Stantec (STN)

[Eclectic12]

I was surprised to find references to STN but no thread so I thought I'd start one.

I noticed that it is now starting to pay a small dividend:
http://business.financialpost.com/20...-new-dividend/

There are now offices in Ontario, as well as their sign/logo showing up on projects.


Any thoughts or comments?

[PMREdmonton]

Their valuation seems kind of rich given fairly pedestrian revenue growth and non-existent earnings growth over the last 3 years. They also seem to have some type of an unusual expense every year that is averaging about $45M/yr which just devastates their earnings.

They trade at a PE of > 100 right now and even if you back out their unusual expense last year they are trading around a PE of about 30. Revenue growth looks like it is around 10%/yr which is good but I'm not sure it is deserving of that multiple. They are in the infrastructure game which should be strong over the next decade but even with its warts SNC or Aecon may be a better buy.

[humble_pie]

another one in the sector that i've looked into mildly is Genivar (hq'd in montreal, gotta support the local guys.)

operates coast-to-coast in canada, a toe in the caribbean, has plans to expand.

never bought but would be grateful for any opinion.

[riseofamillionaire]

I prefer Bird Construction... great balance sheet, lots of cash, 1billion plus backlog, 5% yield.

[Eclectic12]

I prefer Bird Construction... great balance sheet, lots of cash, 1billion plus backlog, 5% yield.

Thanks ... I'll check it out and maybe start a separate thread.


Cheers

[doctrine]

Bird is a great company. I bought last year and its already been through two ~10% dividend increases. I bought at $12, watched it drop below $10 and now its $14. If you like the company, just wait for a slow quarter and then pick it up. They have more than enough cash to sustain the regular dividends. Also, they don't issue any stock for compensation so there is zero dilution.