Stantec Inc Common Stock (STN)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking for a business I can understand, bought at a sensible price. Stantec is an engineering and environmental services firm with 34,000 employees, serving infrastructure, water, facilities and related markets. The latest reported quarter, fiscal Q2 2026, showed revenue of $2.2B, net income of $150.3M, and a 6.75% net margin. Revenue growth of 7.49% and profit growth of 10.69% are respectable; profit is outpacing revenue. Free cash flow of $666.2M, a 6.6% FCF yield on the 2026-10-13 market cap, and ROE of 15.69% show a real money-making enterprise. But ROCE of 6.89% is modest, and debt/equity of 0.81 with an Altman Z-Score of 2.09 means leverage deserves respect. On valuation, at $67.62 the FairStock P/E is 21.33, P/B is 3.23, and PEG is 2.00. The Graham Number is $46.41, so the margin of safety is negative 45.70%: the price is well above a conservative asset-and-earnings anchor. The FairStock Score is 47/100, Piotroski is 6/9. The stock sits near the low end of its 52-week range of $65.35 to $114.52, but cheapness by price history is not the same as value. Stantec has a durable service franchise and recurring public-sector exposure, yet the numbers do not scream bargain. I would want either a lower price or improving returns on capital before calling it compelling.

In plain English: Stantec provides engineering, design, and environmental services for infrastructure and facilities, mostly for public and private clients, with about 34,000 employees. The business is profitable, growing revenue and profit, and produces solid cash left after running the business, though it carries meaningful debt. At the 2026-10-13 close of $67.62, the price looks full versus its earnings and asset value, and an old-school value check suggests it is not cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer