SNC-Lavalin Group Inc.
SNC-Lavalin Group Inc. Fundamental Analysis
SNC-Lavalin Group Inc. (SNCAF) shows strong financial fundamentals with a PE ratio of 5.84, profit margin of 25.38%, and ROE of 51.29%. The company generates $10.2B in annual revenue with strong year-over-year growth of 12.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SNCAF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSNCAF demonstrates superior asset utilization.
Valuation Score
ModerateSNCAF shows balanced valuation metrics.
Growth Score
ModerateSNCAF shows steady but slowing expansion.
Financial Health Score
ExcellentSNCAF maintains a strong and stable balance sheet.
Profitability Score
ExcellentSNCAF achieves industry-leading margins.
Key Financial Metrics
Is SNCAF Expensive or Cheap?
P/E Ratio
SNCAF trades at 5.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SNCAF's PEG of 2.24 indicates potential overvaluation.
Price to Book
The market values SNC-Lavalin Group Inc. at 2.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.27 times EBITDA. This is generally considered low.
How Well Does SNCAF Make Money?
Net Profit Margin
For every $100 in sales, SNC-Lavalin Group Inc. keeps $25.38 as profit after all expenses.
Operating Margin
Core operations generate 6.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $51.29 in profit for every $100 of shareholder equity.
ROA
SNC-Lavalin Group Inc. generates $20.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SNC-Lavalin Group Inc. generates limited operating cash flow of $426.26M, signaling weaker underlying cash strength.
Free Cash Flow
SNC-Lavalin Group Inc. generates weak or negative free cash flow of $262.41M, restricting financial flexibility.
FCF Per Share
Each share generates $1.60 in free cash annually.
FCF Yield
SNCAF converts 1.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.51
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SNCAF Stacks Against Its Sector Peers
| Metric | SNCAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.84 | 25.83 | Better (Cheaper) |
| ROE | 51.29% | 1291.00% | Weak |
| Net Margin | 25.38% | -43845.00% (disorted) | Strong |
| Debt/Equity | 0.31 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.08 | 10.66 | Neutral |
| ROA | 20.67% | -1540652.00% (disorted) | Strong |
SNCAF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SNC-Lavalin Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.32%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-13.32%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
248.32%
Industry Style: Cyclical, Value, Infrastructure
High Growth