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TSE:STN

Stantec Inc (STN.TO)

96.03
+0.31 (0.32%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
91 watching
0
HOLD
It's been a pretty good period to hold it as they transition more to a consulting company. It is not cheap . Hang on to it as there is a lot of infrastructure spending taking place in the world.
PAST TOP PICK
(A Top Pick Jul 24/20, Up 41%) An engineering first. Still holds it. A great company. Hasn't done much for a while during which they made some acquisitions in the environmental tech. They stand to benefit from the infrastructure spending south of the boarder. The election cycle in Canada will also see infrastructure spending being announced. Likes the consistent dividends. 8% annual increase in dividends.
BUY ON WEAKNESS

Good operator. Serial acquirer, and he's not averse to this. Went sideways for a while. Last 8-9 quarters, meaningfully beating estimates. Now back in gear. This space is advantaged by big US infrastructure spending. A bit of ahead of itself. ROE is about 13%. You could buy on a meaningful pullback. Not his favourite horse in the sector, which is SNC.

BUY
Debt levels are coming up. Still lots of runway. More of a sense of urgency about getting infrastructure projects done. Positive tailwind on infrastructure. You want to own consulting and engineers. Good upside on valuation multiple.
TOP PICK
A Canadian project developer. A turnaround story that has seen a big share price increase. They have margins at 53% and revenue continues to grow in high single-digit levels. They are in Canada, the US and the UK. Government stimulus will include infrastructure and this will benefit the company. Yield 1.47% (Analysts’ price target is $46.59)
BUY ON WEAKNESS
When looking at numbers, it's historical. This company has been in turnaround since they had to sell part of their water business acquisition in the UK. The stock went up last quarter due to the turnover. They have 9% return on capital which is starting to show growth. Dividend growth is starting to come up at 6% so it is promising and have started to catch investors' eyes again.
TOP PICK
Global warming will cause more disasters and there will be a need for infrastructure. They were in the penalty box but have started turning around since the last quarter. The acquisition was written down and got burnt, but now the company has environmental and infrastructure. (Analysts’ price target is $38.41)
PAST TOP PICK
(A Top Pick Oct 26/18, Down 14%) Sold most of it. At the time, it was cheap compared to peers and defensive. He believed that their multiple would increase if they sold off their construction business. However, they had higher costs and softer activity. The stock didn't respond the way he wanted to, and there is problems with accelerated work reduction.
PAST TOP PICK
(A Top Pick Aug 14/18, Down 14%) He sold out of it at $31.50. This stock has not gone anywhere for several years. They have not signed new contracts or acquiring, so he had enough and exited.
COMMENT

Sold off the construction side? STN-T sold off the construction side of the business, where margins were poorer. They will work to reduce debt going forward, so he is not concerned. He would prefer WSP-T.

DON'T BUY
Engineering and construction company. For a couple of years it was mainly consulting, now more doing construction. It could be a mess if not executed well. A show me stock. Cyclical. He would stay clear of it.
COMMENT

WSP Global is pretty much the gold standard. They are pretty much 100% consulting, whereas STN-T and SNC-T are not. He has shied away from the whole sector. The problem is the engineering and construction business, which he has never liked. Margins are razor thin. STN-T wants to get away from E&C. He would buy WSP-T on a correction. STN-T might be a buy at some other point. SNC-T he stays way from and has done so for many years.

BUY
They almost meet his criteria. They are aggressive at acquiring other engineering firms. They have a good history of increasing earnings per share. It has traded sideways for years. They are a good company
PAST TOP PICK
(A Top Pick Apr 18/18, Up 5%) He liked the infrastructure expenditure outlook and their acquisition in construction a year prior. That acquisition has now been sold. He hopes governments will spend again in the space. He will continue to hold.
PAST TOP PICK
(A Top Pick Jan 29/18, Down 9%) They were early on this pick. One of the leaders in architecture in water systems. The dividend is growing. Still buying more. Trading at 12 or 13 times 2021 earnings.
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