# Stantec Inc. (STN.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Construction & Engineering. Price C$101.78, market value C$11.4 billion.

## Valuation
- **P/E (trailing): 23.0×** (5-yr avg 33.8×, 3-yr avg 34.2×). Stantec Inc. trades at 23.0× trailing earnings, well below its own five-year average of 33.8×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 14.7×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.45**. A PEG of 0.45 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.3×**. Each dollar of revenue is priced at 1.3×.
- **Price / book: 3.4×**. The shares trade at 3.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 12.2×**. Enterprise value is 12.2× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.8%** (5-yr avg 4.2%). Free cash flow equals 5.8% of the market value, above its five-year average of 4.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.4%**. The inverse of the P/E: 4.4% of the price is earned each year.

## Profitability
- **Gross margin: 41.0%**. Stantec Inc. keeps 41.0% of revenue after the direct cost of what it sells.
- **Operating margin: 9.5%**. 9.5% of revenue is left after running the business.
- **Net margin: 5.9%**. 5.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.8%**. 14.8% on shareholders' equity is solid.
- **Return on invested capital: 10.2%**. Return on all capital, debt included, is 10.2%.
- **Return on assets: 6.3%**. Each dollar of assets produces 6.3% of profit.

## Growth
- **Revenue growth (1 yr): 38.8%** (3-yr 22.3%/yr, 5-yr 17.2%/yr). Revenue grew 38.8% over the last year, against 17.2% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 32.5%** (3-yr 23.7%/yr, 5-yr 24.2%/yr). Earnings per share rose 32.5%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 49.7%/yr**. Free cash flow has compounded at 49.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.97**. Debt is 0.97 times equity, moderate leverage.
- **Net debt / EBITDA: 2.4×**. It would take 2.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 1.23** (quick 1.23). Current assets cover the next year's liabilities 1.23 times.
- **Altman Z-score: 3.44**. A Z-score of 3.44 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.96%** (C$0.94 per share, trailing). Stantec Inc. yields 0.96%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 21%** (16% of free cash flow). 21% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 14**. 14 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 7.7%/yr** (1-yr 7.1%). The dividend has grown 7.7% a year over five years.
- **Shareholder yield: 2.5%**. Dividends plus net buybacks return 2.5% of the market value a year.

## Price and momentum
- **Total return (1 yr): -32.1%** (YTD -21.1%, 3-mo -0.9%). The shares are down 32.1% over twelve months including dividends.
- **From 52-week high: -36.4%** (9.1% above the low). Trading 36% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 0.81** (volatility 29%). Beta of 0.81 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=STN.TO · Page: https://foliofundamentals.com/stocks/stn.to

Not investment advice.