TSX:ATRLConstruction
AtkinsRéalis Group (TSX:ATRL) Stock Looks Cheap But Earnings Quality Clouds Upside
AtkinsRéalis Group walked into this earnings print with a stock that has gone almost nowhere over the past month and quarter, yet it now trades on a trailing P/E of 5.3x, well below construction peers. The market reaction around CA$88 per share looks cautious compared with what the headline numbers show.
The real story is profit quality. Reported net margin over the past year sits at 23.2% and earnings growth is very large, but both are heavily shaped by a one off gain of about CA$2.4b...