Stantec Inc revenue growth accelerated from 13.3% in 2014 to 14.4% in 2015
25.02.2016 • About Stantec Inc (
$STN) • By InTwits
Stantec Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Stantec Inc is a growth stock: 2015 revenue growth was 14.4%, 5 year revenue CAGR was 14.1% at 2015 ROIC 14.2%
- Stantec Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 72.5%.
- CAPEX is quite volatile: 38.1 in 2015, 42.7 in 2014, 52.6 in 2013, 22.7 in 2012, 21.8 in 2011
- The company has highly profitable business model: ROIC is at 14.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Stantec Inc ($STN) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,379 | 1,554 | 1,832 | 2,075 | 2,374 | 14.4% |
| Gross Profit | 763 | 854 | 1,002 | 1,138 | 1,293 | 13.5% |
| SG&A | 565 | 632 | 746 | 846 | 989 | 16.8% |
| EBITDA | 108 | 222 | 256 | 292 | 304 | 4.0% |
| Net Income | 13 | 121 | 146 | 164 | 156 | -4.9% |
Balance Sheet
|
|---|
| Cash | 36 | 41 | 143 | 154 | 67 | -56.2% |
| Short Term Debt | 60 | 43 | 37 | 53 | 133 | 150.2% |
| Long Term Debt | 237 | 256 | 201 | 256 | 232 | -9.3% |
Cash flow
|
|---|
| Capex | 22 | 23 | 53 | 43 | 38 | -10.8% |
Ratios
|
|---|
| Revenue growth | 12.4% | 12.7% | 17.9% | 13.3% | 14.4% | |
| EBITDA growth | -39.1% | 105.2% | 15.4% | 14.0% | 4.0% | |
| Gross Margin | 55.4% | 55.0% | 54.7% | 54.9% | 54.5% | -0.4% |
| EBITDA Margin | 7.9% | 14.3% | 14.0% | 14.1% | 12.8% | -1.3% |
| Net Income Margin | 0.9% | 7.8% | 8.0% | 7.9% | 6.6% | -1.3% |
| SG&A, % of revenue | 41.0% | 40.7% | 40.7% | 40.8% | 41.6% | 0.9% |
| CAPEX, % of revenue | 1.6% | 1.5% | 2.9% | 2.1% | 1.6% | -0.5% |
| ROIC | 6.5% | 17.5% | 18.5% | 17.9% | 14.2% | -3.7% |
| ROE | 2.0% | 17.9% | 18.1% | 16.6% | 13.0% | -3.6% |
| Net Debt/EBITDA | 2.4x | 1.2x | 0.4x | 0.5x | 1.0x | 0.4x |
Revenue and profitability
The company's Revenue jumped on 14.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.77 pp from 7.1% to 7.9% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 0.88 pp from 40.8% to 41.6% in 2015.
Net Income marign decreased slightly on 1.3 pp from 7.9% to 6.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Stantec Inc had CAPEX/Revenue of 1.6%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at good ROIC (14.17%) and ROE (12.98%). ROIC decreased on 3.7 pp from 17.9% to 14.2% in 2015. ROE decreased on 3.6 pp from 16.6% to 13.0% in 2015.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA surged on 0.4x from 0.5x to 1.0x in 2015. Debt surged on 18.1% in 2015 while cash dropped on 56.2% in 2015.
Management team
Stantec Inc's CEO is Robert J Gomes "Bob". Robert J Gomes "Bob" is a founder and has 9 years tenure at the company.
Appendix 1: Peers in Industrial
Below we provide Stantec Inc benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | | 19.7% | 0.9% | 50.5% | 35.3% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 13.0% | 10.4% | 4.9% | 9.1% | 8.3% |
|---|
| Stantec Inc ($STN) | | 12.7% | 17.9% | 13.3% | 14.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 25.0% |
|---|
| Stantec Inc ($STN) | 55.4% | 55.0% | 54.7% | 54.9% | 54.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.3% | 9.2% | 8.3% | 7.2% | 10.0% |
|---|
| Stantec Inc ($STN) | 7.9% | 14.3% | 14.0% | 14.1% | 12.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 3.9% |
|---|
| Stantec Inc ($STN) | 1.6% | 1.5% | 2.9% | 2.1% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 9.1% | 9.3% | 8.5% | 8.5% | 9.4% |
|---|
| Stantec Inc ($STN) | 6.5% | 17.5% | 18.5% | 17.9% | 14.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | 1.6x |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.3x |
|---|
| Stantec Inc ($STN) | 2.4x | 1.2x | 0.4x | 0.5x | 1.0x |
