TSE:STN

Stantec Inc (STN.TO)

102.10
+3.17 (3.20%)
as of Aug 4, 2026, 8:00:00 pm Market Open.
187 watching
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Investor Insights
star iconAug 4, 2026, 12:00 am

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

Stantec Inc (STN-T) is currently experiencing a challenging market environment, largely influenced by concerns over AI and the overall economic landscape. While organic growth fell short in the last quarter, analysts maintain a positive outlook, expecting growth to accelerate, especially in sectors like water management, particularly in Germany. Despite short-term market volatility and fears about AI's impact on engineering and consulting firms, reviewers indicate strong fundamentals with a solid balance sheet, strong free cash flow, and competitive margins. Valuations are reportedly compressed, suggesting that the stock is priced attractively relative to its growth potential, with many analysts considering it a good buying opportunity at current levels. Overall, the sentiment among experts reflects confidence in the long-term prospects of Stantec, despite recent market fears.

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Consensus
Buy
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Valuation
Undervalued
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Similar
WSP, WSP
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.

DON'T BUY
Engineering and construction company. For a couple of years it was mainly consulting, now more doing construction. It could be a mess if not executed well. A show me stock. Cyclical. He would stay clear of it.
COMMENT

WSP Global is pretty much the gold standard. They are pretty much 100% consulting, whereas STN-T and SNC-T are not. He has shied away from the whole sector. The problem is the engineering and construction business, which he has never liked. Margins are razor thin. STN-T wants to get away from E&C. He would buy WSP-T on a correction. STN-T might be a buy at some other point. SNC-T he stays way from and has done so for many years.

BUY
They almost meet his criteria. They are aggressive at acquiring other engineering firms. They have a good history of increasing earnings per share. It has traded sideways for years. They are a good company
PAST TOP PICK
(A Top Pick Apr 18/18, Up 5%) He liked the infrastructure expenditure outlook and their acquisition in construction a year prior. That acquisition has now been sold. He hopes governments will spend again in the space. He will continue to hold.
PAST TOP PICK
(A Top Pick Jan 29/18, Down 9%) They were early on this pick. One of the leaders in architecture in water systems. The dividend is growing. Still buying more. Trading at 12 or 13 times 2021 earnings.
COMMENT
Of the E&C companies, this is the most US-centric. If you like the US economy in particular, you'd pick this one, though the stock has gone sideways since its run-up. Stantec is the most expensive, SNC is the cheapest, and Aecon is also cheap.
COMMENT
ARE-T, WSP-T or SNC-T? He owns SNC-T, which has had its issues alongside the Canadian-Saudi Arabia situation. Fundamentally the company performs well. He owns STN-T. He was expecting this space to see better investment following the Canadian government plans to add to infrastructure. He has grown cold to the space as a whole.
PAST TOP PICK
(A Top Pick Jan 26/18, Down 9%) Just exited construction business, pulling down this stock. Trading at 14x, still cheap vs. peers, and expects strong growth this year. Be patient. It'll work out.
COMMENT
He owns SNC instead (better value). If you like the US economy, then you can own STN. Decent growth, well-managed and nothing wrong with it. Just that SNC is cheaper.
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