Is It Time To Consider Buying AtkinsRéalis Group Inc. (TSE:ATRL)?

Let's talk about the popular AtkinsRéalis Group Inc. (TSE:ATRL). The company's shares had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of CA$91.00 to CA$99.50. However, is this the true valuation level of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at AtkinsRéalis Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What Is AtkinsRéalis Group Worth?

Great news for investors – AtkinsRéalis Group is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is CA$128.40, but it is currently trading at CA$93.72 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, AtkinsRéalis Group’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

See our latest analysis for AtkinsRéalis Group

Can we expect growth from AtkinsRéalis Group?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for AtkinsRéalis Group, at least in the near future.

What This Means For You

Are you a shareholder? Although ATRL is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to ATRL, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on ATRL for a while, but hesitant on making the leap, we recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you'd like to know more about AtkinsRéalis Group as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 2 warning signs for AtkinsRéalis Group and we think they deserve your attention.

If you are no longer interested in AtkinsRéalis Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.