AtkinsRealis Group (ATRL-TO)
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Apr 10, 2025, 12:00 amThis summary was created by AI, based on 8 opinions in the last 12 months.
AtkinsRealis Group (ATRL-T) has garnered mixed reviews from industry experts, showcasing both positive and cautious perspectives on its prospects. The company has pivoted towards a more sustainable growth model, with nuclear energy now comprising about 20% of its business and growing at an impressive 30% annually. While some analysts highlight the compelling valuation and robust earnings potential tied to its engineering services expansion, others express skepticism regarding its overall valuation and recommend alternative investment options. The firm is recognized for its strong presence in Canadian infrastructure, with substantial opportunities for international expansion. In light of changing market dynamics and a favorable environment for engineering services driven by various economic factors, the outlook is cautiously optimistic, though analysts suggest a wait-and-see approach for potential investors.
Trades close to WSP multiple of ~40x PE. That's one of the reasons she doesn't own it. Likes exposure to nuclear and to the public sector. Doesn't like dividend yield of less than 1%. International exposure brings risk.
She'd prefer to own (and does) ARE, with a higher dividend and more reasonable valuation.
They have a great opportunity on the nuclear energy side. Nuclear energy is needed as a stable energy source to power data base centres. As the nuclear component develops they are making decent money in the interim with its engineering services business. Has an internal free cash flow of 7.4%, much greater than the average and almost 7 times greater than the present TSX stock market. Also has an attractive PEG ratio. There was a 10% earnings surprise.
Buy 12 Hold 1 Sell 1
The former SNC Lavalin which had a checkered history. He likes professional services companies, because there will always be a demand for them. The problem is that occasionally a CEO will take a fixed-price contract that could make a nice margin or lose 5-years' profits. ATRL has been through that. He likes where ATRL is heading. The market isn't afraid of its near-30x PE. Strong growth with 9% margins, which lag its peers like Stantec, but there's little margin of safety here.
Rebranded. Becoming a very large, global player in engineering and project management. Asset light. Not in construction anymore. Reasonable margins. Huge backlog. About $10B in revenue a year. Big infrastructure spending has to happen globally. Interest rates coming down is a good thing. Expertise in nuclear. Yield is 0.12%.
(Analysts’ price target is $91.23)When it comes to Canadian infrastructure investment, there are some good companies out there and already trading at attractive multiples. And that's before accounting for any additional investments. This company has really transformed. Nuclear is ~20% of its business and growing at 30% annualized.
Canadian engineering firms have a strong business model in Canada, and they're continuing to expand outside Canada; lots of opportunities to do well. He holds STN instead. Buy a bit now. If price goes up, you'll be happy you got in earlier. If price goes down, buy a bit more to average down.
Big fan of the space, especially with the incoming US administration. Changed its business model, now focused on higher quality and the nuclear resurgence. Nuclear represents about 20% of their business and those margins are very high. Can unlock value by monetizing Hwy 407. Attractive valuation compared to peers.
Fixed-price contracts were an overhang. Now more into engineering services. His favourite thing is expansion on the nuclear side, and they're involved internationally. This will sustain growth going forward. Low valuation. Balance sheet's better, as is earnings generation. Yield is 0.1%.
(Analysts’ price target is $80.85)
AtkinsRealis Group(ATRL-TO) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 7
Neutral - Hold Signals / Votes : 1
Bearish - Sell Signals / Votes : 5
Total Signals / Votes : 13
AtkinsRealis Group(ATRL-TO) Frequently Asked Questions
What is AtkinsRealis Group stock symbol?
AtkinsRealis Group is a OTC stock, trading under the symbol ATRL-TO on the (). It is usually referred to as or ATRL-TO
Is AtkinsRealis Group a buy or a sell?
In the last year, 13 stock analysts published opinions about ATRL-TO. 7 analysts recommended to BUY the stock. 5 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for AtkinsRealis Group.
Is AtkinsRealis Group a good investment or a top pick?
AtkinsRealis Group was recommended as a Top Pick by on . Read the latest stock experts ratings for AtkinsRealis Group.
Why is AtkinsRealis Group stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is AtkinsRealis Group worth watching?
13 stock analysts on Stockchase covered AtkinsRealis Group In the last year. It is a trending stock that is worth watching.
What is AtkinsRealis Group stock price?
On , AtkinsRealis Group (ATRL-TO) stock closed at a price of $.
Is still growth ahead. Good that they sold the 407 ETR to pay down their debt. Are a pure engineering company, no longer saddled with fixed contracts they'd have to pay for cost overruns on projects. Margins have risen. Are well positioned for new demand for nuclear energy. Is no longer trading at discount to peers, but growth will continue.