STN - Stantec: Capitalizing On The Infrastructure Boom Whilst Tackling Opportunities And Challenges

2024-06-20 12:33:50 ET

Summary

• Stantec has seen record revenues in Q1 2024, with acquisitions increasing headcount by over 2,700 skilled workers.
• The company's order book backlog is at a record high of $7 billion, with expectations for 7% organic growth over the next three years.
• Stantec's competitive position in the market remains strong, but the rate of growth may not justify an investment at this time.
• Secular tailwinds in Infrastructure projects are expected to benefit Stantec.

Thesis

Stantec ( STN ) is a leading professional services firm providing a variety of services to the built environment. Cyclical tailwinds in the industry have driven the share price higher amid growing revenues and a large order book. With the forward PE now standing at 26x, I believe the time is appropriate to understand if Stantec is worthy of an investment at the current valuation....

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