Stantec Inc

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STN : NYSE : Industrial Goods
$23.66 | %
Today's Range: 23.58 - 24.06
Avg. Daily Volume: 19,600
08/26/16 - 4:02 PM ET

Financial Analysis


STANTEC INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. STANTEC INC has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 55.35% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)777.33593.92
EBITDA ($mil)86.0676.02
EBIT ($mil)53.1155.84
Net Income ($mil)21.1743.17


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)169.2626.97
Total Assets ($mil)4095.822218.07
Total Debt ($mil)1106.38396.91
Equity ($mil)1860.311197.47


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin53.6354.01
EBITDA Margin11.0712.8
Operating Margin6.839.4
Sales Turnover0.631.01
Return on Assets3.17.56
Return on Equity6.8214.01
Debt Q2 FY16 Q2 FY15
Current Ratio1.61.65
Debt/Capital0.370.25
Interest Expense6.922.86
Interest Coverage7.6819.5


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)113.9194.19
Div / share0.090.09
EPS0.20.46
Book value / share16.3312.71
Institutional Own % n/a n/a
Avg Daily Volume19559.014846.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 34.49 for the Professional Services industry and a discount compared to the S&P 500 average of 25.13. To use another comparison, its price-to-book ratio of 1.46 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 7.90. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, STANTEC INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
STN 18.21 Peers 34.49   STN 8.87 Peers 16.92

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

STN is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

STN is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
STN NA Peers 20.36   STN NA Peers 1.44

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STN 1.46 Peers 7.90   STN -26.20 Peers 99.45

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

STN is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, STN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
STN 1.05 Peers 3.69   STN 15.26 Peers 40.45

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

STN is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

STN significantly trails its peers on the basis of sales growth

 

 

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