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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
0
DON'T BUY
Market cap is valuation that people put on companies, based on future profits and cash flow. SNC does mostly "cost plus" contracts, so margin is built in. Exposed to Middle East, not a favourable place. Some issues with CRA, and how they got contracts. He'd be wary. If you think the economies are slowing, there may be better opportunities to buy companies like this.
PAST TOP PICK
(A Top Pick Nov 02/17, Down 19%) Asset value of over $70/share and the 407 highway is $32 of that. If they can resolve their latest corruption problem, it will boost the stock $6-7. Be patient and you will do fine with this.
PAST TOP PICK
(A Top Pick Sep 26/18, Down 16%) This is his third shot at this trade. There was a pretty sweet trading range. But now it's broken down. He's looking for an oversold bounce, and then they'll decide if it can break back above or if they need to ditch it. New investors may want to wait.
PAST TOP PICK
(A Top Pick Dec 28/17, Down 18%) Here is a company with the fundamentals correct but the market doesn't care. First there was the unfortunate tweet about Saudi Arabia. Second, there was the ethics issue from many years ago. The federal government is not letting them off easily on this one. Both things have caused the stock to tank even though it has nothing to do with current management, growth and so on. He is sticking with it. Ultimately this will go away.
PAST TOP PICK
(A Top Pick Aug 16/18, Down 13%) It's a play on global infrastructure (demand and spending), which he thinks any portfolio should have some exposure. How fast will North America ramp up infrastructure? Investors have been frustrated by how slow it's become by, say, Trump. Also, Saudi Arabia events have pressured SNC. He still likes SNC. It's a long-term play.
DON'T BUY
Considering current issues with Saudi Arabia and legal headwinds The analysts have knocked down their earnings forecasts. If this reached its FMV it would hit $64, a huge rebound. Good technical support at $47-49. How serious is this Saudi Arabia issue, and would a Canadian company get punished operating there? He doesn't buy companies with political problems. That said, SNC is really cheap now and you can roll the dice, if you wish.
COMMENT

He's playing infrastructure through WSP instead who are locking their debt to earnings, yet grow by acquiring.

BUY

It trades below it break up intrinsic value. As a Quebec based company it will be too important to fail in political terms.

PAST TOP PICK

(A Top Pick Aug 11/17, Up 2%) Hasn’t done much, though a good company. With gas line approval in BC, should be lots of work. Sideways action, dividend is indifferent. Need some excitement to get investors interested. Not a bad hold.

COMMENT

One of the best infrastructure plays, despite past troubles (which he hopes are behind them). Has a choppy chart, but long-term this looks good due to new management, creating a fresh slate.

TOP PICK

He's traded this three times. because it's been a consistent range of $45-50 since mid-2015. (2.2% dividend, Analysts' price target: $70.73)

COMMENT

He bought it when it was dealing with its ethical issues. The stock has not recovered as well as he expected. He is still waiting for the US and Canadian governments to come through with their infrastructure spending, which would provide SNC with great business. This continues to be a tomorrow stock that he keeps waiting for.

COMMENT

The construction companies are difficult for investors. You can't tell how much money they'll make on a contract. Suppose they underbid or hit execution problems or a customer stiffs them? It's okay to own one of them in a portfolio, but no more. SNC is okay--has worldwide exposure but also carries geopolitical risk. It's riskier than most stocks he owns.

PAST TOP PICK

(A Top Pick May 17/18, Down 3%) Would still buy at this point. Getting penalized because of Saudi-Canadian issues. Geopolitical issues let you buy good companies at a good price.

TOP PICK

Geopolitical risk is priced in. Good backlog of opportunities. Growth coming in. EBITDA could be strong going forward. Yield is 2%. (Analysts’ price target is $70.54.)

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