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Stantec (TSX:STN) has secured a five-year contract with Jacobs Solutions to help Greater Western Water plan and deliver water and sewer infrastructure in Melbourne, Australia, focusing on long-term reliability and resilience.
See our latest analysis for Stantec.
Stantec's recent contract wins in Australia and the U.S. come as the stock trades at CA$101.09, with the share price down 23.46% year to date and the one year total shareholder return down 29.73%. However, the five year total shareholder return of 97.02% points to stronger longer term momentum.
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With Stantec shares down sharply over the past year and trading at an apparent discount to some valuation estimates, the key question is whether current projects justify a re-rating or if the market already reflects future growth.
Most Popular Narrative: 31.9% Undervalued
Stantec's widely followed narrative points to a fair value of roughly CA$148.55, compared with the current CA$101.09 share price, anchoring a case built on earnings and margin assumptions.
Demand for infrastructure upgrades, water/wastewater treatment, energy transition, and climate adaptation projects remains exceptionally strong globally, with double-digit organic growth and a $7.9 billion backlog, positioning the company for sustained revenue expansion in line with multi-decade trends toward urbanization and aging infrastructure.
Read the complete narrative. Read the complete narrative.
Want to see what is driving that gap between price and fair value? The core story leans on steady revenue growth, rising margins and a future earnings multiple that assumes the market keeps rewarding this cash generation profile.
Result: Fair Value of CA$148.55 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that upside case depends on continued government infrastructure funding and smooth integration of recent acquisitions, both of which could disappoint and unsettle the current valuation story.
Find out about the key risks to this Stantec narrative.
Next Steps
With both risks and rewards in play, does the current story around Stantec feel balanced to you, or skewed one way? If you want to move quickly and shape your own view based on the full picture, start by weighing the 5 key rewards and 1 important warning sign
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include STN.TO .
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