One-glance verdict
Undervalued
$193.61 our estimate vs market $69.28
64% below our estimate, below the bear case
Fundamentals snapshot
Stantec Inc.
STN · NYQ · Industrials · Engineering & Construction
Current price
$69.28
52-week range
$65.35 - $114.52
Market cap
$7.79B
Balance sheet
Watch
6.25x Adequate
Net debt $1.68B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 8.6% last year.
- Reward Returns 15.7% on equity, ahead of 33% of its peers.
- Risk Net debt grew 24.0% over 3 years.
- Risk Insider ownership is only 0.1% (peer median: 0.5%).
What this company does
Stantec Inc.
Stantec Inc. is a company that designs and plans major projects like buildings, bridges, and water systems for governments and private businesses. Most of their money comes from these consulting and design services, which are important because they help create the infrastructure we use every day and ensure projects are built well and sustainably.
How the company got here
Stantec started in 1954 as a small, one-person engineering firm in Edmonton, Canada, founded by Dr. Don Stanley. Initially, the company focused on water and sewer projects for small towns. Over the decades, it grew by expanding its services into areas like transportation and infrastructure design, and by acquiring other companies. A significant turning point was in 1998 when the company unified under the single brand name "Stantec," which helped it become a more recognizable global player. Stantec went public on the Toronto Stock Exchange in 1994 and later on the New York Stock Exchange in 2005, providing capital for further expansion and acquisitions, including a major merger in 2016 that significantly boosted its global presence and expertise, particularly in water-related projects. The company has since divested its construction division to focus purely on professional consulting services.
What it actually does
Stantec is a global company that provides professional consulting services. Think of them as expert problem-solvers for big projects. They help design, plan, and manage everything from buildings and bridges to water systems and energy projects. Their clients are typically governments, cities, and private companies that need specialized knowledge to build or improve infrastructure and facilities. Essentially, Stantec offers the brains behind many of the essential structures and systems that communities rely on.
Infrastructure
This is Stantec's largest business area, focusing on the planning, evaluation, and design of infrastructure solutions. This includes projects like roads, bridges, public transit systems, and urban development. They work with both public and private clients to create the foundational structures that communities need to function and grow. This segment is crucial for modernizing cities and ensuring essential services are reliable.
Water
The Water segment addresses the complex challenges related to water resources. This involves everything from ensuring clean drinking water and managing wastewater to restoring ecosystems and planning for sustainable water use. Stantec provides expertise in water treatment, resource management, and infrastructure design to help communities manage this vital resource effectively, especially in the face of changing environmental conditions.
Buildings
This part of Stantec focuses on the design and engineering of buildings. It covers a wide range of structures, including commercial buildings, educational institutions, healthcare facilities, and science and technology centers. They provide integrated architecture, engineering, and interior design services to create functional, sustainable, and innovative spaces that meet the specific needs of their clients.
Energy and Resources
Stantec's Energy and Resources segment provides consulting services related to the energy sector. This includes supporting the transition to cleaner energy sources, optimizing energy generation, and managing resources sustainably. They work with clients in areas like renewable energy, power generation, and the oil and gas industry, offering expertise to navigate the evolving energy landscape.
What management is betting on now
Stantec's current strategy is focused on 'purpose-driven growth,' emphasizing three key areas: Climate Solutions, Communities and Infrastructure of the Future, and Future Technology. Management is betting that by focusing on these trends, they can help clients address major global challenges like climate change and the need for more sustainable and technologically advanced infrastructure. This strategy aims to drive growth by providing innovative solutions that are essential for communities and the environment, positioning Stantec as a leader in sustainable development.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $193.61 vs current price $69.28
Our most-likely fair value is $193.61 a share — about 179.5% above today's price of $69.28, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $1.7B. Interest coverage 6.3x.
Net debt
$1.68B
Interest coverage
6.25x
Stantec Inc.'s profit covers its interest bill about 6.3 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
STN
BASELINE
Stantec Inc.
Total debt $1.94B Interest coverage 6.25x This is the baseline the peer rows are being compared against.
Total debt $3.33B Interest coverage 5.75x -8% vs STN Has roughly the same debt cushion as STN.
Total debt $1.02B Interest coverage 14.85x +138% vs STN Carries about 2.4x more debt cushion than STN.
Total debt $1.07B Interest coverage -6.40x -100% vs STN This peer has almost no interest-payment cushion compared with STN.
Total debt $4.05B Interest coverage 5.92x -5% vs STN Has roughly the same debt cushion as STN.
What you should know
The case for and against STN
3 Rewards
2 Risks
Rewards
-
Revenue grew 8.6% last year.
-
Returns 15.7% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 24.0% over 3 years.
-
Insider ownership is only 0.1% (peer median: 0.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.65x
Forward P/E
14.33x
P/B
3.28x
P/S
1.14x
EV/EBITDA
9.86x
PEG ratio
1.38x
Profitability
How much profit each dollar creates
Gross margin
54.3%
Operating margin
13.5%
Net margin
7.4%
ROE
15.7%
ROA
6.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.81x
Current ratio
1.50x
Quick ratio
1.45x
Total debt
$1.94B
Total cash
$266.89M
Growth
How the business has been compounding
Revenue TTM
$4.82B
Revenue 5Y CAGR
12.8%
EPS TTM
3.20
EPS 5Y CAGR
23.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$610.38M
Free CF TTM
$559.52M
FCF margin
11.6%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
21.2%
Last ex-div date
2026-09-29