Stock Idea…Stantec Inc

Stock Idea…Stantec Inc

Symbol : STN

Exchange: TSX

Market Cap : 3.7 Billion

Revenue : 5.1 Billion
Three Year Revenue Growth : 26.7 %
Investment Type : Mid Cap Value/Growth

Price/Earnings : 37.9

Forward P/E : 15.9

Price/Book : 1.9

Price/Sales : 0.7

Price/Cash Flow : 14.0

Price : 32.21
Investment Stem : My own investment portfolio
                                 Cheap Small Cap Screen
                                 Cheap Small Cap Screen Two
 
Stantec Inc provides professional services in the area of infrastructure and facilities for clients in the public and private sectors. The company's services include planning, engineering, architecture, interior design, surveying and project management.

Stantec Inc. is a provider of professional services in the area of infrastructure and facilities for clients in the public and private sectors. The Company's operates through four segments Consulting Services-Canada, Consulting Services-United States, Consulting Services-Global and Construction Services. The Company's services include engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, construction services, project management, and project economics, from initial project concept and planning through to design, construction, commissioning, maintenance, decommissioning and remediation. The Company provides professional consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental services, project management and project economics in the area of infrastructure and facilities, principally under fee-for-service agreements with clients.

The dreaded metrics from Morningstar…

http://quote.morningstar.ca/Quicktakes/stock/keyratios.aspx?t=STN&region=CAN&culture=en-CA&ops=clear

The company’s website…

https://www.stantec.com/en

Recently punished by the market (the crowd), after they announced their quarterly earnings, their costs went up due to the integration of a recent acquisition (water company in the states) which should be accretive to earnings and cash flows in the longer term. Management has a solid record of good capital allocation. Dividend yield of 1.71...Dividend was first initiated in early 2012 with a 5 year dividend growth of 10.8 percent. The dividend growth indicates that management is confident they can grow their cash flows and earnings in the future Sometimes the market over-reacts to a short term event (quarterly earnings) and puts the stock of a good company up on sale. This is one of those times. An opportunity for the individual investor who can stand apart from the crowd and think for himself.