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AGING Analysis Report
Aug 2, 2026
21 days ago · 100% complete
NOT DEPENDABLE This report predates a filing — its financial basis has been replaced.
Report generated: Aug 2, 2026 · Filing on record since: Aug 2, 2026
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Stantec Inc. (STN) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-23): Designation Watch · Gem Score +0 (−100…+100 Quality+Value blend) · Quality 65 · Value -53 · Sentiment 24 (timing only, not weighted) · Composite fair value $55.27 vs $70.49 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Stantec Inc.

STN NYSE
Industrials · Engineering & Construction
Edmonton, AB T5J 0K4, Canada stantec.com Updated Aug 2, 1:15pm
Price
$70.49
Market Cap
$8.0B
Employees
34,000
Beta
0.72
Avg Volume
506,587
Last Dividend
$0.67
CEO
Mr. Gordon Allan Johnston P.Eng.

Stantec Inc. is a globally recognized provider of professional services in the design and consulting industry. With a comprehensive portfolio that spans across multiple sectors, its primary function is to offer engineering, architectural, environmental, and project management services. Stantec specializes in delivering sustainable projects, focusing on infrastructure, community development, and natural resource management. The company's work impacts various industries including water, urban development, energy, and transportation, showcasing its commitment to innovative and practical solutions. Headquartered in Edmonton, Canada, and operating in over 400 locations worldwide, Stantec plays a crucial role in shaping and enhancing public and private environments. It is esteemed for its contribution to infrastructure projects that prioritize sustainability and community benefit, reinforcing its significance in the market as a leader in integrating design expertise with socio-environmental needs.

Runs with full report Generated: Aug 2, 2026 1:21pm
Price Overview
Price at report time
$70.49
as of Aug 2, 1:15pm (21d ago)
Change · Aug 2
+1.05 (+1.51%)
Day Range
$69.00 – $70.95
52-Week Range
$66.26 – $114.52
50-Day MA
$71.08
200-Day MA
$89.28
Volume
441,700.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 21d).
Share Structure
Outstanding 114,066,995.00
Float 113,756,733.00
Free Float 99.7%
High free float — 99.7% of shares trade freely, ~0.3% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 2, 2026 1:29pm (21d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 2, 2026 1:15pm (21d ago)
Why there are no quarterly figures for Stantec Inc.

Stantec Inc. is a foreign private issuer — it reports to the U.S. SEC once a year (on Form 20-F or 40-F) rather than filing the quarterly statements (10-Q) that U.S.-domiciled companies must submit. Our financial statements are read directly from SEC filings, so for this company only annual figures exist at the source.

This is a property of how the company files, not missing or broken data — its filing history shows 10 annual reports, the latest filed 2026-02-25, and no quarterly filings . The company may still publish quarterly results on its own investor-relations site.

Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 2, 2026 1:19pm
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
23.53
Stock Price: $70.49
EPS (Diluted): 3.00
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
3.48
Stock Price: $70.49
Total Equity: $2.31B
Shares: 114,066,995
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
Market Cap: $8.04B
Total Debt: $1.30B
Cash: $283.94M
EBITDA: N/A
EBITDA not available
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$9.1B
Market Cap: $8.04B
Total Debt: $1.30B
Cash: $283.94M
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
Gross Profit: N/A
Revenue: $5.81B
Missing from API: Gross Profit
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
Operating Income: N/A
Revenue: $5.81B
Missing from API: Operating Income
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
5.9%
Net Income: $341.93M
Revenue: $5.81B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
14.8%
Net Income: $341.93M
Total Equity: $2.31B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
Operating Income: N/A
Tax Rate: 23.9%
Equity: $2.31B
Total Debt: $1.30B
Cash: $283.94M
Missing from API: Operating Income
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
1.23
Current Assets: $1.99B
Current Liabilities: $1.62B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.56
Short-Term Debt: $207.55M
Long-Term Debt: $1.09B
Total Debt: $1.30B
Total Equity: $2.31B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$50.92
Revenue: $5.81B
Shares: 114,066,995
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$20.26
Total Equity: $2.31B
Shares: 114,066,995
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$5.40
Operating CF: $615.45M
CapEx: $0.00
Shares: 114,066,995
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
0.9%
Last Dividend: $0.67
Stock Price: $70.49
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
21.1%
Dividends Paid: -$72.04M
Net Income: $341.93M
Industry Benchmarks
Last run: Aug 2, 2026 1:19pm
Compares STN against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 2, 2026 1:15pm (21d ago)
Metric 2021 2022 2023 2024 2025
Revenue $3.3B $4.0B $4.6B $5.3B $5.8B
Cost of Revenue $1.2B $1.5B $1.7B
Gross Profit $1.4B $1.7B $2.0B
Operating Expenses
Operating Income
Net Income $143.1M $176.2M $236.2M $257.8M $341.9M
EBITDA
EPS $1.28 $1.59 $2.13 $2.26 $3.00
EPS (Diluted) $1.28 $1.58 $2.13 $2.26 $3.00
Balance Sheet (Annual)
Last updated: Aug 2, 2026 1:15pm (21d ago)
Metric 2022 2023 2023 2024 2025
Cash & Equivalents $105.8M $105.8M $105.8M $163.0M $283.9M
Total Current Assets $1.4B $1.4B $1.4B $1.8B $2.0B
Total Assets $4.0B $3.8B $3.8B $5.0B $5.7B
Current Liabilities $1.0B $1.0B $1.0B $1.4B $1.6B
Long-Term Debt $844.2M $825.3M $825.3M $862.0M $1.1B
Total Liabilities $2.4B $2.4B $2.4B $2.9B $3.4B
Total Equity $1.6B $1.4B $1.4B $2.1B $2.3B
Retained Earnings $823.7M
Cash Flow (Annual)
Last updated: Aug 2, 2026 1:15pm (21d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $283.2M $217.0M $388.5M $430.2M $615.5M
Capital Expenditure -$32.7M -$48.9M
Free Cash Flow $250.5M $168.2M
Acquisitions (net) -$501.1M -$35.9M -$53.9M -$395.8M -$323.8M
Net Debt Issued / (Repaid)
Dividends Paid -$51.6M -$55.8M -$60.6M -$67.0M -$72.0M
Stock Buybacks
Net Change in Cash -$70.0M -$27.4M $145.9M -$88.7M $121.0M
Growth Trends (YoY %)
Last updated: Aug 2, 2026 1:15pm (21d ago)
Metric 2022 2023 2024 2025
Revenue Growth +24.0% +14.1% +15.7% +8.6%
Gross Profit Growth +23.1% +13.5%
Operating Income Growth
Net Income Growth +23.1% +34.1% +9.1% +32.6%
EBITDA Growth
Dividend History (Last 20)
Last updated: Aug 2, 2026 1:15pm (21d ago)
Date Dividend Declaration Record Payment
2026-06-30 $0.17
2026-03-31 $0.18
2025-06-30 $0.16
2025-03-28 $0.16
2024-12-31 $0.15
2024-09-27 $0.16
2024-06-28 $0.15
2024-03-27 $0.16
2023-12-28 $0.15
2023-09-28 $0.14
2023-06-29 $0.15
2023-03-30 $0.14
2022-12-29 $0.13
2022-09-28 $0.13
2022-06-29 $0.14
2022-03-30 $0.14
2021-12-30 $0.13
2021-09-28 $0.13
2021-06-29 $0.13
2021-03-30 $0.13
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable not yet run 12 computed · 6 not applicable · 6 not yet run
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for STN — it's generated by the pipeline (market-narrative step).
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-02 13:28:23
Verdict Fairly valued near $70 with modest upside — fair value $72-78 if margins hold, $60-65 if cycle rolls; add on any pullback below $65, trim above $82.

