Latest news with #Stantec
Yahoo
2 days ago
- Business
- Yahoo
Here's Why We Think Stantec (TSE:STN) Is Well Worth Watching
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. In contrast to all that, many investors prefer to focus on companies like Stantec (TSE:STN), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That makes EPS growth an attractive quality for any company. Shareholders will be happy to know that Stantec's EPS has grown 24% each year, compound, over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away satisfied. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. Stantec maintained stable EBIT margins over the last year, all while growing revenue 16% to CA$6.0b. That's a real positive. You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart. See our latest analysis for Stantec The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Stantec's future EPS 100% free. Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions. The CA$284k worth of shares that insiders sold during the last 12 months pales in comparison to the CA$2.7m they spent on acquiring shares in the company. This adds to the interest in Stantec because it suggests that those who understand the company best, are optimistic. We also note that it was the Executive VP & CFO, Vito Culmone, who made the biggest single acquisition, paying CA$486k for shares at about CA$121 each. The good news, alongside the insider buying, for Stantec bulls is that insiders (collectively) have a meaningful investment in the stock. As a matter of fact, their holding is valued at CA$47m. That shows significant buy-in, and may indicate conviction in the business strategy. Despite being just 0.3% of the company, the value of that investment is enough to show insiders have plenty riding on the venture. While insiders already own a significant amount of shares, and they have been buying more, the good news for ordinary shareholders does not stop there. The cherry on top is that the CEO, Gord Johnston is paid comparatively modestly to CEOs at similar sized companies. For companies with market capitalisations over CA$11b, like Stantec, the median CEO pay is around CA$10m. Stantec's CEO took home a total compensation package worth CA$8.6m in the year leading up to December 2023. That is actually below the median for CEO's of similarly sized companies. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of a culture of integrity, in a broader sense. For growth investors, Stantec's raw rate of earnings growth is a beacon in the night. Furthermore, company insiders have been adding to their significant stake in the company. Astute investors will want to keep this stock on watch. If you think Stantec might suit your style as an investor, you could go straight to its annual report, or you could first check our discounted cash flow (DCF) valuation for the company. Keen growth investors love to see insider activity. Thankfully, Stantec isn't the only one. You can see a a curated list of Canadian companies which have exhibited consistent growth accompanied by high insider ownership. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Yahoo
4 days ago
- Business
- Yahoo
Stantec Inc. (STN): A Bull Case Theory
We came across a bullish thesis on Stantec Inc. (STN) on Investing Intel's Substack. In this article, we will summarize the bulls' thesis on STN. Stantec Inc. (STN)'s share was trading at $101.83 as of 23rd May. STN's trailing and forward P/E were 41.89 and 26.39 respectively according to Yahoo Finance. Photo by Shane Cottle on Unsplash Stantec (NYSE: STN) has continued to benefit from a favorable macro backdrop driven by increasing infrastructure investment and demand for sustainable solutions. In Q1 2025, the company reported robust financial performance, including a 13.3% increase in net revenue and a 28.9% rise in adjusted EPS, while also achieving a record-high backlog of $7.9 billion. These results were underpinned by strong public and private sector funding, particularly in water, transportation, and climate-resilient infrastructure. Reinforcing confidence in its trajectory, Stantec reaffirmed its 2025 guidance, projecting 7% to 10% revenue growth and 16% to 19% EPS growth. The company's ongoing strategic acquisitions, notably the U.S.-based design firm Page, have bolstered its technical capabilities and geographic reach. With a growing portfolio aligned with global sustainability goals and infrastructure renewal, Stantec is well-positioned to sustain long-term growth and deliver shareholder value. Previously, we have covered Stantec Inc. (STN) in January 2025 wherein we summarized a bullish thesis by Serhio MaxDividends on Substack. The author highlighted the company's appeal as a dividend growth investment, citing 12 consecutive years of dividend increases and a low 26.36% payout ratio supporting future hikes. The article emphasized Stantec's strong Q3 2024 results, with 16% revenue growth and robust performance in the Water and Buildings segments, underpinned by a $7.3 billion backlog and global operations. The thesis positioned Stantec as a financially disciplined, diversified infrastructure leader well-suited for long-term investors seeking reliable income and growth. Since our last coverage, the stock is up 29.64% as of 27th May. Stantec Inc. (STN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held STN at the end of the first quarter which was 15 in the previous quarter. While we acknowledge the risk and potential of STN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than STN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
4 days ago
- Business
- Yahoo
Stantec Announces Private Offering of $425 Million Senior Unsecured Notes
