Stantec Inc. provides planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics. The Company's three business operating units include Buildings, Energy & Resources, and Infrastructure. The company was founded in 1954 and is based in Edmonton, Canada.
STN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for STN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Stantec Inc ranked in the 70th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 145.67%. The most interesting components of our discounted cash flow analysis for Stantec Inc ended up being:
As a business, STN is generating more cash flow than 70.98% of positive cash flow stocks in the Industrials.
Stantec Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 15.49% of tickers in our DCF set.
Stantec Inc's effective tax rate, as measured by taxes paid relative to net income, is at 18 -- greater than 69.35% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Stantec Inc? See ACY, FELE, KBR, AIT, and NEWA.
Firms to provide programming, architecture, engineering, and laboratory design servicesEDMONTON, Alberta, Dec. 17, 2020 (GLOBE NEWSWIRE) -- TSX, NYSE:STN FRAMEWORK Design Partners (“FRAMEWORK”), a joint venture of leading Canadian design firms Stantec, Merrick and Dialog, was recently awarded a base contract by the Government of Canada to support the renewal of government research facilities across Canada. FRAMEWORK will develop laboratory standards, functional programming, and concept designs for federal research and laboratory facilities over the next five years. The total potential contract value is CA$100 million for architecture, engineering, and laboratory design.“As a global leader committed to sustainable design that positively impacts the communities around us, this transforma...
EDMONTON, Alberta and MINNEAPOLIS, Dec. 03, 2020 (GLOBE NEWSWIRE) -- TSX, NYSE: STNGlobal engineering and design firm Stantec has signed a Letter of Intent to acquire Wenck, a US-based environmental engineering firm with core expertise in air, water, waste, food processing, natural resources, and infrastructure. Founded in 1985, Wenck operates both nationally and internationally, providing complete environmental, engineering, and response solutions with 300 multidisciplinary technical experts. The terms of the transaction were not disclosed. This acquisition will immediately add depth and breadth to Stantec’s environmental services team, especially in the US Midwest. The environmental services industry is experiencing significant growth, with opportunities in the US energy, infrastruct...