# Stantec (STN.US)

Canonical: https://gigainvestors.com/s/STN

Analysis as of: 2026-10-16T07:32:08.185Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: CAD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $69.19 per share; close as of 2026-10-15.

Estimated value: low $45.94 per share, central $52.09 per share, high $60.27 per share. Buy at or below the central value $52.09 per share. Valuation as of 2026-10-16T07:32:08.185Z; scenarios are not confidence intervals.

Expected annual return: 8.2% at the stated quote. About 8.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.04×

- FY2018: 0.06×

- FY2019: 0.07×

- FY2020: 0.07×

- FY2021: 0.07×

- FY2022: 0.07×

- FY2023: 0.08×

- FY2024: 0.08×

- FY2025: 0.09×

### moat: pass

- ROIC, median of available years: 17.5%

- ROIC, second-lowest year: 15.4%

- Typical minus recent gross margin: 1.7 pp

- Typical gross margin (annual median): 40.7%

- Recent gross margin (lower of latest and 3-year median): 39.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 10.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.5%

- FY2017: 17.9%

- FY2018: 19.2%

- FY2019: 12.0%

- FY2020: 16.0%

- FY2021: 15.4%

- FY2022: 17.0%

- FY2023: 22.5%

- FY2024: 22.7%

- FY2025: 21.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.66×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD 2.7B

- Net income, five-year total: CAD 1.6B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.0 pp

- Working capital / revenue, change between three-year averages: 0.0 pp

- Working capital / revenue, final three-year average: 22.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.85×

- FY2022: 1.84×

- FY2023: 1.58×

- FY2024: 1.61×

- FY2025: 1.58×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 17.9% vs 22.5%

- Per-share earnings: 1.22 to 3.17 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.9%

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: CAD 11B

- Cumulative retained earnings: CAD 828M

- Diluted shares, 10-year annual growth: 1.9%

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.7%

- Per-share value change: CAD 1.95

- Per-share value, starting three-year median: CAD 1.22

- Per-share value, ending three-year median: CAD 3.17

- Buybacks concentrated in cheaper years (correlation): -0.07

- Average buyback yield: 0.9%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: CAD 3.5B

- Cumulative net income, 10 years: CAD 2.2B

- ROIC, first three-year median: 17.9%

- ROIC, last three-year median: 22.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CAD 1.22

- FY2017: CAD 0.85

- FY2018: CAD 0.42

- FY2019: CAD 1.34

- FY2020: CAD 1.20

- FY2021: CAD 1.80

- FY2022: CAD 2.22

- FY2023: CAD 2.85

- FY2024: CAD 3.17

- FY2025: CAD 4.20

### accounting: pass

- Sloan accruals: -4.8%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.80×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.18×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.6%

- FY2017: -4.3%

- FY2018: -3.1%

- FY2019: -6.6%

- FY2020: -10.7%

- FY2021: -3.8%

- FY2022: -1.0%

- FY2023: -4.0%

- FY2024: -3.5%

- FY2025: -4.8%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 38% since Oct 2025 · sales +8.5%

Story as of 2026-10-16T09:59:38.131Z; price observation 2026-10-15.

Price needs cash profits to grow 4.5% a year for ten years

- 2025-07-16: Stantec's Backlog Surge Points to Revenue Acceleration Ahead ([finance.yahoo.com](https://finance.yahoo.com/news/stantecs-backlog-surge-points-revenue-165100406.html))

- 2025-08-13: Stantec Down 4.8% After Hours as Second-Quarter Earnings, Revenue Rise; Full-year Guidance Raised ([finance.yahoo.com](https://finance.yahoo.com/news/stantec-down-4-8-hours-213234342.html))

- 2026-04-21: Stantec releases 19th annual Sustainability Report, highlighting 68% (C$5.5 billion) in sustainability-driven revenue ([finance.yahoo.com](https://finance.yahoo.com/sectors/energy/articles/stantec-releases-19th-annual-sustainability-104500773.html))

### Sales · FY2024–2025

sales +8.5%; source https://www.sec.gov/Archives/edgar/data/1131383/000113138326000007/stn-20251231.htm; observed 2026-02-25.

- FY2016: CAD 4.3B 

- FY2017: CAD 5.1B 

- FY2018: CAD 4.3B 

- FY2019: CAD 3.7B 

- FY2020: CAD 3.7B 

- FY2021: CAD 4.6B 

- FY2022: CAD 5.7B 

- FY2023: CAD 6.5B 

- FY2024: CAD 7.5B 

- FY2025: CAD 8.1B 

### Gross margin · FY2025

gross margin 39%; source https://www.sec.gov/Archives/edgar/data/1131383/000113138326000007/stn-20251231.htm; observed 2026-02-25.

