouver, Washington, to design the largest PFAS treatment system in the Northwestern US, aiming to provide cleaner drinking water by removing harmful substances. This project aligns with the EPA’s new regulations requiring public water utilities to reduce PFAS by 2029, showcasing Stantec’s role in helping municipalities meet these standards and ensuring long-term water safety and reliability.

Stantec’s 2024 Sustainability Report Highlights Global Impact and Financial Success

Stantec has released its 18th annual Sustainability Report, highlighting its achievements in sustainability and financial performance for 2024, with revenues of $4.63 billion. The report underscores Stantec’s commitment to sustainable development goals and its recognition as a top sustainable corporation. Key projects include environmental initiatives in Australia, Canada, the UK, the US, and Uruguay, showcasing Stantec’s role in addressing global challenges and driving community success.