Starting from the raw numbers: revenue has compounded from $3.26B (2021) to $5.81B (2025), a 15.5% CAGR — the 12.1% figure in the momentum block understates it slightly. Net income went from $143M to $342M, a 24% CAGR, so earnings growth is genuinely outrunning the top line and net margin has expanded from 4.4% to 5.9%. Operating cash flow of $615M against an $8.04B market cap is a ~7.7% OCF yield, and with capex for an asset-light consultancy typically running $50-80M, FCF yield is probably 6.5-7%. Debt/equity of 0.56 and $1.30B total debt against $615M OCF is unremarkable — roughly 2x OCF, easily serviced. ROE of 14.8% is respectable but not exceptional for a services firm using modest leverage. This is a clean, cash-generative compounder growing double-digits.

On valuation: 23.5x trailing P/E and 1.38x sales for a business growing earnings 20%+ isn't obviously expensive — PEG is roughly 1.1x. EV/revenue of 1.56x and EV/OCF of ~13.6x are reasonable for engineering services; peer TTEK trades meaningfully richer. The synthesis verdict of $62.81 fair value (implying 11% downside) looks conservative to me — it appears to weight mean-reversion in margins and growth too heavily. If 2026 delivers even 8% revenue growth and flat margins, that's ~$370M NI, and 22x on that is $80+. The bear case for margin compression is real (labor costs in consulting are the whole cost structure), but there's no evidence of it in the 2025 print — margins expanded. I think fair value sits closer to $72-78, meaning the stock is roughly fairly priced, not overvalued.

Where I'd push back on the prior models: the "Market Forces" flag about "debt stress" and "government dependency" reads as boilerplate risk-flagging — $1.3B of debt against $615M OCF is not stress, and government infrastructure exposure has been a tailwind, not a liability, through the IIJA cycle. The synthesis calling this "vulnerable to disappointment" because "market prices in more growth than projected" is circular if the projection itself is too conservative given a 15.5% revenue CAGR and 32.6% recent earnings YoY. The narrative layer gets it right: this is an anchored, steady-compounder story with no meme premium — which means the downside from narrative unwind is limited. The classification as "mature_earner" is defensible but slightly misses that Stantec is still meaningfully growing; it's not a GE-style ex-growth industrial.

Contrarian case worth taking seriously: engineering consultancies are cyclical on backlog conversion, and the 2021-2025 window coincides with a historic infrastructure spending surge (IIJA in the US, similar programs in Canada/UK/Australia). If that fades in 2026-2027 and a Trump administration reallocates or defers spending, book-to-bill could roll over quickly. Margin expansion in services almost always comes from utilization, and utilization mean-reverts. The 32.6% earnings YoY is likely peak-cycle, not run-rate. If normalized earnings are closer to $280-300M, then 23.5x becomes 27-28x on normalized, and fair value drops to $58-62 — which is exactly where the synthesis lands. That's the honest bear case, and it's not crazy. Data gaps also bother me: no quarterly trajectory provided, no FCF/capex breakdown, no backlog figure — for an engineering firm, backlog is the single most important leading indicator and it's absent here. The "insufficient_data" tag on quarterly trend is a real limitation.

Net: I partially agree with the synthesis but think it's too bearish on point estimate. The stock isn't a screaming buy at $70 — the easy money from margin expansion has been made and infrastructure spending is likely mid-to-late cycle — but calling it 8% overvalued when it's growing earnings 20%+ on a durable services model with a 6.5%+ FCF yield feels like penalty for being boring. I'd call it fairly valued with a slight lean to undervalued if you believe backlog holds through 2026. A starter position at $70 makes sense; I'd add aggressively below $62 where the synthesis fair value provides a floor with margin of safety. Above $80, the risk/reward flips clearly negative absent a genuine growth re-acceleration.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-02 13:28:38
Verdict Modestly undervalued at $70.49 — not cheap, but the step-up in earnings power and cash generation supports fair value in the mid-to-high $70s rather than the low-$60s.