- FY2016: 39.0% 

- FY2017: 35.6% 

- FY2018: 42.4% 

- FY2019: 36.6% 

- FY2020: 36.0% 

- FY2021: 42.9% 

- FY2022: 42.6% 

- FY2023: 42.4% 

- FY2024: 42.6% 

- FY2025: 39.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are CAD 8.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1131383/000113138326000007/stn-20251231.htm (filed 2026-02-25); FY2025: revenue 8137563014; grossProfit 3174710710; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); STN.US: Stantec Inc. provides professional services in the areas of infrastructure and facilities to private and public sectors in Canada, the United States, and internationally. The company offers evaluation, planning, and designing infrastructure solutions; various permitting, conservation, ecosystem restoration, health sciences, and environmental, social, and governance strategy services; solutions for sustainable water resources, planning, management, and infrastructure; integrated architecture, engineering, interior design, and planning solutions for buildings; and energy and resources solutions. It also provides consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. In addition, the company provides fire engineering, electrical, mechanical, hydraulics, buildings sustainability, and civil expertise services; services in mission critical, academic, civic, cultural, aviation, science and technology, commercial, industrial, and workplace; and delivers services to local authorities, government departments, private clients, and utility companies. Further, the company is involved in the planning, design, construction administration, commissioning, maintenance, decommissioning, and remediation services. Additionally, it offers infrastructure planning, inspection, project management, and construction management services; transportation, buildings, and environmental services; and energy and sustainability, fire safety, civil and structural, and mechanical, electrical and plumbing (MEP) engineering, transport, environmental, and geotechnical services. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada.

### Why customers stay

Margins ranged from 39% to 42.6% during 2023–25; it earns 17.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 42.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 42.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1131383/000113138326000007/stn-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 39%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2016,0.16529929618485295],[2017,0.17946417820590005],[2018,0.19169190528810826],[2019,0.12048437710471686],[2020,0.15977493961275202],[2021,0.15396025328594376],[2022,0.17002946762734714],[2023,0.22512286837734896],[2024,0.22722749905977963],[2025,0.21124398192345292]]; median 0.17474682291662358. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 43% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1131383/000113138326000007/stn-20251231.htm (filed 2026-02-25); Gross margin observations: [[2021,0.42896783779059605],[2022,0.42579088282956384],[2023,0.42359096240508676]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2016: growth capex 0; upkeep 65825000; owner earnings 191556000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2017: growth capex 0; upkeep 66800000; owner earnings 165000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2018: growth capex 0; upkeep 134200000; owner earnings 28300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2019: growth capex 0; upkeep 60300000; owner earnings 331832371. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2020: growth capex 0; upkeep 34200000; owner earnings 328901412. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2021: growth capex 0; upkeep 50600000; owner earnings 371900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2022: growth capex 0; upkeep 74900000; owner earnings 455600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 0; upkeep 100600000; owner earnings 499500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: growth capex 0; upkeep 99000000; owner earnings 581100000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1131383/000113138326000007/stn-20251231.htm (filed 2026-02-25); FY2025: growth capex 0; upkeep 71841406; owner earnings 758581301. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,46112000],[2017,55500000],[2018,61300000],[2019,64000000],[2020,68000000],[2021,72300000],[2022,78200000],[2023,84900000],[2024,94000000],[2025,100917691]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); STN.US SharesStats.PercentInsiders = 0.09 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.5% yearly over ten years; actual growth was 12.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Ten-year compound average after fade. Initial solved rate 0.05196225159356038. Price 69.19; FX 0.7047; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.103009704519273 → FY2025 6.650313712568654. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $22.30 per share

