Andrew Pink AtkinsRealis Group ATRL-TO TOP PICK Apr 30, 2025

Good price to enter right now. Would prefer WSP over this company. Quality earnings, especially after recent changes. 

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.

Hard business to value. Not a good option for investors. Better for investors to avoid. 

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.

Not the part of the segment you want to be in.

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.

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

Sold recently on the great run. New CEO has done a good job cleaning up past scandals. Good price on recent sale of stake in Hwy 407. Benefits from nuclear buildout. Not super-expensive, but not cheap.

Still owns, but lightened up recently. Huge move on engineering for global nuclear expansion. Good story, but big run.