(All financial figures are expressed in Canadian dollars) EDMONTON, Alberta, May 30, 2025 (GLOBE NEWSWIRE) -- Stantec Inc. ('Stantec') (TSX, NYSE: STN), a global leader in sustainable engineering, architecture and environmental consulting announced that it has priced a private placement offering (the "Offering") of $425 million aggregate principal amount of 4.374% senior unsecured notes due June 10, 2032 (the "Notes"). The Offering is expected to close on or about June 10, 2025 subject to customary closing conditions. Stantec intends to use the net proceeds of the Offering to repay existing indebtedness and for general corporate purposes. The Notes will be issued at par for aggregate gross proceeds of $425 million and will bear interest at a fixed rate of 4.374% per annum, payable semi-annually on June 10 and December 10 of each year, commencing on December 10, 2025. The Notes will be direct senior unsecured obligations of Stantec and will rank pari passu with all of Stantec's existing and future senior unsecured indebtedness and senior in right of payment to any future subordinated indebtedness of Stantec. The Notes have been assigned a provisional rating of BBB, with a stable trend, by DBRS Limited (Morningstar DBRS), and are being offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation. The Notes have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer and sale of the Notes in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act'), or the securities laws of any other jurisdiction, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act). This news release shall not constitute an offer to sell or the solicitation of an offer to buy, any security, nor shall there be any offer to sell or a solicitation of an offer to buy the Notes in any jurisdiction where it is unlawful to do so. Cautionary Note Regarding Forward-Looking Statements This news release contains forward-looking statements which include statements about the size and terms of the proposed Offering of Notes, the timing and completion of the Offering, the expected use of the net proceeds of the Offering and any other future events or developments described herein. Forward-looking statements also include any other statements that do not refer to historical facts. By their nature, forward-looking statements are based on assumptions and factors including, without limitation: historical trends, current and future economic and financial conditions, and expected future developments. Stantec believes such assumptions and factors are reasonably accurate at the time of preparing this news release. However, forward-looking statements are not guarantees of future performance and are subject to inherent risks and uncertainties which could cause future results to differ materially from the forward-looking statements made in this news release. Such risks and uncertainties include, but are not limited to, the disclosure contained under the heading "Risk Factors" in Stantec's management discussion and analysis for the year ended December 31, 2024 (the "MD&A") and for the three months ended March 31, 2025 (the "Q1 MD&A"), and in Stantec's other continuous disclosure filings. The MD&A and Q1 MD&A are accessible online by visiting EDGAR on the SEC website at or by visiting the CSA website at or Stantec's website, There is a specific risk that the Offering described above may be delayed, cancelled, suspended or terminated. Any forward-looking statements are made as of the date hereof and, except as may be required by law, Stantec undertakes no obligation to publicly update or revise any forward-looking statements. Forward-looking statements are provided herein for the purpose of giving information about the Offering referred to above and its expected impact. Readers are cautioned that such information may not be appropriate for other purposes. Readers should not place undue reliance on forward-looking statements made in this news release, which are expressly qualified by this cautionary statement. About Stantec Stantec empowers clients, people, and communities to rise to the world's greatest challenges at a time when the world faces more unprecedented concerns than ever before. We are a global leader in sustainable engineering, architecture, and environmental consulting. Our professionals deliver the expertise, technology, and innovation communities need to manage aging infrastructure, demographic and population changes, the energy transition, and more. Today's communities transcend geographic borders. At Stantec, community means everyone with an interest in the work that we do—from our project teams and industry colleagues to our clients and the people our work impacts. The diverse perspectives of our partners and interested parties drive us to think beyond what's previously been done on critical issues like climate change, digital transformation, and future-proofing our cities and infrastructure. We are designers, engineers, scientists, project managers, and strategic advisors. We innovate at the intersection of community, creativity, and client relationships to advance communities everywhere, so that together we can redefine what's possible. Stantec trades on the TSX and the NYSE under the symbol STN. For further information: Investor ContactJess NieukerkStantec Investor RelationsPh: (403)
Yahoo
20-05-2025
- Business
- Yahoo
