# Stantec (STN)



## Eclectic12 (Oct 20, 2010)

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/2012/02/16/stantec-soars-on-new-dividend/

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


Any thoughts or comments?


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## PMREdmonton (Apr 6, 2009)

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.


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## humble_pie (Jun 7, 2009)

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.


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## riseofamillionaire (Feb 23, 2012)

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


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## Eclectic12 (Oct 20, 2010)

riseofamillionaire said:


> 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


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## doctrine (Sep 30, 2011)

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.


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## treva84 (Dec 9, 2014)

After recent drop in share price it seems to be fairly valued with a PEG of just over 1. Solid earnings growth; not a long dividend history but has been solidly growing as well. Buy now or wait and see?


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## leeder (Jan 28, 2012)

I own some Stantec in my portfolio. As stated, it has grown its dividend for the past couple years even though the yield is not high. It's well managed and geared towards growth by acquisition, similar to many companies in this space. The sector is quite fragmented, so there should be plenty of potential acquisition targets. It has very clean balance sheet, with very little debt. 

The price has gone down as a result of oil price. I read a report somewhere which showed that Stantec has a good portion of its projects related to the oil and gas sector. I don't remember the exact figures -- I'd like to say 1/3 of its projects are related to oil and gas (don't quote me). I recall the same report saying WSP Global had the least exposure. 

I believe Stantec also announced an acquisition yesterday, which may have contributed to the price drop. 

In my opinion, there's potential growth for this company. Under $30 is not a bad entry price as long as you can stomach some volatility.


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## treva84 (Dec 9, 2014)

leeder said:


> I own some Stantec in my portfolio. As stated, it has grown its dividend for the past couple years even though the yield is not high. It's well managed and geared towards growth by acquisition, similar to many companies in this space. The sector is quite fragmented, so there should be plenty of potential acquisition targets. It has very clean balance sheet, with very little debt.
> 
> The price has gone down as a result of oil price. I read a report somewhere which showed that Stantec has a good portion of its projects related to the oil and gas sector. I don't remember the exact figures -- I'd like to say 1/3 of its projects are related to oil and gas (don't quote me). I recall the same report saying WSP Global had the least exposure.
> 
> ...


I hope I'm comfortable with volatility, considering a most of my holdings are financial / energy companies currently! 

After consideration, even though I think it's fairly valued, I'm going to wait until it goes on sale.


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