Upside case
Bull case
$198+114.6%
STN would need investors to value it at roughly 44x earnings — about 23x more generous than today's 20x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Stantec Inc. (STN) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
18
analysts
6 bullish · 1 bearish · 18 covering STN
Strong Buy
0
Buy
6
Hold
11
Sell
1
Strong Sell
0
Consensus Target
$62
-32.6% vs today
Scenario Range
$61 – $198
Model bear to bull value window
Coverage
18
Published analyst ratings
Valuation Context
20.5x
Forward P/E · Market cap $10.5B
STN price targets
Three scenarios for where STN stock could go
Current
~$92
Confidence
58 / 100
Updated
May 1, 2026
Where we are now
Current · $92
Bear
$61
Base
$196
Bull
$198
Market caseClosest to today
Base case
$196+113.1%
At 44x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$61-33.3%
If investor confidence fades or macro conditions deteriorate, a 7x multiple contraction could push STN down roughly 33% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Stantec Inc.
STN · NYSEIndustrialsEngineering & ConstructionDecember year-end
Stantec is a professional services firm that provides engineering, architecture, and environmental consulting for infrastructure and facilities projects globally. It generates revenue primarily from consulting fees across its three main segments—buildings, energy & resources, and infrastructure—with the infrastructure segment contributing roughly half of total revenue. The company's competitive advantage lies in its integrated service model and long-term client relationships across public and private sectors, which create recurring project pipelines.
Market Cap
$10.5B
Revenue TTM
$7.5B
Net Income TTM
$448M
Net Margin
6.0%
STN Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
67%Exceptional
12 quarters tracked
Revenue Beat Rate
50%Exceptional
vs consensus estimates
Avg EPS Surprise
+4.1%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$0.81/$0.79
Revenue
$1.4B/$1.5B
Q3 2025
EPS
$0.98/$0.98
Revenue
$1.4B/$1.7B
Q4 2025
EPS
$1.11/$1.11
Revenue
$1.5B/$1.7B
Q1 2026
EPS
$0.90/$0.87
Revenue
$1.2B/$1.2B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.81/$0.79 | +2.5% | $1.4B/$1.5B | -12.5% |
| Q3 2025 | $0.98/$0.98 | +0.0% | $1.4B/$1.7B | -16.8% |
| Q4 2025 | $1.11/$1.11 | +0.0% | $1.5B/$1.7B | -7.0% |
| Q1 2026 | $0.90/$0.87 | +3.4% | $1.2B/$1.2B | -0.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$8.4B
+12.5% YoY
FY2
$9.7B
+15.7% YoY
EPS Outlook
FY1
$4.43
+12.8% YoY
FY2
$4.97
+12.3% YoY
Trailing FCF (TTM)$805M
FCF Margin: 10.8%
Next Earnings
May 13, 2026
Expected EPS
$0.95
Expected Revenue
$1.2B
STN beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
STN Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $7.5B
Product Mix
Latest annual revenue by segment or product family
Infrastructure
27.2%
+27.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Other countries
63.3%
+72.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
Infrastructure is the largest disclosed segment at 27.2% of FY 2024 revenue, up 27.7% YoY.
Other countries is the largest reported region at 63.3%, up 72.6% YoY.
STN Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Overvalued
Fair value est. $78 — implies -15.2% from today's price.