Stantec Inc. (STN) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Stantec (STN)? Shares have been on the move with the stock up 16% over the past month. The stock hit a new 52-week high of $101.81 in the previous session. Stantec has gained 29.1% since the start of the year compared to the 4.8% move for the Zacks Business Services sector and the 0.1% return for the Zacks Consulting Services industry. The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 14, 2025, Stantec reported EPS of $0.81 versus consensus estimate of $0.79 while it beat the consensus revenue estimate by 4.49%. For the current fiscal year, Stantec is expected to post earnings of $3.86 per share on $4.77 billion in revenues. This represents a 19.5% change in EPS on a 11.37% change in revenues. For the next fiscal year, the company is expected to earn $4.31 per share on $5.11 billion in revenues. This represents a year-over-year change of 11.53% and 7.12%, respectively. Stantec may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level. On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style. Stantec has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B. In terms of its value breakdown, the stock currently trades at 26.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 21X. On a trailing cash flow basis, the stock currently trades at 19.2X versus its peer group's average of 18.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective. We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Stantec currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts. Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Stantec fits the bill. Thus, it seems as though Stantec shares could still be poised for more gains ahead. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stantec Inc. (STN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Stantec Inc (STN) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Net Revenue: $1.6 billion, up 13.3% year over year. Organic Growth: 5.9% overall, with notable double-digit growth in Canada. Acquisition Growth: 3.2%. Adjusted EBITDA: Increased by over 19%, with a margin of 16.2%. Adjusted EPS: Growth of 29% compared to Q1 2024, reaching $1.16. Gross Revenue: $1.9 billion, up almost 12% year over year. Project Margins: 54.3%, a 10 basis point increase over last year. Operating Cash Flow: Increased almost 136% year over year, from $43 million to $101 million. Net Debt to Adjusted EBITDA Ratio: 1.1 times as of March 31. Backlog: Reached a record $7.9 billion, with 7.5% organic growth. US Net Revenue Growth: 9.7%, with 2.4% organic growth. Canada Net Revenue Growth: 15%, with 12.2% organic growth. Global Business Net Revenue Growth: 20.3%, with 7.5% organic growth. Warning! GuruFocus has detected 2 Warning Signs with MTTRF. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Stantec Inc (NYSE:STN) reported a strong start to 2025 with a 13.3% year-over-year increase in net revenue, reaching $1.6 billion. The company achieved a 19% growth in adjusted EBITDA, with an enhanced margin of 16.2%. Stantec Inc (NYSE:STN) announced two strategic acquisitions, including Page, which will make it the second-largest architectural firm in North America. The company's backlog reached a record $7.9 billion, indicating strong demand and future work. Stantec Inc (NYSE:STN) maintained a positive outlook for 2025, expecting net revenue growth of 7% to 10% and adjusted EPS growth of 16% to 19%. Organic growth in the US was slightly below expectations at 2.4%, attributed to project cycle timing and a tough comparison from the previous year. Despite strong performance, the company did not raise its guidance for 2025, citing the need to close acquisitions and assess Q2 results. There is some uncertainty in the US government business, with potential impacts on procurement cycles and contract renewals. The integration of ZETCON in Germany is progressing slower than usual due to language and accounting differences. The company faces heightened market uncertainty due to tariffs, policy shifts, and regulatory changes, which could impact future performance. Q: In terms of organic growth for the US, you achieved 2.4%, which is slightly below the consolidated level. Is this due to tough comparisons from last year or are there current uncertainties in the US market? A: Gordon Johnston, President and CEO, explained that the lower growth is partly due to a tough comparison from last year when they completed a significant water project. However, they expect mid to high single-digit organic growth for the year, supported by a strong backlog. Q: Despite adding two acquisitions and nearly 1,600 people, why hasn't the guidance for 2025 been raised? A: Vito Culmone, EVP and CFO, stated that the base business is performing well, and the guidance remains unchanged due to the timing of acquisition closures. They plan to reassess the guidance after Q2. Q: Can you provide insights into the US government business and any impacts from current uncertainties? A: Gordon Johnston noted that there has been little impact from uncertainties. While there was a temporary slowdown in procurement cycles, the situation has normalized, and they remain positive about ongoing projects and future opportunities. Q: How is the integration of ZETCON progressing, and does it align with your strategy for growth in Germany? A: Gordon Johnston mentioned that ZETCON is performing better than expected, and they are using it as a platform for further growth in Germany. The integration is progressing slowly due to language and accounting differences, but it aligns with their strategic goals. Q: Have macro uncertainties affected M&A opportunities or regional interests? A: Gordon Johnston stated that they maintain a long-term perspective on M&A, focusing on strategic and cultural fit. Vito Culmone added that seller motivations remain unchanged, with technology investments and succession planning driving market dynamics. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
