AtkinsRealis (formerly SNC-Lavalin) posted solid first-quarter results, as diluted EPS increased to CAD 0.26 from CAD 0.16 in the prior-year period. We’ve raised our fair value estimate to CAD 49.50 from CAD 46.50, which reflects our higher near-term revenue growth forecast and time value of money.
We think that AtkinsRealis’ nuclear segment has carved a narrow moat based on intangible assets and switching costs. The segment consistently delivers midteens operating margins and has solid growth prospects.
Execution issues have resulted in significant charges on lump-sum turnkey projects.
|
Metric
|
ATRL
|
KBR
|
J
|
|---|---|---|---|
Price/Earnings (Normalized) | 26.28 | 23.04 | 17.96 |
Price/Book Value | 2.86 | 6.28 | 2.60 |
Price/Sales | 1.06 | 1.25 | 1.03 |
Price/Cash Flow | 31.00 | 24.20 | 19.06 |
|
Metric
|
ATRL
|
KBR
|
J
|
|---|---|---|---|
Quick Ratio | 0.86 | 0.89 | 1.12 |
Current Ratio | 0.92 | 1.10 | 1.17 |
Interest Coverage | 2.88 | −0.28 | 5.81 |
|
Metric
|
ATRL
|
KBR
|
J
|
|---|---|---|---|
Return on Assets (Normalized) | 3.64% | −2.37% | 6.52% |
Return on Equity (Normalized) | 11.96% | −9.10% | 14.80% |
Return on Invested Capital (Normalized) | 8.89% | −1.23% | 9.80% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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