What stands out is that Stantec has quietly become a better business faster than the market stereotype of “steady engineering consultant” suggests. Revenue has gone from $3.26B in 2021 to $5.81B in 2025, a 78% increase in four years, while net income rose from $143.1M to $341.9M, up 139%. That is not just end-market lift; it implies real operating quality improvement even though operating margin data is missing. The cleanest evidence is net margin expanding from 4.4% in 2021 to 5.9% in 2025, with 2025 earnings up 32.6% on only 8.6% revenue growth. For a people-based professional services firm, that kind of earnings elasticity usually means better utilization, pricing, mix, or acquisition integration rather than accounting noise. At $70.49, the stock trades at 23.5x earnings, 1.38x sales, and 3.48x book. For a business compounding revenue at 12% and earnings at 20% with a 14.8% ROE and solid cash conversion, that does not look obviously expensive.

The balance sheet also looks more supportive than the cautionary framing implies. Debt of $1.30B against $283.9M of cash leaves roughly $1.0B of net debt, which is manageable for a company generating $615.5M of operating cash flow and carrying a debt-to-equity ratio of 0.56. This is not a capital-intensive contractor with large equipment needs and lumpy project risk; it is an asset-light design and consulting platform, so cash generation matters more than raw leverage headlines. On simple math, operating cash flow is about 1.8x net income in 2025, which is a healthy sign for earnings quality. If I assume even moderate capex needs, free cash flow should still be comfortably above accounting earnings. That matters because a business at roughly $8.0B market cap producing this level of cash can delever, keep doing bolt-on M&A, and support dividend growth without needing heroic assumptions.

I think the “fully priced” call is too conservative because it anchors on the current multiple without giving enough credit to the quality and durability of the earnings progression. A 23.5x P/E for a cyclical contractor would be rich; for a recurring-fee infrastructure and environmental consultancy with broad secular exposure, it is much closer to reasonable. The market is paying about 1.56x EV/revenue for a firm whose gross profit in 2023 was already $1.96B on $4.62B of sales, suggesting a structurally attractive service mix. The key question is not whether Stantec deserves a premium to generic industrials; it does. The question is whether it deserves to trade more like a mature no-growth outsourcer or a steady compounder with modest multiple resilience. Based on the 2021-2025 trajectory, I lean to the latter. I would not call it a screaming bargain, but I do think fair value is above the low-$60s implied by the prior synthesis; something in the mid-to-high $70s is easier to justify if current margin gains hold.

The best case against this view is straightforward: this may simply be near-peak conditions dressed up as structural improvement. Revenue growth has already decelerated to 8.6%, and engineering consultancies can look deceptively stable right before public funding, private development, or energy capex cools. Net margin at 5.9% is still not high, so a modest utilization drop or wage pressure could hit earnings hard. The current ratio of 1.23 is adequate, not fortress-like, and acquisitive roll-ups can flatter multi-year growth while masking the organic trajectory. On that framing, 23.5x earnings and 1.38x sales are not cheap for a company still exposed to labor inflation, government budgets, and project timing. I take those risks seriously, but I weigh them differently because the company has shown four consecutive years of rising scale and profitability, while leverage remains controlled and cash flow robust enough to absorb a softer patch.

What would change my mind is evidence that 2025 was the high-water mark rather than a step-up in base earnings power. If revenue growth slips below mid-single digits while net income falls back toward the 2024 level of $257.8M, then today’s multiple is too high and the shares probably belong closer to $60-$65. Likewise, if operating cash flow stops tracking earnings and drops materially below roughly $500M without an obvious working-capital explanation, the quality case weakens. On the other hand, if Stantec can convert the $5.81B revenue base into another year of double-digit EPS growth with net margin sustained around 6% and debt held near current levels, the stock can support $75-$80 without stretching.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-02 13:29:18
Verdict Fairly valued around $70; quality compounder fully reflecting mid-teens earnings power, limited margin of safety vs ~$65 model value

