AtkinsRéalis (TSX:ATRL): Reassessing Valuation After Recent Pullback and Strong Multi‑Year Share Price Gains

AtkinsRéalis Group (TSX:ATRL) has had a choppy stretch lately, with the stock slipping over the past 3 months but still sitting on strong multiyear gains. That mix tends to reveal interesting valuation angles.

See our latest analysis for AtkinsRéalis Group.

After a strong run over the past few years, momentum has cooled recently, with the 90 day share price return down 15.86 percent even as the 1 year total shareholder return sits at a robust 17.79 percent. This suggests investors are reassessing near term risks rather than abandoning the longer term story.

If AtkinsRéalis has piqued your interest in infrastructure and engineering plays, it could be worth broadening your watchlist with aerospace and defense stocks as another way to uncover capital goods opportunities.

With shares still up strongly over three and five years but trading at a notable discount to analyst targets and intrinsic value estimates, is AtkinsRéalis now a rare value entry point, or is the market sensibly pricing in future growth?

Most Popular Narrative Narrative: 23.6% Undervalued

Compared with the last close at CA$87.46, the most followed narrative sees fair value closer to CA$114.53, implying meaningful upside if its assumptions play out.

Record backlog growth, especially in Nuclear (backlog up 223% YoY to $5.6B), reflects surging demand as global energy transition and decarbonization accelerate. This large contracted pipeline is likely to drive sustained revenue and EBITDA growth for several years.

Read the complete narrative.

Want to see how steady growth, shrinking margins and a richer earnings multiple still add up to upside potential? The narrative spells out the math, step by step.

Result: Fair Value of $114.53 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent project delays and heavy reliance on large nuclear contracts could quickly derail growth expectations, pressuring both margins and the valuation case.

Find out about the key risks to this AtkinsRéalis Group narrative.

Build Your Own AtkinsRéalis Group Narrative

If you see things differently or want to dive into the numbers yourself, you can build a personalized view of AtkinsRéalis in minutes: Do it your way.

A great starting point for your AtkinsRéalis Group research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This 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.

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