STN:TSXStantec Inc Analysis
Data as of 2026-03-14 - not real-time
CA$121.14
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Stantec (STN) is trading at CAD 121.14, roughly 10% below its DCF‑derived fair value of CAD 136, implying a potential upside of about 38%. The stock sits beneath its 20‑day (123.44), 50‑day (131.10) and 200‑day (142.83) moving averages, with a RSI of 40 and a bearish MACD histogram, suggesting short‑term momentum pressure toward the identified support level of CAD 114.84.
Fundamentally, the company posted revenue of CAD 6.5 billion (+11% YoY), an adjusted EBITDA margin of 17.6%, and a forward EPS of CAD 6.89, translating to a forward P/E of 17.6—well under the industry average of 29.1. The dividend yield of 0.81% is supported by a modest payout ratio of 21%, and recent contract wins such as the Arctic Over‑the‑Horizon Radar project reinforce its growth pipeline.
Fundamentally, the company posted revenue of CAD 6.5 billion (+11% YoY), an adjusted EBITDA margin of 17.6%, and a forward EPS of CAD 6.89, translating to a forward P/E of 17.6—well under the industry average of 29.1. The dividend yield of 0.81% is supported by a modest payout ratio of 21%, and recent contract wins such as the Arctic Over‑the‑Horizon Radar project reinforce its growth pipeline.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bearish technical setup (price below SMAs, RSI 40, MACD bearish)
- Proximity to near‑term support at CAD 114.84
- Dividend cushion and low payout ratio
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Revenue growth of 11% and expanding EBITDA margin
- Forward P/E of 17.6 indicating value relative to earnings growth
- Strategic contract wins (e.g., Arctic Radar project) expanding pipeline
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Undervalued relative to DCF fair value with ~38% upside
- Sustainable dividend supported by strong cash flow and low payout
- Long‑term secular demand for infrastructure and ESG‑focused engineering services
Key Metrics & Analysis
Financial Health
Revenue Growth10.90%
Profit Margin7.38%
P/E Ratio28.8
ROE15.50%
ROA6.51%
Debt/Equity78.60
P/B Ratio4.3
Op. Cash FlowCA$862.9M
Free Cash FlowCA$820.3M
Industry P/E29.1
Technical Analysis
TrendBearish
RSI40.2
SupportCA$114.84
ResistanceCA$130.91
MA 20CA$123.44
MA 50CA$131.10
MA 200CA$142.83
MACDBearish
VolumeDecreasing
Fear & Greed Index72.88
Valuation
Fair ValueCA$136.06
Target PriceCA$166.73
Upside/Downside37.63%
GradeUndervalued
TypeBlend
Dividend Yield0.81%
Risk Assessment
Beta0.76
Volatility46.17%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.