Stantec’s five-year arc is a clean operating-leverage story rather than a pure top-line rocket. Revenue compounded from $3.26B in 2021 to $5.81B in 2025 at a 12.1% CAGR, while net income nearly doubled-plus from $143M to $342M (20.3% earnings CAGR), lifting net margin from roughly 4.4% to 5.9%. The 2025 print is the standout: 8.6% revenue growth produced a 32.6% earnings jump and $615.5M of operating cash flow—nearly 1.8× net income—on an asset-light consulting model. That cash conversion, a 14.8% ROE, a conservative 21% payout, and only $1.30B of debt against $2.31B equity (D/E 0.56) paint a mature earner that is still expanding margins and throwing off cash. At $70.49 the stock trades 23.5× trailing earnings, 1.38× sales and 3.5× book; with a sub-1% dividend yield the market is paying a full but not egregious multiple for mid-teens historical growth and infrastructure/water/net-zero exposure. The pre-flight note that shares sit 38% off highs is consistent with a name that has already absorbed cyclical skepticism while still delivering double-digit earnings growth.

Where the numbers and the models diverge is sustainability of the latest margin step-up. Revenue growth has decelerated to 8.6% while earnings accelerated, implying the bulk of the 2025 beat came from mix, utilization or cost discipline rather than volume. If that 5.9% net margin is the new run-rate, forward earnings power supports something closer to a low-20s multiple and the $70 handle looks reasonable; if it partially mean-reverts toward the 4.8–5.1% zone of 2023–24, the earnings CAGR compresses toward high-single-digits and 23.5× becomes rich. Balance-sheet liquidity is adequate but not fortress-like (current ratio 1.23, net debt roughly $1B), so any prolonged slowdown in public-sector awards would be felt. Secondary signals flagging macro headwinds and below-sector benchmarks reinforce that Stantec is executing inside a less forgiving tape than the multi-year infrastructure boom that powered the earlier CAGR.

The strongest contrary case is the valuation synthesis itself: composite fair value near $63–65 implies the stock is already 8% overvalued, methods are mixed, and the market is pricing more growth than the models project. A smart skeptic would also cite the mature-earner archetype, government-spending dependency, labor-cost pressure endemic to professional services, and the absence of any cult or transformative narrative that could expand the multiple. Those points are real; I simply weigh the $615M operating-cash generation, still-positive 12% revenue CAGR trajectory, and sub-0.6 D/E more heavily than a static DCF that appears to under-credit recent free-cash-flow momentum (FCF CAGR flagged at 25.9%). The premium to the composite is modest and is backed by visible cash rather than story.

I would flip to a clear undervalued call on two consecutive quarters of revenue re-acceleration above 10% with margins holding ≥5.5%, or a sustained FCF print that puts the free-cash yield comfortably above 6% at the current price. Conversely, a drop in net margin back below 5% or a material slowdown in North American infrastructure bookings would confirm the models’ caution and push me to overvalued.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 6.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 5.0
fairly valued · conviction 3/5 · Δ -1.0 vs panel · self: 6.0
GPT gpt-5.4 8.0
undervalued · conviction 3/5 · Δ +2.0 vs panel · self: 7.0
Grok grok-4.5 5.0
fairly valued · conviction 3/5 · Δ -1.0 vs panel · self: 5.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-02 22:04:11
Delvantic - Cairn AI
Quality - wait for a dip 7/10
Stantec is a genuinely high-quality compounder (quality +65) trading 8-11% above deserved value (-53), so this is a wait-for-a-dip name, not a buy here.
The cruxEntry price - the business is real and the tape is a mild tailwind, but at $70 vs a $63-65 deserved value there is no margin of safety; the whole trade is whether I get a shot in the high $50s.
Forensic checks Derived mechanically from STN's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionStable Share Count
Earnings QualityHigh Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+65
Strong
edge √Σ 128 · risk √Σ 51 · conf 8/10

Stantec has grown revenue from $3.26B (2021) to $5.81B (2025), a ~15% CAGR, while net income roughly 2.4x'd from $143M to $342M and FCF nearly 2.5x'd from $250M to $615M. OCF/NI of 1.66x and accruals of -3.4% of assets indicate reported earnings are backed by cash, and there are no mechanical earnings-quality flags. Diluted share count has crept only from 111.6M to 114.1M (0.5% CAGR) with SBC at just 0.5% of revenue and no buybacks - not returning capital, but not eroding per-share value either. The balance-sheet caveat is real: net debt of roughly $1.0B against only $284M of liquid cash, and an Altman Z of 2.54 sits in the grey zone. But with $615M of annual FCF, that leverage is comfortably serviceable - it is a constraint, not a survival question. Classification as a mature earner fits: this looks like a disciplined professional-services roll-up in engineering consulting, where cash conversion, backlog, and human capital tend to be the moat, and Stantec's numbers are consistent with that pattern being intact and improving.

