Stock Price & Analysis

Buy STN stock as it has a Strong Buy analyst consensus with a 15.26% potential upside and positive insider sentiment.

Stantec (STN) is expected to reach a price target of $95 by the end of 2025, driven by positive analyst sentiment and strong financial performance. The stock currently trades at $78.51 with a consensus "Strong Buy" rating and an average price target of $93.69. Analysts highlight improving profitability and operational efficiency as key drivers for the stock's growth.

The S1 support level for STN Stock is $80.6 ,The R1 resistant level for STN Stock is $85.43.

As of the end of day on 2025-03-17, the price of STN Stock was $82.74.

The target price for STN Stock according to analyst rating is 98.05, with the highest price target at 102.59 and the lowest at 93.58. Analysts have a Strong Buy rating on STN Stock overall.

The market cap of STN is $9.4B.

Analysis and Insights

Valuation Metrics:

STN's current valuation metrics suggest potential overvaluation. The price-to-earnings (P/E) ratio is elevated at 35.59 for Q4 2024, significantly higher than industry averages. The EV/EBITDA ratio of 15.14 indicates a premium relative to earnings, and the price-to-sales (P/S) ratio of 4.37 reflects a high valuation relative to revenue. The price-to-book (P/B) ratio of 2.19 further suggests that the market is pricing in significant growth expectations.

Market Sentiment and Analyst Consensus:

Analysts maintain a Strong Buy rating on STN, with an average price target of $97.97, indicating a 15% upside. Recent insider buying activity and positive earnings reports, including a quarterly revenue of $1.93 billion, support the bullish sentiment. However, the stock's current price may already reflect these positive expectations, limiting near-term upside.

Dividend Yield:

The dividend yield of 0.74% is relatively low compared to industry peers, which may not attract income-focused investors. However, the company recently increased its dividend by 7.1%, signaling confidence in cash flows.

Recent Stock Performance:

STN's stock gained 8.6% following strong quarterly results, aligning with positive market sentiment. This upward movement reflects investor optimism about the company's growth prospects.

Conclusion:

While STN's strong financial performance and positive analyst sentiment are promising, its high valuation metrics suggest the stock may be overvalued. Investors should consider whether the company can sustain its growth trajectory to justify the current price levels.

Stantec Inc. is a Canada-based sustainable design and engineering company. The Company is a provider of comprehensive professional services in the area of infrastructure and facilities for clients in the public and private sectors. The Company's segments include Canada, United States and Global. Its services include engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics, from initial project concept and planning through to design, construction administration, commissioning, maintenance, decommissioning and remediation. Its serves various sectors, including buildings; community development; energy; environment; federal government; mining, minerals and metals; transportation, and water. The Company, through its subsidiary, Environmental Systems Design, Inc., provides building engineering services, specializing in mission critical and data center services.

The price prediction for STN Stock by 2030 is around $120, driven by potential improvements in market conditions and company performance. The current price of $84.69 as of 2025-03-11 suggests upside based on general growth trends. However, this prediction is speculative and should be verified with more specific data on STN.

STN has a total of 28000 employees.