Stantec STN.TO
Stantec is a Canadian engineering and construction company providing design, consulting, and project management services for infrastructure, buildings, and energy worldwide. Stantec presents solid fundamentals with a 15.03% ROIC and 11.50% revenue growth, but its valuation (P/E 22.06) and very negative momentum (7th percentile in 52 weeks) suggest caution. The forward P/E of 14.11 indicates an expectation of improvement, but rising rates could pressure its valuation.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Stantec is a Canadian engineering and construction company providing design, consulting, and project management services for infrastructure, buildings, and energy worldwide. Stantec presents solid fundamentals with a 15.03% ROIC and 11.50% revenue growth, but its valuation (P/E 22.06) and very negative momentum (7th percentile in 52 weeks) suggest caution. The forward P/E of 14.11 indicates an expectation of improvement, but rising rates could pressure its valuation.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.2 |
| Quality / Moat | 7.0 |
| Valuation | 5.9 |
| Growth | 6.7 |
| Dividend | 4.8 |
| Momentum | 0.9 |
| Risk & Context | 7.3 |
OVERALL SCORE: 5.9/10
Context and risks
Stantec's engineering and construction business is exposed to infrastructure demand, which can be affected by rising interest rates (10Y at 5.17%) by making project financing more expensive. However, its geographic diversification and focus on sectors such as energy and water mitigate the impact.
News considered in the analysis
- Stantec And 2 Canadian Undervalued Stocks To Watch — Listículo genérico sin información nueva sobre la empresa.
- 3 Canadian Stocks Trading At Least 38% Below Fair Value — Opinión de valoración sin catalizador concreto.
- 3 Canadian Stocks Tied To The $1tn Infrastructure And Energy Buildout — Señala exposición a un ciclo de infraestructura y energía de gran escala, que podría beneficiar la cartera de proyectos de Stantec.
- These Canadian companies with U.S. contracts are a buy for this analyst on 'any significant weakness' — Recomendación de compra de un analista, basada en la fortaleza de los contratos en EE. UU. y la debilidad reciente del precio.
- 3 Stocks for Investors Seeking High Quality Value in Infrastructure Metals and Space — Listículo sin información específica accionable.
Verdict: Hold; wait for momentum to improve or the price to offer a greater margin of safety before buying.
Main risk: The main risk is the sensitivity of the engineering and construction business to a high interest rate environment, which can slow infrastructure investment and pressure valuation multiples.
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