Strengths 4
m75
FCF nearly doubled in two years
Free cash flow expanded from $388M (2023) to $615M (2025), outpacing revenue growth and signaling improving operating leverage and working-capital discipline.
m65
Clean earnings quality
OCF/NI of 1.66x and accruals of -3.4% of assets - cash comfortably exceeds reported profit, a hallmark of conservative accounting.
m60
Negligible dilution
Diluted shares up just 2.5M over four years (0.5% CAGR) with SBC at 0.5% of revenue - per-share value is protected.
m55
Consistent top-line compounding
Revenue grew every year from $3.26B to $5.81B (~15% CAGR), and net income growth (24% CAGR) outpaces revenue, suggesting genuine operating leverage.
Concerns 2
m45
Net debt of ~$1.0B
Liquid cash of $284M against $1.29B of debt implies net debt roughly 1.6x annual FCF - manageable but not a cushion; Altman Z of 2.54 sits in grey.
m25
Margin fields show zeros in later years
Reported GM% and OpM% show 0 for 2024-25, likely a data-mapping artifact given net income and FCF both rose sharply; cannot verify margin trajectory directly from the provided table.
This is a quietly high-quality business. Engineering consulting is a good model - asset-light, backlog-driven, sticky client relationships - and Stantec is executing well: revenue compounding mid-teens, FCF up 2.5x in four years, earnings backed by cash, and share count essentially flat. The only real blemish is that management funds growth partly with debt rather than running a fortress balance sheet, and the acquisitive nature of the business means I can't verify moat depth from these numbers alone. I would call this Strong, comfortably above the 75 anchor, with the ceiling capped by leverage and the inherent limits of a professional-services roll-up.
Verify before trusting this (6)
  • True gross and operating margin trajectory for 2024-25 (data table shows 0, likely a mapping error)
  • Debt maturity schedule and covenant headroom on the ~$1.3B gross debt
  • Organic vs acquired revenue growth mix - roll-ups can flatter headline growth
  • Backlog trend and book-to-bill to confirm durability of the growth path
  • Goodwill and intangibles as a share of assets given the acquisitive strategy
  • Customer/geographic concentration (public vs private sector exposure)
Valuation / Mispricing
-53
Rich
edge √Σ 20 · risk √Σ 79 · conf 7/10
Price $70.49 vs deserved ~$63-65, roughly 8-11% overpaid - modestly rich, not egregious. attractive below $58.00

Stantec is a strong business (quality score 65) but the composite fair value of $62.81 and signal-adjusted FV of $64.82 both sit below the $70.49 price, implying roughly -8% to -11% downside to deserved value. The anchored-PE method independently lands at $62.81, so the FV signal is internally consistent rather than a runaway output. Earnings quality is high, so there is no haircut to apply, but there is also no hidden cash-adjusted discount to unlock.

