Validea’s pick of the week provides a detailed report on a company that scores well in the stock-screening service’s model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor has a distribution agreement with Validea.ca. Try it.
Edmonton-based consulting firm Stantec Inc. provides planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management and project economics services for infrastructure and facilities projects. It has a $2-billion market cap, more than 200 locations in North America and four locations internationally.
The Peter Lynch-based model has strong interest in it thanks to reasonable 17.0 P/E, which makes for 0.62 P/E-to-Growth ratio. It has grown EPS at a 28 per cent rate over long term (using average of the 3, 4, and 5 year EPS growth rates)
And the Warren Buffett-based model likes that Stantec has increased EPS by $1.96 over past decade while retaining $11.62 in earnings, making for a 16.9 per cent return on retained earnings. It has a 44.4 per cent return on capital.
The Benjamin Graham model likes that it has more net current assets ($274-million) than long-term debt ($255-million. It also has $3.95 in free cash flow per share.
Click here for a complete breakdown of Validea’s investing guru report.
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