- 2016-11: $26.65 per share

- 2016-12: $25.25 per share

- 2017-01: $26.76 per share

- 2017-02: $25.85 per share

- 2017-03: $25.90 per share

- 2017-04: $25.60 per share

- 2017-05: $23.05 per share

- 2017-06: $25.10 per share

- 2017-07: $25.50 per share

- 2017-08: $27.80 per share

- 2017-09: $27.75 per share

- 2017-10: $28.60 per share

- 2017-11: $27.10 per share

- 2017-12: $27.95 per share

- 2018-01: $29.05 per share

- 2018-02: $25.15 per share

- 2018-03: $24.65 per share

- 2018-04: $25.40 per share

- 2018-05: $25.20 per share

- 2018-06: $25.65 per share

- 2018-07: $26.15 per share

- 2018-08: $25.20 per share

- 2018-09: $24.85 per share

- 2018-10: $26.02 per share

- 2018-11: $23.83 per share

- 2018-12: $21.86 per share

- 2019-01: $23.80 per share

- 2019-02: $24.60 per share

- 2019-03: $23.64 per share

- 2019-04: $25.08 per share

- 2019-05: $23.19 per share

- 2019-06: $23.98 per share

- 2019-07: $23.81 per share

- 2019-08: $21.74 per share

- 2019-09: $22.17 per share

- 2019-10: $21.39 per share

- 2019-11: $26.63 per share

- 2019-12: $28.30 per share

- 2020-01: $29.77 per share

- 2020-02: $29.89 per share

- 2020-03: $25.56 per share

- 2020-04: $29.53 per share

- 2020-05: $30.07 per share

- 2020-06: $30.85 per share

- 2020-07: $32.19 per share

- 2020-08: $32.51 per share

- 2020-09: $30.34 per share

- 2020-10: $28.71 per share

- 2020-11: $30.13 per share

- 2020-12: $32.47 per share

- 2021-01: $35.50 per share

- 2021-02: $39.35 per share

- 2021-03: $42.78 per share

- 2021-04: $46.83 per share

- 2021-05: $44.78 per share

- 2021-06: $44.62 per share

- 2021-07: $46.49 per share

- 2021-08: $48.31 per share

- 2021-09: $46.94 per share

- 2021-10: $55.30 per share

- 2021-11: $54.06 per share

- 2021-12: $56.25 per share

- 2022-01: $53.05 per share

- 2022-02: $49.68 per share

- 2022-03: $50.14 per share

- 2022-04: $45.89 per share

- 2022-05: $45.40 per share

- 2022-06: $43.79 per share

- 2022-07: $49.40 per share

- 2022-08: $47.44 per share

- 2022-09: $43.83 per share

- 2022-10: $48.92 per share

- 2022-11: $49.47 per share

- 2022-12: $47.94 per share

- 2023-01: $52.16 per share

- 2023-02: $58.02 per share

- 2023-03: $58.41 per share

- 2023-04: $60.05 per share

- 2023-05: $57.83 per share

- 2023-06: $65.22 per share

- 2023-07: $67.70 per share

- 2023-08: $66.83 per share

- 2023-09: $64.87 per share

- 2023-10: $61.17 per share

- 2023-11: $74.17 per share

- 2023-12: $80.19 per share

- 2024-01: $80.40 per share

- 2024-02: $83.35 per share

- 2024-03: $83.04 per share

- 2024-04: $79.60 per share

- 2024-05: $80.68 per share

- 2024-06: $83.55 per share

- 2024-07: $87.99 per share

- 2024-08: $81.99 per share

- 2024-09: $80.41 per share

- 2024-10: $81.16 per share

- 2024-11: $87.02 per share

- 2024-12: $78.45 per share

- 2025-01: $77.43 per share

- 2025-02: $85.28 per share

- 2025-03: $82.84 per share

- 2025-04: $87.80 per share

- 2025-05: $102.94 per share

- 2025-06: $108.68 per share

- 2025-07: $109.36 per share

- 2025-08: $108.67 per share

- 2025-09: $107.80 per share

- 2025-10: $110.88 per share

- 2025-11: $96.56 per share

- 2025-12: $94.36 per share

- 2026-01: $99.08 per share

- 2026-02: $92.77 per share

- 2026-03: $86.40 per share

- 2026-04: $91.30 per share

- 2026-05: $75.55 per share

- 2026-06: $68.91 per share

- 2026-07: $70.49 per share

- 2026-08: $73.00 per share

- 2026-09: $67.36 per share

- 2026-10: $66.86 per share

## Annual estimated value (USD per share)

- FY2016: low $26.88 per share, central $37.19 per share, high $43.48 per share

- FY2017: low $28.13 per share, central $38.48 per share, high $44.97 per share

- FY2018: low $13.53 per share, central $15.31 per share, high $17.68 per share

- FY2019: low $12.39 per share, central $13.97 per share, high $16.07 per share

- FY2020: low $12.71 per share, central $14.28 per share, high $16.36 per share

- FY2021: low $29.86 per share, central $38.72 per share, high $45.18 per share

- FY2022: low $36.51 per share, central $47.35 per share, high $55.33 per share

- FY2023: low $37.98 per share, central $43.00 per share, high $49.70 per share

- FY2024: low $41.29 per share, central $46.89 per share, high $54.35 per share

- FY2025: low $45.55 per share, central $51.63 per share, high $59.72 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/1131383/000113138326000007/stn-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.