STN Stantec Inc

Exchange

NYSE

Sector

Consumer Services

Industry

Military/Government/Technical

Market Cap.

1.979B

Shrinking Cash Return on Invested Capital over the past 5 years

STN has less efficiently invested its financial resources in buildings, projects, and equipment, resulting in increasingly weaker returns. Look at its Annual Reports to determine whether this decrease has been caused by one-time events or a more general decrease in investment returns.

STN has created $11.28 of cash for every $100 invested.

Figures in CAD. Fiscal year ends in December

	2007	2008	2009	2010	2011
Free Cash Flow	60.21M	124.39M	82.61M	89.06M	88.80M
divided by
Invested Capital	566.69M	733.51M	825.04M	929.44M	963.73M
Cash ROIC	10.62%	16.96%	10.01%	9.58%	9.21%

Poor Return on Equity over the past 5 years

STN has shown an inability to deliver strong results for shareholders. This could be due to poor management, STN operating in a highly competitive industry, or having a weak business in general.

STN has only generated $9.65 of Earnings for every $100 of Shareholders' Equity.

Figures in CAD. Fiscal year ends in December

	2007	2008	2009	2010	2011
Net Income	69.28M	29.02M	55.94M	93.60M	12.66M
divided by
Stockholders' Equity	442.70M	538.98M	547.39M	625.48M	627.05M
Return on Equity	15.65%	5.38%	10.22%	14.96%	2.02%

Excellent Business Performance over the past 10 years

STN has been able to maintain profitability in good times and bad. This could mean STN has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

STN has created positive free cash flow for 9 or more of the past 10 years.

Figures in CAD. Fiscal year ends in December

	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Free Cash Flow	18.51M	-11.82M	59.86M	40.31M	74.47M	60.21M	124.39M	82.61M	89.06M	88.80M