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) | 28.11 | 22.91 | 15.12 |
Price/Book Value | 3.09 | 6.38 | 3.60 |
Price/Sales | 1.13 | 1.27 | 0.40 |
Price/Cash Flow | 38.65 | 24.90 | 19.22 |
|
Metric
|
ATRL
|
KBR
|
FLR
|
|---|---|---|---|
Quick Ratio | 0.80 | 0.95 | 1.49 |
Current Ratio | 0.85 | 1.05 | 1.60 |
Interest Coverage | 2.73 | −0.44 | 2.45 |
|
Metric
|
ATRL
|
KBR
|
FLR
|
|---|---|---|---|
Return on Assets (Normalized) | 3.45% | 6.20% | 6.87% |
Return on Equity (Normalized) | 11.40% | 23.09% | 25.86% |
Return on Invested Capital (Normalized) | 8.61% | 12.66% | 10.83% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
VCISY
| Vinci SA ADR | — | Pkkfhz | $67.9 Bil | |
VCISF
| Vinci SA | — | Zwmqjg | $67.9 Bil | |
LTOUF
| Larsen & Toubro Ltd DR | — | Htlr | $59.5 Bil | |
PWR
| Quanta Services Inc | Mktxsclyb | Cvgr | $38.3 Bil | |
CRWOF
| China Railway Group Ltd Class H | — | Dmlhb | $22.0 Bil | |
J
| Jacobs Solutions Inc | Gvmkjxnyc | Fclzb | $18.2 Bil | |
ACM
| AECOM | Fdjkhfzjp | Mhnhn | $12.8 Bil | |
KBR
| KBR Inc | Ckcvvdzpt | Vjk | $8.8 Bil | |
FLR
| Fluor Corp | Wptg | Hpzz | $7.0 Bil | |
MTZ
| MasTec Inc | Kjhqwgmz | Scn | $6.9 Bil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/da3ef1a3-642c-4051-97c6-0cbdebded4c6.jpg)