TSE:STN

Stantec Inc (STN.TO)

96.64
-0.17 (0.18%)
as of Jun 24, 2026, 1:30:05 pm Market Open.
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Investor Insights
star iconJun 23, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Stantec Inc (STN-T) is viewed positively by various experts, primarily due to its solid growth profile and strong free cash flow generation. Concerns regarding the impact of AI on engineering firms are seen as overstated; rather, AI is expected to enhance their service capabilities. The company won a significant contract for water and wastewater infrastructure, indicating a favorable trend in environmental remediation and infrastructure spending. Analysts anticipate approximately 10% growth in both profits and dividends, positioning STN as an appealing investment with a decent yield. Comparisons with WSP highlight Stantec's potential for growth, particularly due to its smaller size, while focusing on safety in the current uncertain economic climate.

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Consensus
Buy
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Valuation
Fair Value
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Similar
WSP,WS
BUY ON WEAKNESS

Has always liked this and watches it. A very good operator. But what is their organic growth potential? In recent years, WSP has shown a little more growth, but STN is positioned well in infrastucture. He would buy this if the PE were lower. He once owned this.

BUY
They went through a time when the multiple was downgraded until they decided to get out of set contracts. With infrastructure spending go up there are a lot of good tailwinds for them. There is a lot of stimulus going into their industry and its fragmented there now, which should create good opportunities.
COMMENT
STN-T vs. WSP-T. STN-T is a name he holds since 2015. It went through a consolidation phase and then has done quite well. They are making inroads into the environmental space. STN-T would be his preference.
COMMENT
Both companies are fine. If you want to play the infrastructure bill, then he would look at PAVE instead of WSP or STN. PAVE is a good way to play on a diversified basis.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The recent deal is accretive and the balance sheet is minimized. The stock hit an all-time high from the deal. The company has done a nice job in the past few years. Unlock Premium - Try 5i Free

HOLD
It's been a pretty good period to hold it as they transition more to a consulting company. It is not cheap . Hang on to it as there is a lot of infrastructure spending taking place in the world.
PAST TOP PICK
(A Top Pick Jul 24/20, Up 41%) An engineering first. Still holds it. A great company. Hasn't done much for a while during which they made some acquisitions in the environmental tech. They stand to benefit from the infrastructure spending south of the boarder. The election cycle in Canada will also see infrastructure spending being announced. Likes the consistent dividends. 8% annual increase in dividends.
BUY ON WEAKNESS

Good operator. Serial acquirer, and he's not averse to this. Went sideways for a while. Last 8-9 quarters, meaningfully beating estimates. Now back in gear. This space is advantaged by big US infrastructure spending. A bit of ahead of itself. ROE is about 13%. You could buy on a meaningful pullback. Not his favourite horse in the sector, which is SNC.

BUY
Debt levels are coming up. Still lots of runway. More of a sense of urgency about getting infrastructure projects done. Positive tailwind on infrastructure. You want to own consulting and engineers. Good upside on valuation multiple.
TOP PICK
A Canadian project developer. A turnaround story that has seen a big share price increase. They have margins at 53% and revenue continues to grow in high single-digit levels. They are in Canada, the US and the UK. Government stimulus will include infrastructure and this will benefit the company. Yield 1.47% (Analysts’ price target is $46.59)
BUY ON WEAKNESS
When looking at numbers, it's historical. This company has been in turnaround since they had to sell part of their water business acquisition in the UK. The stock went up last quarter due to the turnover. They have 9% return on capital which is starting to show growth. Dividend growth is starting to come up at 6% so it is promising and have started to catch investors' eyes again.
TOP PICK
Global warming will cause more disasters and there will be a need for infrastructure. They were in the penalty box but have started turning around since the last quarter. The acquisition was written down and got burnt, but now the company has environmental and infrastructure. (Analysts’ price target is $38.41)
PAST TOP PICK
(A Top Pick Oct 26/18, Down 14%) Sold most of it. At the time, it was cheap compared to peers and defensive. He believed that their multiple would increase if they sold off their construction business. However, they had higher costs and softer activity. The stock didn't respond the way he wanted to, and there is problems with accelerated work reduction.
PAST TOP PICK
(A Top Pick Aug 14/18, Down 14%) He sold out of it at $31.50. This stock has not gone anywhere for several years. They have not signed new contracts or acquiring, so he had enough and exited.
COMMENT

Sold off the construction side? STN-T sold off the construction side of the business, where margins were poorer. They will work to reduce debt going forward, so he is not concerned. He would prefer WSP-T.

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