Cheap signals 1
m20
High earnings quality supports the deserved price
FCF up 2.5x in four years, earnings backed by cash, negligible dilution - no haircut needed, so the deserved value holds up. This limits downside but does not create upside from here.
Rich / priced-in 3
m55
Price above composite FV
Composite FV $62.81 and signal-adjusted FV $64.82 both trail the $70.49 price by 8-11%. No margin of safety at current levels.
m45
Anchored-PE confirms full multiple
Anchored-PE lands at $62.81 - the market is already paying up for the mid-teens revenue compounding and margin expansion story. Multiple re-rating from here needs a new catalyst the bear case explicitly says is absent.
m35
Priced as a compounder, not a bargain
Narrative is 'steady-compounder' with sticky backlog and infra tailwinds - all of which the market has clearly recognized. Buying quality at full price is a zero-edge trade on valuation.
Fully valued. I like the business but I am not paying $70 for a $63-65 deserved value on a mature consulting compounder - that is negative expected return before anything goes wrong. I want it in the high $50s (roughly 15% below FV) before it is interesting, which historically shows up in industrials during a growth scare or a bad-project write-down. Until then, this is a watch, not a buy.
Verify before trusting this (4)
  • Backlog growth and book-to-bill in latest quarter - the main driver of whether mid-teens growth is sustainable
  • Organic vs acquired revenue split - anchored-PE assumes durable growth, M&A-heavy growth deserves a lower multiple
  • Margin trajectory guidance - any softening validates the bear's labor-cost concern and lowers deserved value
  • Net debt trajectory - moderate leverage is the one quality blemish and matters for the fair-value bridge
General Sentiment
+24
Tailwind
tail √Σ 65 · head √Σ 40 · conf 6/10

STN sits inside a benign but unspectacular sentiment backdrop. The market regime is mildly risk-on (score +22, VIX 16, S&P only 1.6% off highs), and with a beta of just 0.72 the tape barely moves this name either way. What matters more is the narrative: a low-intensity, moderate-durability steady-compounder story tied to infrastructure spending, net-zero capex, and urbanization. That story is quietly in favor - it is not a mania, but the E&C consulting cohort has been a preferred way to play multi-year public infrastructure and energy-transition capex, and STN is a first-call name in that basket. Momentum confirms the pressure is constructive: 12% CAGR with low volatility, the profile allocators reward in a neutral tape. The main offset is macro sensitivity - 10y at 4.68% and a 26.9 market PE cap multiple expansion for a name already at an 8.7% premium, and the bear framing (commoditized consulting, labor cost pressure) is the argument that keeps the narrative from getting loud. Net: a genuine but ordinary tailwind, not a decisive force.

Tailwinds 3
m45
Infrastructure/net-zero narrative is quietly in favor
The E&C consulting cohort is a preferred vehicle for public infrastructure and energy-transition capex themes. Durability is moderate and intensity minimal, so it is a steady bid rather than a mania - a real but modest tailwind.
m40
Strong, low-volatility momentum in a calm tape
12.1% CAGR with low revenue-growth variance is exactly the profile allocators reward in a neutral-to-risk-on regime. Trend-followers and quality-momentum funds keep this name on the buy side.
m25
Low beta cushions any tape wobble
Beta 0.72 means the mild +22 regime helps, and any risk-off flare would only lightly graze the name. Sentiment volatility is dampened structurally.
Headwinds 2
m35
Rates and market multiple cap the story
10y 4.68% and a 26.9 market PE limit how far the compounder narrative can push STN's multiple higher when it already trades at a premium. Not a de-rating force, but a ceiling.
m20
Narrative is functional, not passionate
Low cult coefficient and minimal intensity mean there is no marginal buyer chasing the story. Sentiment will not surprise to the upside on ordinary prints.
Net tailwind, but a modest one. The tape is calm, the beta is low, and STN sits in the infrastructure-consulting basket that allocators are happy to own as a steady expression of net-zero and public capex themes - momentum confirms buyers are being rewarded. It is not a loud story though, and rates plus a rich market multiple cap how far sentiment alone can push the stock. I lean tailwind with medium conviction: this is a name sentiment is quietly holding up, not one it is chasing.
Verify before trusting this (4)
  • Whether infrastructure/net-zero capex headlines stay supportive or fade as a political theme
  • Analyst target revisions after next print - are estimates still drifting up or flattening
  • Any crack in the low-volatility growth profile (a single messy quarter would hit a premium name hard)
  • A meaningful VIX spike above 20 that would test whether low beta actually protects the name
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
not run

This lens hasn't been run for this ticker yet.

The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
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My Notes personal — only you see this
v1.1.562 · 9b2927c4 · 2026-08-22 16:52:06