* Note: Prices are in Million (M) USD.
Description:
Stantec Inc. is a leading global design and consulting firm headquartered in Edmonton, Canada, renowned for its expertise in infrastructure and facilities across multiple sectors, including environmental, transportation, buildings, and water resources. With a strong presence in North America and expanding international operations, Stantec is dedicated to delivering sustainable and innovative solutions that enhance community well-being. The company's strategic emphasis on integrating advanced digital technologies and maintaining a diversified portfolio underpins its potential for sustained growth in a complex and evolving market environment.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $362 M
Debt : $2,120 M
EBITDA : $991 M
Net Debt (Debt - Cash): $1,758 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Trade & services
Industry: Services-engineering services
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 16.76
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $7,500 M
Revenue 5 Years Ago (2019-12-31): $3,723 M
Total Growth over 5 Years: 101.5%
5-Year Revenue CAGR (Historical): 15.0%
Forward 5-Year CAGR (Tapered): 10.5%
Since historical Revenue CAGR is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $114 M
Share Count 5 Years Ago (2020-12-31): $112 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $6.04
Trailing 12-Month Earnings Per Share (EPS): $5.25
Average Earnings Per Share (EPS): $5.64
Dividend Per Share (DPS): $1
Payout Ratio: 16%
Dividend Yield: 0.95%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 19 valid ROE years (max 20).Average ROE: -10.0%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $94.59
52-Week Low: $72.82
Threshold Price (15% Above 52-Week Low): $83.74
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $10,688 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 17 points to above Stantec Inc (STN) stock.
Last 20 Years Avg PE
15.34, Fair Value PE
12, Industry Based PE
16, Growth Based PE
15, Risk-Free Anchored PE (25% MoS)
18.34. Based on these 5 values, average assigned is
15.34. Value-Trades has assined P/E value
15.34. An average (Current Year EPS + Next Year EPS) earning per share is
$5.6445.
Fair value using multiple P/Es (blended): $86.56 (PE 15.34 × EPS $5.64)
So the Final Fair Value is: $86.56
Understanding the Value-Trades P/E Blend (click to expand)
▾
What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $5.64
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 23.1 | $130.39 |
| 20 Yrs Avg-PE | 15.34 | $86.59 |
| Value-Trades Assigned | 15.34 | $86.59 |
