While Stantec Inc. (TSE:STN) might not have the largest market cap around , it saw a decent share price growth of 15% on the TSX over the last few months. The company is now trading at yearly-high levels following the recent surge in its share price. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Stantec’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Stantec

Is Stantec Still Cheap?

According to our valuation model, Stantec seems to be fairly priced at around 0.002% below our intrinsic value, which means if you buy Stantec today, you’d be paying a reasonable price for it. And if you believe the company’s true value is CA$120.06, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Stantec has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Stantec generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Stantec's earnings over the next few years are expected to increase by 61%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? STN’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on STN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example - Stantec has 1 warning sign we think you should be aware of.