Premium to Fair Value
15.2%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
STN
39.5x
vs
S&P 500
25.2x
+56% premium
vs Industrials Trailing P/E
STN
39.5x
vs
Industrials
25.9x
+53% premium
vs STN 5Y Avg P/E
Today
39.5x
vs
5Y Average
25.2x
+57% premium
Forward PE
20.5x
S&P 500
19.1x
+7%
Industrials
20.8x
-2%
5Y Avg
—
—
Trailing PE
39.5x
S&P 500
25.2x
+56%
Industrials
25.9x
+53%
5Y Avg
25.2x
+57%
PEG Ratio
3.10x
S&P 500
1.75x
+77%
Industrials
1.59x
+95%
5Y Avg
—
—
EV/EBITDA
17.7x
S&P 500
15.3x
+16%
Industrials
13.9x
+27%
5Y Avg
12.2x
+45%
Price/FCF
28.3x
S&P 500
21.3x
+33%
Industrials
20.6x
+37%
5Y Avg
17.1x
+65%
Price/Sales
1.9x
S&P 500
3.1x
-39%
Industrials
1.6x
+20%
5Y Avg
1.2x
+62%
Dividend Yield
0.66%
S&P 500
1.88%
-65%
Industrials
1.24%
-47%
5Y Avg
1.30%
-49%
| Metric | STN | S&P 500 | Industrials | 5Y Avg STN |
|---|---|---|---|---|
| Forward PE | 20.5x | 19.1x | 20.8x | — |
| Trailing PE | 39.5x | 25.2x+56% | 25.9x+53% | 25.2x+57% |
| PEG Ratio | 3.10x | 1.75x+77% | 1.59x+95% | — |
| EV/EBITDA | 17.7x | 15.3x+16% | 13.9x+27% | 12.2x+45% |
| Price/FCF | 28.3x | 21.3x+33% | 20.6x+37% | 17.1x+65% |
| Price/Sales | 1.9x | 3.1x-39% | 1.6x+20% | 1.2x+62% |
| Dividend Yield | 0.66% | 1.88% | 1.24% | 1.30% |
STN trades above S&P 500 benchmarks on 4 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolSTN Financial Health
Verdict
Strong
STN generates $805M in free cash flow at a 10.8% margin — 10.4% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$7.5B
Revenue Growth
TTM vs prior year
+4.4%
Gross Margin
Gross profit as a share of revenue
42.3%
Operating Margin
Operating income divided by revenue
8.8%
Net Margin
Net income divided by revenue
6.0%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.92
Free Cash Flow (TTM)
Cash generation after capex
$805M
FCF Margin
FCF as share of revenue — the primary cash quality signal
10.8%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
10.4%
ROA
Return on assets, trailing twelve months
5.5%
Cash & Equivalents
Liquid assets on the balance sheet
$229M
Net Debt
Total debt minus cash
$1.8B
Debt Serviceability
Net debt as a multiple of annual free cash flow
2.3× FCF
~2.3 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
13.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.7%
Dividend
0.7%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$0.82
Payout Ratio
Share of earnings distributed as dividends
26.0%
Shares Outstanding
Current diluted share count
114M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageSTN Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Macroeconomic Environment
Stantec (STN) may experience revenue and margin declines due to a softer macroeconomic environment and weaker demand in key markets such as water, buildings, and infrastructure. This could significantly impact the company's financial performance.
High Risk
Cost Overruns
The risk of cost overruns on fixed-price contracts poses a significant threat to Stantec's profitability. Such overruns can lead to unexpected financial burdens, adversely affecting margins and overall earnings.
Medium
Labor Shortages
Stantec faces challenges related to skilled labor shortages, which could hinder project execution and increase operational costs. This issue is particularly pressing in the construction and engineering sectors, where demand for skilled workers is high.
Medium
Integration Challenges
The company may encounter difficulties in integrating acquisitions, which can disrupt operations and lead to inefficiencies. Successful integration is crucial for realizing the anticipated synergies and growth from M&A activities.
Medium
Market Sentiment
Broader economic conditions, including interest rates, inflation, and political developments, can significantly influence STN's stock price. Negative sentiment in the market could lead to increased volatility and downward pressure on the stock.
Lower
Technical Indicators
Some technical indicators suggest that STN may be overbought, indicating a potential risk of a pullback. Investors should monitor these signals closely as they may affect short-term price movements.
Lower
Geopolitical Uncertainty
Global events, such as conflicts and their impact on energy prices, can create a risk-off tone in the market, affecting industrial sector stocks like Stantec. This uncertainty may lead to fluctuations in stock performance.
Lower
Short Interest
While not excessively high, there is notable short interest in STN shares. This could indicate a lack of confidence among some investors, potentially leading to increased volatility.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why STN Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Financial Performance and Growth
Stantec reported a record year in 2025, with net revenue up nearly 11% to $6.5 billion and adjusted EPS up 19.9%. The company achieved a record backlog of $8.6 billion, an increase of 9.5% year-over-year, and anticipates 8.5% to 11.5% net revenue growth for 2026.
Sustainability Focus Drives Revenue
Stantec's commitment to sustainability is a key differentiator, with 68% of its gross revenue (C$5.5 billion) driven by sustainability-focused work. This focus aligns with growing global demand for green energy and water infrastructure solutions.
Active M&A Pipeline for Growth
The company maintains an active M&A pipeline, supported by a strong balance sheet, to drive further value-accretive growth. This strategic approach positions Stantec to capitalize on new opportunities in its sector.
