I am continuing my review this stock (TSX-STN) today, as I had not reviewed it since I received the annual report for the end of December 2008. My spreadsheet has also been updated for the March 2009 quarter. As this is a non dividend paying stock, I only bought a small amount of it in August of 2008. To date I have lost about 2.5% per year on it. However, I am not giving up on this stock and I will maintain my position it.
When I look at Insider Buying and Insider Selling on this stock, I find there is more Insider Selling. However, this concerns a very small part of shares outstanding. If you look at Insider ownership, I find that over the past year the CEO, CFO and other officers have increases they holdings, but directors have decreased theirs. So in this connection, there is no strong signal at all.
The current P/E at 13is lower than the 5 year average of 26 and lower than the 5 year low 17. Considering this is a growth stock, a P/E of 13 is low. The current stock price is higher Graham Price. However, the current price is closer to the Graham price than it has been over the last 10 years. There is only a 12% difference with the average 5 year difference over 75%.
Whereas the 2008 Price/Book Value ratio is higher than the 10 years average, this ratio of March 2009 is lower than the 10 year average. When you look at the Price/Sales Ratio, I find that the current ratio is lower than the 5 year average, but very slightly higher than the 10 year average. All these ratios point to a somewhat good current price.
When looking for analyst recommendations, I find Strong Buy , Buy and Hold. The consensus would be a Buy rating. (See my site for information on analyst ratings.) Everyone seems to feel that this is a great company, with a great future. The reason for the Hold ratings as I can see it is that it is felt that this stock is fairly valued at the moment and has not got much room for growth in stock price over the next year. However, not everyone agrees with this, considering the number of Strong Buys and Buys on this stock.
As I see this stock, it is a great growth stock that is at a good price. I do not think the price is a bargain, but I do think it is reasonable. I intend to hold on to what I have.
Stantec Inc is a profitable Construction & Engineering company that trades on the TSX. It provides professional services in planning, engineering, architecture, interior design, landscape architecture, surveying and geomatics, environmental sciences project management and project economics for clients, from initial concept and financial feasibility, to project completion and beyond. They work in North America, the Caribbean, United Kingdom, Australia, and New Zealand. Its web site is www.stantec.com. See my spreadsheet at www.spbrunner.com/stocks/stn.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
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