Stantec (STN) AI Stock Analysis

• Market Cap: $14.80B
• Dividend Yield: 0.68%
• Average Volume (3M): 450.11K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.86
• Revenue Growth: 11.73%
• EPS Growth: 41.17%
• Country: CA
• Employees: 32,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.53
• Shares Outstanding: 114,066,990
• 10 Day Avg. Volume: 443,363
• 30 Day Avg. Volume: 450,107
• PEG Ratio: 3.17
• Price to Book (P/B): 4.37
• Price to Sales (P/S): 2.19
• P/FCF Ratio: 25.52
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 2.88
• Enterprise Value/Gross Profit: 5.64
• Enterprise Value/Ebitda: 20.29
• 1Y Price Target: $170.93
• Price Target Upside: 29.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 5.28
• Revenue Forecast (FY): $6.51B

• Rating: 70 Outperform
• Price Target: C$149.00 ▲(13.03% Upside)

Stantec's overall stock score is driven by strong financial performance and positive earnings call highlights, indicating robust growth and profitability. However, technical analysis shows bearish momentum, and the valuation suggests the stock may be overvalued, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective execution, supporting long-term financial stability and expansion.

Cash Flow Management

Strong cash flow growth enhances financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Market Position

High EBITDA margins reflect operational efficiency and competitive strength, positioning the company well in the engineering and consulting industry.

Negative Factors

Federal Contracting Challenges

Delays in federal contracts can impact backlog growth and revenue visibility, posing risks to future project pipelines and financial performance.

Backlog Growth Concerns

Flat backlog growth in key markets may limit future revenue potential and indicates challenges in securing new projects amidst procurement delays.

Debt Levels

While manageable, maintaining debt levels requires careful cash flow management to avoid financial strain and ensure continued investment capacity.

Stantec Business Overview & Revenue Model

Company Description

Stantec Inc. provides engineering, architecture, and environmental consulting services in the areas of infrastructure and facilities in Canada, the United States, and internationally. The company provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. It also offers structural, mechanical, electrical, plumbing, and hydraulics engineering services; transportation advisory, planning and analytics, transport engineering, and technical design; paleontological and archaeological services for the rail, transportation, water, and power and energy sectors; environmental and infrastructure services; and environmental and cultural resource compliance 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.

How the Company Makes Money

Stantec generates revenue primarily through the provision of professional services in engineering, architecture, and consulting. The company operates on a fee-for-service model, charging clients for its expertise in project planning, design, and management. Key revenue streams include contracts for infrastructure projects, environmental assessments, and building design services. Stantec also benefits from long-term partnerships with government agencies and private enterprises, which provide a steady flow of projects. Additionally, the company pursues opportunities in various markets, including renewable energy and urban development, which contribute to its earnings. Stantec's focus on sustainability and community engagement enhances its competitive positioning and opens avenues for securing new contracts.

Stantec Financial Statement Overview

Summary

Stantec's financial performance is strong, with significant revenue growth of 29.6% and robust profitability margins. The company maintains a healthy balance sheet with a manageable debt-to-equity ratio and strong return on equity. Cash flow is positive, with a 13.1% growth in free cash flow, indicating effective cash management.

Income Statement

Stantec's income statement shows strong performance with a consistent increase in revenue, highlighted by a significant TTM revenue growth rate of 29.6% compared to the previous year. The company maintains healthy gross and net profit margins, with TTM gross profit margin at 43.1% and net profit margin at 5.6%. EBIT and EBITDA margins are also robust, indicating efficient operational management.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.70 in TTM, showing improvement from previous years. Return on equity is strong at 14.9%, indicating effective use of equity to generate profits. The equity ratio remains solid, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis reveals a positive trend with a 13.1% growth in free cash flow in TTM, supported by a strong free cash flow to net income ratio of 0.90. Operating cash flow to net income ratio is healthy, reflecting good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.77B	5.87B	5.07B	4.46B	3.64B	3.68B
Gross Profit	3.45B	3.20B	2.74B	2.42B	1.96B	1.93B
EBITDA	959.60M	812.50M	682.40M	568.80M	411.40M	439.80M
Net Income	483.50M	361.50M	316.50M	247.00M	200.70M	171.10M
Balance Sheet
Total Assets	8.12B	6.96B	5.77B	5.65B	5.23B	4.39B
Cash, Cash Equivalents and Short-Term Investments	382.30M	228.50M	352.90M	148.30M	193.90M	289.50M
Total Debt	2.71B	2.04B	1.70B	1.92B	1.92B	1.32B
Total Liabilities	4.89B	4.01B	3.32B	3.37B	3.22B	2.46B
Stockholders Equity	3.23B	2.95B	2.45B	2.29B	2.00B	1.93B
Cash Flow
Free Cash Flow	804.90M	504.10M	419.40M	235.80M	351.20M	572.60M
Operating Cash Flow	857.40M	603.10M	520.00M	304.30M	397.00M	603.80M
Investing Cash Flow	-511.50M	-605.00M	-201.70M	-73.80M	-764.80M	-102.00M
Financing Cash Flow	-257.50M	-152.10M	-109.30M	-296.70M	276.50M	-412.60M

Stantec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 131.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STN, the sentiment is Negative. The current price of 131.82 is above the 20-day moving average (MA) of 131.47, below the 50-day MA of 142.50, and below the 200-day MA of 140.67, indicating a neutral trend. The MACD of -3.28 indicates Negative momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 71.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:STN.

Stantec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSP	75 Outperform	C$32.56B	37.46	11.21%	0.60%	18.85%	29.60%
ATRL	71 Outperform	C$14.94B	6.03	56.38%	0.09%	13.97%	715.65%
STN	70 Outperform	$14.80B	31.10	15.96%	0.68%	11.73%	41.17%
BDT	69 Neutral	C$1.61B	17.19	21.68%	2.88%	6.26%	0.52%
BDGI	67 Neutral	$2.53B	29.64	22.05%	0.99%	13.02%	52.88%
ARE	65 Neutral	C$2.02B	244.64	0.92%	2.38%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Stantec Corporate Events

Stantec to Announce Q3 2025 Financial Results and Host Conference Call

Stantec announced it will release its third quarter 2025 financial results on November 13, 2025, followed by a webcast and conference call on November 14, 2025. This announcement underscores Stantec’s commitment to transparency and engagement with stakeholders, as it provides insights into the company’s performance and strategic direction.