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Stockchase InsightsSNC-Lavalin Group Inc.ATRL.TOBUY ON WEAKNESSSep 01, 2023

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Many companies in the nuclear space are either government entities or divisions of larger companies. But for E&P companies, SNC has significant industry experience and it has won several contracts in various countries this year. As an indirect play on the sector, it works, and it has a big backlog. It has not been our favourite company, for various growth reasons and scandals, but things have improved immensely and very strong earnings growth is now expected. It is not 'cheap' at 27X earnings but for a nuclear-focused investor we think it has some attractions.
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$43.23

Stock price when the opinion was issued

$86.54

As of Jul 24, 2026. Market Open.

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TOP PICK

Currently in "up trend". Consolidating higher. Large swings good for investors. Will continue to own, and buy more.

DON'T BUY

Well diversified geographically in Canada and beyond and in end markets. Strong balance sheet, but profits are below the market average. (Will change company name and ticker.)

COMMENT

It has done very well and is well poised for the next five years. It has changed its name and has a new ticker symbol.

COMMENT

Have they atoned for their bribery sins and reformed? It's a different company now, out of the energy business and run by different people. He needs to look at this closely. It nearly didn't survive its corporate misconduct.

HOLD

Not a bad business, but bad news keeps turning up. Closed the valuation gap. Likes the engineering/construction space quite a bit. He favours WSP in his core portfolio. Valuation stretched, be cautious.

DON'T BUY

Not as much flexibility in contracts.

BUY ON WEAKNESS

Does not own shares.
Very good job of getting out of turn key contracts that have been burdensome.
Expecting higher profits going forward.
Trading at discount to peers.

DON'T BUY

Must distinguish between construction companies (low margin, project risk) and consulting businesses. More of a construction company. Past scandals. Trying to pivot towards consulting. He prefers WSP and STN.

Unspecified

It is showing promise by getting rid of the legacy contracts with fixed prices and concentrating on the engineering side of the business. This will make it better for the long term.

DON'T BUY

Margins not as robust as some peers. Stock's done fairly well in last 2 years. He prefers other names in the group, though they all look expensive right now. He'd look at WSP or STN. Owns ARE, but that's a different kind of story.

DON'T BUY

Has owned in the past, but not currently.
Currently over bought given share price.
Wait for shares to fall before buying.
Fundamentally does not score well.
Revenue and earnings growth not high enough.
Debt levels too high.
Q4 loss a negative sign.

DON'T BUY

Lots of volatility and business controversial.
Scandalous business.
Not a good investment for average investor.
Hard to value business.

DON'T BUY

Plagued by fixed-price contracts. Big cost overruns. Not booking these types of contracts going forward, but they have to work through them. She owns WSP instead.

PAST TOP PICK

(A Top Pick Jul 07/21, Down 25%) He sold and moved on. Things were different a year ago. Its turnaround has been stalled. Events are weighing on profits.

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