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
|
J
|
|---|---|---|---|
Price/Earnings (Normalized) | 28.45 | 23.35 | 18.27 |
Price/Book Value | 3.13 | 6.36 | 2.64 |
Price/Sales | 1.15 | 1.27 | 1.05 |
Price/Cash Flow | 39.11 | 24.52 | 19.40 |
|
Metric
|
ATRL
|
KBR
|
J
|
|---|---|---|---|
Quick Ratio | 0.80 | 0.89 | 1.12 |
Current Ratio | 0.85 | 1.10 | 1.17 |
Interest Coverage | 2.73 | −0.28 | 5.81 |
|
Metric
|
ATRL
|
KBR
|
J
|
|---|---|---|---|
Return on Assets (Normalized) | 3.45% | −2.37% | 6.52% |
Return on Equity (Normalized) | 11.40% | −9.10% | 14.80% |
Return on Invested Capital (Normalized) | 8.61% | −1.23% | 9.80% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
VCISY
| Vinci SA ADR | — | Jjhkdm | $70.9 Bil | |
VCISF
| Vinci SA | — | Yvcqvp | $70.9 Bil | |
LTOUF
| Larsen & Toubro Ltd DR | — | Bptw | $53.9 Bil | |
PWR
| Quanta Services Inc | Khzszydf | Zysy | $39.7 Bil | |
CRWOF
| China Railway Group Ltd Class H | — | Nvxq | $20.9 Bil | |
J
| Jacobs Solutions Inc | Rqccrvwc | Nryc | $17.5 Bil | |
ACM
| AECOM | Kvrcqshxp | Llf | $12.6 Bil | |
KBR
| KBR Inc | Nndqzrhf | Lwjv | $8.9 Bil | |
MTZ
| MasTec Inc | Hrwjknq | Pgjjl | $8.4 Bil | |
FLR
| Fluor Corp | Fvjz | Hfvs | $6.7 Bil |
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