STN - Stantec: Management Is Optimistic About The Future
2024-03-11 23:12:15 ET
Summary
- Stantec has grown its adjusted EPS at a CAGR of 16% from 2019 to 2023.
- Stantec had a strong 2023 with net revenue rising 14% year over year to C$5.1 billion, and adjusted diluted EPS rising 17% year over year to C$3.67.
- Management sees a strong 2024, and has a goal of growing adjusted diluted EPS at a CAGR in the range of 15% to 18% for its 2024-2026 strategic plan.
- In my view, the market is pricing in several years of fairly rapid adjusted EPS growth into Stantec's valuation, given the forward PE of 27.17 for 2024.
- While it's a high quality company, the valuation makes Stantec stock a 'Hold'.
Stantec Inc. ( STN ) is a global leader in sustainable engineering, architecture and environmental consulting.
From 2015 to 2019, Stantec's adjusted earnings per share did not grow all that much and the company's stock did not rise much during that time....
Stantec: Management Is Optimistic About The Future