TSE:STN

Stantec Inc (STN.TO)

104.03
+1.92 (1.88%)
as of Jun 4, 2026, 2:48:10 pm Market Open.
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Investor Insights
star iconJun 4, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Experts express a generally positive outlook on Stantec Inc (STN-T), emphasizing its ability to leverage AI technology rather than being replaced by it. They note that the company's recent securing of a contract for upgrading water and wastewater infrastructure positions it well for future growth, predicting a 10% rise in both profits and dividends. With a solid yield of 0.65% and a significant growth expectation, the stock is seen as a good entry point. Comparisons with WSP indicate that both firms are well-managed and strongly positioned in the infrastructure spending cycle, but STN may have more growth potential given its smaller size. Overall, large established companies like Stantec are favored for their safety and stability amid economic uncertainty.

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Consensus
Positive
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Valuation
Fair Value
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Similar
WSP
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.
PAST TOP PICK
(A Top Pick Jan 25/18, Down 15%) Their construction made them miss their earnings by 12%. They are exiting that business. Core consulting is increasing. Trading at 14 times. Very cheap.
HOLD
They have operations in US and Canada. They were growing good in US with the housing market. They bought a company in the US with a construction division, which comes with lower margins. It is a well managed company and with the infrastructure spending in both US and Canada, he would continue to hold it.
TOP PICK

They just sold their construction business, which is a catalyst. Their contruction obscured their consulting business which will shine thought now. Got a good balance sheet so they can contine to buy. 17% EPS growth. It's trading below its peers. An infrastructure play, so even in a late cycle they can still attract capital. (1.65% dividend yield; no price target given)

COMMENT

STANTEC vs. AECON - He's studying the infrastructure space closely. He has no criticism about Stantec, but he prefers Aecon for its balance sheet ($260 million in cash) and low debt. And its new CEO has global experience, which is a catalyst for Aecon and will help them go global. He hasn't bought ARE yet, but will.

TOP PICK

This is an engineering company that bought MWH, which was a water infrastructure company that had a construction division. They had not been in the construction business before. Construction can have cost overruns that can bite, and this has happened to Stantec and it has hurt their earnings. They are going to put this business up for sale. This company is a prime beneficiary of infrastructure and water spending. He owns this and SNC-Lavalin and sees a good future for both. He thinks that Stantec is better for the short term than SNC. (Analysts’ price target is $37.27)

COMMENT

He prefers SNC. Stantec is recovering. It's very US (California)-oriented. As the US recovers, this stock is starting to move, but SNC is cheaper.

HOLD

Good company. Well managed company. Have been rangebound for the last thee years. Good dividend. Few of the companies that score 100 on dividend quality on his model. Steady cash flow. Low beta dividend growth story.

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