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Is this Large Market Cap Stock target price reasonable for Stantec Inc. (NYSE:STN)?

The company in question is, Stantec Inc. (NYSE:STN) currently with a stock price of 23.31 (-0.09% today). The market cap for Stantec Inc. is 2667.79, and is in the sector Services, and Business Services industry. The target price for Stantec Inc. is 25.88. Currently Stantec Inc. is trading with a P/E of 23.4, and a forward P/E of 10.72. Average volume for Stantec Inc. is 20.02 and so far today it is 2587.

Performance in the last year for Stantec Inc. has been -4.02%. For EPS growth, Stantec Inc. has seen a growth of -4.70%, and is looking to grow in the next year to 27.40%. More long term stats show that EPS growth has been 10.00% over the last five years and could be 12.00% for the next five years. Stantec Inc. has seen sales growth quarter over quarter at 30.90%, with EPS growth quarter over quarter at -56.50%. The 20-day simple moving average is -0.06%, with the 200-day simple moving average coming to -2.74%.

Since the IPO date for Stantec Inc. on the 08/05/2005, Stantec Inc. has seen performance year to date to be -4.85%. With Stantec Inc. trading at 23.31, the dividend yield is 1.46%, and the EPS is 1.

So could Stantec Inc., be undervalued? Well as said before P/E is 23.4. The PEG is 1.95, P/S is 1.36 and the P/B is at 1.76. The P/cash is 19.54, with P/free cash flow at 20.86.

Stantec Inc. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.6. This is with long term debt/equity at 0.55, and total debt/equity at 0.6.

In terms of margins, Stantec Inc. has a gross margin of 54.00%, an operating margin of 6.60% and a profit margin of 4.90%.Payout ratio for Stantec Inc. is 32.90%. Return on assets come to 4.60% with return on investment coming to 10.50%.

Insider ownership for Stantec Inc., is at 3.30% and institutional ownership comes to 79.70%. Outstanding shares are at 114.35. While shares float is 112.96. The float short is currently 0.15%, and short ratio is 8.39.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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