Positive Analyst Sentiment
Analysts maintain a strong consensus for Stantec, with a 'Buy' average rating and several upgrades, including Zacks rating it a 'Strong Buy.' This positive sentiment indicates significant upside potential for the stock.
Consistent Dividend Growth
Stantec has a history of increasing its dividend for 13 consecutive years, with a recent increase to $0.245 per share. The dividend payout ratio is considered healthy and sustainable, reflecting the company's strong financial health.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
STN Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$92.10
52W Range Position
26%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$84.08
+9.5% from the low
52-Week High
$114.52
-19.6% from the high
1 Month
+4.54%
3 Month
-9.29%
YTD
-4.3%
1 Year
+0.8%
3Y CAGR
+14.6%
5Y CAGR
+15.6%
10Y CAGR
+13.8%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
STN vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
20.5x
vs 20.3x median
+1% above peer median
Revenue Growth
+12.5%
vs +3.0% median
+323% above peer median
Net Margin
6.0%
vs 5.2% median
+15% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
STN STN Stantec Inc. | $10.5B | 20.5x | +12.5% | 6.0% | Hold | -32.6% |
TTE TTEK Tetra Tech, Inc. | $8.1B | 20.3x | +9.3% | 9.0% | Hold | +33.8% |
WSC WSC WillScot Holdings Corporation | $4.2B | 22.2x | -0.3% | -2.3% | Buy | +1.2% |
J J Jacobs Solutions Inc. | $14.9B | 17.8x | -5.8% | 1.9% | Buy | +22.3% |
KBR KBR KBR, Inc. | $4.5B | 9.2x | +3.0% | 5.2% | Buy | +47.2% |
DY DY Dycom Industries, Inc. | $13.3B | 32.5x | +17.7% | 5.8% | Buy | -5.5% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
STN Dividend and Capital Return
STN returns 0.7% total yield, led by a 0.66% dividend, raised 13 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
0.7%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
0.66%
Payout Ratio
26.0%
How STN Splits Its Return
Div 0.66%
Dividend 0.66%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.82
Growth Streak
Consecutive years of dividend increases
13Y
3Y Div CAGR
5.9%
5Y Div CAGR
7.1%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
114M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.18 | — | — | — |
| 2025 | $0.65 | +6.3% | — | — |
| 2024 | $0.61 | +4.6% | 0.0% | 1.1% |
| 2023 | $0.58 | +6.7% | 0.1% | 1.1% |
| 2022 | $0.55 | +4.1% | 1.2% | 2.7% |
FAQ
7 questionsSTN Investor Questions
Common questions answered from live analyst data and company financials.
01Is Stantec Inc. (STN) stock a buy or sell in 2026?
Stantec Inc. (STN) is rated Hold by Wall Street analysts as of 2026. Of 18 analysts covering the stock, 6 rate it Buy or Strong Buy, 11 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $62, implying -32.6% from the current price of $92. The bear case scenario is $61 and the bull case is $198.
02What is the STN stock price target for 2026?
The Wall Street consensus price target for STN is $62 based on 18 analyst estimates. The high-end target is $62 (-32.6% from today), and the low-end target is $62 (-32.6%). The base case model target is $196.
03Is Stantec Inc. (STN) stock overvalued in 2026?
STN trades at 20.5x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Stantec Inc. (STN) stock in 2026?
The primary risks for STN in 2026 are: (1) Macroeconomic Environment — Stantec (STN) may experience revenue and margin declines due to a softer macroeconomic environment and weaker demand in key markets such as water, buildings, and infrastructure. (2) Cost Overruns — The risk of cost overruns on fixed-price contracts poses a significant threat to Stantec's profitability. (3) Labor Shortages — Stantec faces challenges related to skilled labor shortages, which could hinder project execution and increase operational costs. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Stantec Inc.'s revenue and earnings forecast?
Analyst consensus estimates STN will report consensus revenue of $8.4B (+12.5% year-over-year) and EPS of $4.43 (+12.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $9.7B in revenue.
06When does Stantec Inc. (STN) report its next earnings?
Stantec Inc. is expected to report its next earnings on approximately 2026-05-13. Consensus expects EPS of $0.95 and revenue of $1.2B. Over recent quarters, STN has beaten EPS estimates 67% of the time.
07How much free cash flow does Stantec Inc. generate?
Stantec Inc. (STN) generated $805M in free cash flow over the trailing twelve months — a free cash flow margin of 10.8%. STN returns capital to shareholders through dividends (0.7% yield) and share repurchases ($0 TTM).