Stantec Historic Report. We first rated Stantec in 1999 as a Strong Buy at a price of $10.00. ($1.25 adjusted for subsequent splits. This old report is many years out of date but it just illustrates the long-term success of our analysis methods.
As of June 2, 2013, Stantec was trading at $34.72, an increase of a remarkable 2,678% since our first rating of Strong Buy at $1.25 (split adjusted).
The format of this report is somewhat old, our reports today are in in the same basic format but contain more written comments.
| COMPANY IDENTIFICATION SECTION | |
| Stantec Inc. | |
| Based on financials from: | Dec 98 + Q2 99 |
| Symbol and Exchange: | STN, Toronto |
| Currency: | Canadian $ |
| Category: | Growth |
| Description of business: | Primarily a consulting engineering firm. Substantial investment in newer businesses of Technology and IT has not yet resulted in significant revenue or profit. |
| Contact: | corp@stantec.com |
| Web-site: | www.stantec.com |
| INVESTMENT-PICK’S RECOMMENDATION | |
| LAST UPDATED: | 24-Sep-99 |
| Current Price: | $10.05 |
| Current Recommendation: | Strong Buy |
| Price when first featured: | $10.00 |
| Date first featured: | 3-Sep-99 |
| Recommendation when first featured: | Strong Buy |
| Price increase since first featured: | 0.5% |
| LATEST YEAR INCOME AND PRICE / EARNINGS RATIO | |
| Latest four quarters annual sales $ millions: | $148.9 |
| Latest four quarters annual earnings $ millions: | not available |
| P/E ratio based on latest four quarters earnings: | not available |
| Latest fiscal year annual earnings: | $7.2 |
| P/E ratio based on latest fiscal year earnings: | 10.0 |
| Fiscal earnings adjusted for unusual gains/losses: | $7.2 |
| P/E ratio for fiscal earnings adjusted for gains/losses: | 10.0 |
| Dividend Yield: | 0.0% |
| Latest fiscal year annual cash flow $ per share: | $1.67 |
| Price to cashflow ratio: | 6.0 |
| Latest fiscal year operating earnings (before interest, depreciation, taxes and unusual gains or losses) $ millions: | $13.4 |
| Operating income as a percent of sales: | 9.0% |
| Latest Balance Sheet and Liquidity Ratios | |
| Price to book value ratio: | 1.22 |
| Actual value of assets versus book value: | Likely lower |
| Number of common shares in millions: | 7.146 |
| Market Capitalization $ millions: | $71.8 |
| Latest four quarters return on book equity: | 12.2% |
| Latest four quarters return on market capitalization: | 10.0% |
| Debt (and equivalent) to common equity ratio: | 1.0 |
| Current assets / current liabilities: | 1.7 |
| Liquidity: | Good liquidity |
| GROWTH RATIOS AND OUTLOOK | |
| 4 years compounded growth in sales/share | 18.5% |
| Volatility of sales growth: | steady growth |
| 4 years compounded growth in earnings/share | 11.1% |
| Volatility of earnings growth: | steady growth |
| 4 years comp. growth in operating earnings/share | not available |
| Projected current year earnings $millions: | not available |
| Projected price to earnings ratio: | not available |
| COMMENT SECTION | |
| VALUE AND GROWTH RATIOS: Selling at only a small premium to book value. Low P/E. Strong growth. | |
| OUTLOOK FOR BUSINESS: Outlook is positive given strong Alberta economy and the company’s plans for further expansion by acquisition. | |
| ACCOUNTING ISSUES: No opinion | |
| SHARE STRUCTURE USED: Normal common shares, 1 vote per share | |
| MANAGEMENT QUALITY: No opinion | |
| GENERAL COMMENTS: An opportunity to invest in an established growth company at very reasonable valuation ratios. | |
| RISKS: May tend to be cyclic with sales related to industrial activity. Engineering design involves risks that are difficult or impossible to quantify in advance and therefore may not be entirely covered by insurance. Investments in Technology businesses. do not appear to be profitable and may be a drain on resouces and money. | |
| RECOMMENDATION: A strong buy based on ratios and growth. | |
| DISCLAIMER: Use this site at your own risk. Errors may inadvertently occur. Opinions may not always be valid. Check other sources. We hereby deny all responsibility for all use of any information or advice posted here. We usually hold positions in the investments featured here. | |
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