Latest news with #AtkinsRéalisGroup
Yahoo
23-05-2025
- Business
- Yahoo
We Like AtkinsRéalis Group's (TSE:ATRL) Earnings For More Than Just Statutory Profit
AtkinsRéalis Group Inc. (TSE:ATRL) announced a healthy earnings result recently, and the market rewarded it with a strong uplift in the stock price. According to our analysis of the report, the strong headline profit numbers are supported by strong earnings fundamentals. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Importantly, our data indicates that AtkinsRéalis Group's profit was reduced by CA$82m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect AtkinsRéalis Group to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from AtkinsRéalis Group's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that AtkinsRéalis Group's statutory profit actually understates its earnings potential! Better yet, its EPS are growing strongly, which is nice to see. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. While it's really important to consider how well a company's statutory earnings represent its true earnings power, it's also worth taking a look at what analysts are forecasting for the future. Luckily, you can check out what analysts are forecasting by clicking here. This note has only looked at a single factor that sheds light on the nature of AtkinsRéalis Group's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
23-05-2025
- Business
- Yahoo
We Like AtkinsRéalis Group's (TSE:ATRL) Earnings For More Than Just Statutory Profit
AtkinsRéalis Group Inc. (TSE:ATRL) announced a healthy earnings result recently, and the market rewarded it with a strong uplift in the stock price. According to our analysis of the report, the strong headline profit numbers are supported by strong earnings fundamentals. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Importantly, our data indicates that AtkinsRéalis Group's profit was reduced by CA$82m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect AtkinsRéalis Group to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from AtkinsRéalis Group's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that AtkinsRéalis Group's statutory profit actually understates its earnings potential! Better yet, its EPS are growing strongly, which is nice to see. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. While it's really important to consider how well a company's statutory earnings represent its true earnings power, it's also worth taking a look at what analysts are forecasting for the future. Luckily, you can check out what analysts are forecasting by clicking here. This note has only looked at a single factor that sheds light on the nature of AtkinsRéalis Group's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Market Online
16-05-2025
- Business
- The Market Online
AtkinsRéalis secures major contract to refurbish historic Isle-Maligne hydropower plant
AtkinsRéalis Group (TSX:ATRL) has been awarded a significant seven-year contract by Rio Tinto for the refurbishment of the Isle-Maligne hydropower plant in Alma, Québec Commissioned in 1926 as the world's largest hydropower facility at the time, the Isle-Maligne plant is set to undergo a comprehensive modernization to extend its operational life well into the future Under the terms of the agreement, AtkinsRéalis will deliver execution engineering, integrated procurement, and construction management services. AtkinsRéalis Group stock (TSX:ATRL) opened trading at C$84.30 AtkinsRéalis Group (TSX:ATRL) has been awarded a significant seven-year contract by Rio Tinto for the refurbishment of the Isle-Maligne hydropower plant in Alma, Québec. Commissioned in 1926 as the world's largest hydropower facility at the time, the Isle-Maligne plant is set to undergo a comprehensive modernization to extend its operational life well into the future. Under the terms of the agreement, AtkinsRéalis will deliver execution engineering, integrated procurement, and construction management services. 'We've specialized in executing large-scale hydropower projects for over a century and the life extension work on this historic hydropower plant will be guided by our commitment to sustainability and our purpose—to engineer a better future for our planet and its people,' AtkinsRéalis' president and CEO, Ian Edwards said in a news release. 'Our long-standing partnership with Rio Tinto is based on effective collaboration and our proven ability to work and deliver on complex, high-impact projects.' Stéphanie Vaillancourt, AtkinsRéalis' Canadian president added. 'Collaboration, excellence, resilience and health-safety will be the driving forces behind our work on this project. These principles are essential for empowering the surrounding communities and advancing the development of a low-carbon economy.' The refurbishment will involve replacing eight of the plant's 12 turbine-alternator groups and upgrading associated water passages. Additionally, the project will include architectural, structural, electrical, and mechanical enhancements across the balance of the plant. AtkinsRéalis will leverage its cross-regional teams to execute the project, drawing on its extensive experience in hydropower modernization. The company has previously led major refurbishment efforts including Rio Tinto's Shipshaw Expansion Project, Ontario Power Generation's Calabogie Redevelopment, and BC Hydro's John Hart Generating Station Replacement. The Isle-Maligne project is expected to contribute significantly to the region's energy resilience and economic development. AtkinsRéalis provides engineering and nuclear energy solutions across the world, including consulting, advisory and environmental services, intelligent networks and cybersecurity, design, procurement, project and construction management, operations and maintenance, decommissioning and capital. AtkinsRéalis Group stock (TSX:ATRL) opened 0.09 per cent lower at C$84.30 but has risen 62.26 per cent since this time last year. Join the discussion: Find out what everybody's saying about AtkinsRéalis on the AtkinsRéalis Group Inc. Bullboard and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
Yahoo
25-04-2025
- Business
- Yahoo
Is AtkinsRéalis Group Inc. (TSE:ATRL) Trading At A 40% Discount?
AtkinsRéalis Group's estimated fair value is CA$113 based on 2 Stage Free Cash Flow to Equity AtkinsRéalis Group's CA$68.45 share price signals that it might be 40% undervalued Analyst price target for ATRL is CA$91.29 which is 19% below our fair value estimate In this article we are going to estimate the intrinsic value of AtkinsRéalis Group Inc. (TSE:ATRL) by taking the forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (CA$, Millions) CA$55.2m CA$491.6m CA$666.0m CA$800.1m CA$918.5m CA$1.02b CA$1.11b CA$1.18b CA$1.24b CA$1.30b Growth Rate Estimate Source Analyst x3 Analyst x4 Analyst x2 Est @ 20.13% Est @ 14.80% Est @ 11.07% Est @ 8.46% Est @ 6.63% Est @ 5.35% Est @ 4.45% Present Value (CA$, Millions) Discounted @ 7.1% CA$51.5 CA$429 CA$542 CA$608 CA$652 CA$676 CA$685 CA$682 CA$671 CA$654 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = CA$5.7b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.4%. We discount the terminal cash flows to today's value at a cost of equity of 7.1%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = CA$1.3b× (1 + 2.4%) ÷ (7.1%– 2.4%) = CA$28b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CA$28b÷ ( 1 + 7.1%)10= CA$14b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is CA$20b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of CA$68.5, the company appears quite undervalued at a 40% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at AtkinsRéalis Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.1%, which is based on a levered beta of 1.092. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for AtkinsRéalis Group Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Construction market. Opportunity Annual earnings are forecast to grow faster than the Canadian market. Trading below our estimate of fair value by more than 20%. Threat Revenue is forecast to grow slower than 20% per year. Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Why is the intrinsic value higher than the current share price? For AtkinsRéalis Group, we've put together three fundamental elements you should assess: Financial Health: Does ATRL have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does ATRL's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the TSX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
11-04-2025
- Business
- Yahoo
One AtkinsRéalis Group Insider Raised Stake By 3,794% In Previous Year
Viewing insider transactions for AtkinsRéalis Group Inc.'s (TSE:ATRL ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold. While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. In the last twelve months, the biggest single purchase by an insider was when President of United States Stephen Morriss bought CA$1.4m worth of shares at a price of CA$52.84 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$65.33. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction! See our latest analysis for AtkinsRéalis Group There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that AtkinsRéalis Group insiders own 0.3% of the company, worth about CA$41m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders. There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in AtkinsRéalis Group and we see no evidence to suggest they are worried about the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for AtkinsRéalis Group . Of course AtkinsRéalis Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
