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TSE:ATRL

SNC-Lavalin Group Inc. (ATRL.TO)

86.79
+5.25 (6.44%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
252 watching
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company reported earnings much better than expected. EPS was particularly better at 56% ahead of estimates. Good growth year over year according to the report. A very solid showing considering the company typically misses. Unlock Premium - Try 5i Free

DON'T BUY

In the news a lot, and you never know what's going to come up from the past. Better E&C companies out there, such as WSP Global. It trades at a premium, but there's a reason for that. Better track record, recent acquisition will lead to growth opportunities, leveraged to environmental services that will be a tailwind for the next decade.

SHORT
One of those stressed companies in terms of earnings quality. They have shorted it. The short positions have had a shock to the system on Monday with a rush to cover cyclical recovery. Price momentum is mediocre and valuation is not there. They have negative return on equity and no real yield. Still in the penalty box.
DON'T BUY

Could make a profit, but in middle of massive reorganization. Too much risk and too little dividend. Aecon has grown backlog significantly, continues to beat on results, and yields nearly 5%. Aecon will benefit from any increase in infrastructure spending.

BUY
It is one of his favourite stocks right now. Some of its attributes will shine in 2021. The 407 is used a lot more again post-COVID shut down. He is not worried about their debt.
COMMENT
With today's stimulus announcement, these kinds of companies will see continued demand for their services. They have baggage, but there will be projects and spending that will help these types of companies. Long term, there is a tail wind.
BUY
It was at the center of the government controversy. He thinks people are beginning to put this behind them although it is not recovered. People are looking at projects coming up rather than ones that are behind them. It appears that investors are starting to look forward rather than back. It takes a while for changes to start to resonate in the market. He would look for this one that has been beaten up and is a value trap at present, when it is starting to recover.
DON'T BUY
Infrastructure will be build over the next 3-5 years. He has a model price of $18.50 -- about 14% lower than market. He is focusing on US asset plays.
WAIT
One of the largest infrastructure companies, world-wide. The next round of support programs for the economy is really going to come back infrastructure. There is still some overhang from previous court battles.
DON'T BUY
It has had a wide ride over the last few years. They got away from the corruption charges and they are settled. They sold down their best asset to shore up their balance sheet. He would prefer another owner of the 407 now.
DON'T BUY
It has turned the corner or bounced to some extent. There is still some cleaning up to do. He would wait for a couple of good quarters.
BUY
He bought in the last 3-4 months as they settled some of the legal issues they had. Management has been doing a good job of cleaning house. 12 months from now they will be out of the higher risk contract construction projects. It is really under priced. There will be volatility over the next 4 quarters.
DON'T BUY
They had a nice bounce recently as their legal issues have lifted. Going forward, it'll be based on their fundamentals and new businesses they acquire. She doesn't know any construction stocks now. She wants to see their outlook and plan for future contracts before considering this.
DON'T BUY
Doesn't qualify as a quality stock for him. True, it's recovered strongly lately after it was punished last year. It's hard to predict their earnings, so he's not comfortable owning this for a long term.
BUY
They have been rebounding from the disaster of their fiascos. With the asset base and the write-down's, people believe it can get into the $35 range. He thinks it will rebound as political news is behind it.
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