In 2022, AtkinsRealis (formerly SNC-Lavalin) reorganized its business into the following segments: engineering services, Linxon, nuclear, O&M, infrastructure LSTK projects, and capital. The first four are grouped together as SNCL Services.
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
|
FLR
|
|---|---|---|---|
Price/Earnings (Normalized) | 26.93 | 22.79 | 14.89 |
Price/Book Value | 2.96 | 6.21 | 3.54 |
Price/Sales | 1.08 | 1.24 | 0.40 |
Price/Cash Flow | 37.01 | 23.93 | 18.93 |
|
Metric
|
ATRL
|
KBR
|
FLR
|
|---|---|---|---|
Quick Ratio | 0.80 | 0.89 | 1.49 |
Current Ratio | 0.85 | 1.10 | 1.60 |
Interest Coverage | 2.73 | −0.28 | 2.45 |
|
Metric
|
ATRL
|
KBR
|
FLR
|
|---|---|---|---|
Return on Assets (Normalized) | 3.45% | −2.37% | 6.87% |
Return on Equity (Normalized) | 11.40% | −9.10% | 25.86% |
Return on Invested Capital (Normalized) | 8.61% | −1.23% | 10.83% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
VCISF
| Vinci SA | — | Qvzqhf | $67.2 Bil | |
VCISY
| Vinci SA ADR | — | Dsxtzz | $66.9 Bil | |
LTOUF
| Larsen & Toubro Ltd DR | — | Hrq | $59.2 Bil | |
PWR
| Quanta Services Inc | Tksyftsj | Cpms | $37.8 Bil | |
CRWOF
| China Railway Group Ltd Class H | — | Drj | $20.7 Bil | |
J
| Jacobs Solutions Inc | Vgkxndb | Bwqz | $18.0 Bil | |
ACM
| AECOM | Hqshxckd | Lgqb | $12.6 Bil | |
KBR
| KBR Inc | Wflxcpybg | Fzljx | $8.7 Bil | |
MTZ
| MasTec Inc | Cffwwtzcy | Lzvr | $7.0 Bil | |
FLR
| Fluor Corp | Tbgh | Yzjj | $6.9 Bil |
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