AtkinsRealis Group Inc
Is it a good company at a reasonable price? My testing is saying that the stock price suggests that it is relatively expensive. However, if you like the P/GP Ratio test best, it is saying that the stock price is reasonable. They still have not increased the dividends so I would be cautious until they do. Analysts think this will have in 2028.
I do not own this stock of AtkinsRealis Group Inc (TSX-ATRL, OTC-SNCAF), but I used to when it was SNC-Lavalin Group. I sold my stock in SNC-Lavalin (TSX-SNC, OTC-SNCAF) in 2019. I had given up hope that there will be any sort of resolution for this company anytime soon. In 2019 the Investment Reporter has removed this stock from their Key Stock List and Issued a sell on the stock. Also in 2019 the largest shareholder and a shareholder for lots of Quebec companies of Caisse de Depot et Placement du Quebec seems to be losing patience with this stock also.
When I was updating my spreadsheet, I noticed that the EPS is really high because earnings include the disposal of a Capital Investment. That is why the Adjusted Earnings per Share (AEPS) is a better view of what the company is actually earning. You will know this company is doing well again when they increase their dividends. Last year, analysts thought that that would be in 2027, now they say 2028. People who bought this stock around 2010 have done poorly with total return around 3.5%.
If you had invested in this company in December 2015, for $1,028.00 you would have bought 25 shares at $41.12 per share. In December 2025, after 10 years you would have received $100 in dividends. The stock would be worth $2,215.00. Your total return would have been $2,315.00. This would be a total return of 8.85% per year with 7.98% from capital gain and 0.87% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $41.12 | $1,028.00 | 25 | 10 | $100.00 | $2,215.00 | $2,315.00 |
The current dividend yield is low with dividend growth non-existent. The dividends are low (below 2%) at just 0.09%. The 5, 10 and historical are low at 0.23%, 0.30% and 1.38%. Dividend yields have always been low and they have seldom reached 2%. Dividends were decreased in 2019 and they have not been raised since. The analysts think there will be an increase in 2028, but last years they thought that dividends would be raised in 2027.
The Dividend Payout Ratios (DPR) are very good. The DPR for 2025 for Earnings per Share (EPS) is good at 0.52% with 5 year coverage at 2%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 2.38% with 5 year coverage at 4.87%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 1.48% with 5 year coverage at 2.90%. The DPR for 2025 for Free Cash Flow (FCF) is good at 2.89% with 5 year coverage at 6.34%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 0.52% | 2.07% |
| AEPS | 2.38% | 4.87% |
| CFPS | 1.48% | 2.90% |
| FCF | 2.89% | 6.34% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.03 and currently at 0.03. The Liquidity Ratio for 2025 is low at 1.08 and 1.08 currently. If you added in Cash Flow after dividends, the ratios are still too low at 1.17 and currently at 1.17. I like to see this ratio at 1.50 or higher. The Debt Ratio for 2025 is good at 1.68 and 1.68 currently. The Leverage and Debt/Equity Ratios for 2025 are fine at 2.25 and 1.25 and currently at 2.25 and 1.25.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.03 | 0.03 |
| Intang/GW | 0.29 | 0.27 |
| Liquidity | 1.08 | 1.08 |
| Liq. + CF | 1.17 | 1.17 |
| Liq. +CF +D | 1.25 | 1.26 |
| Debt Ratio | 1.80 | 1.80 |
| Leverage | 2.25 | 2.25 |
| D/E Ratio | 1.25 | 1.25 |
The Total Return per year is shown below for years of 5 to 36 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 0.00% | 32.66% | 32.46% | 0.20% |
| 2015 | 10 | -22.32% | 8.85% | 7.98% | 0.87% |
| 2010 | 15 | -13.30% | 3.54% | 2.66% | 0.88% |
| 2005 | 20 | -5.14% | 7.87% | 6.44% | 1.43% |
| 2000 | 25 | -0.16% | 15.54% | 12.51% | 3.02% |
| 1995 | 30 | 1.81% | 14.62% | 12.02% | 2.61% |
| 1990 | 35 | 2.17% | 14.92% | 12.36% | 2.56% |
| 1988 | 36 | 4.53% | 19.99% | 15.42% | 4.57% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 25.89, 37.18 and 48.47. The corresponding 10 year ratios are 18.36, 22.53 and 27.08. The corresponding historical ratios are 14.34, 20.77 and 25.05. The current ratio is 23.34 based on a stock price of $85.70 and EPS estimate for 2026 of $3.67. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 23.43, 33.65 and 43.79. The corresponding 10 year ratios are 20.77, 29.31 and 37.67. The corresponding historical ratios are 16.06, 22.40 and 28.05. The current ratio is 22.98 based on a stock price of $85.70 and AEPS estimate for 2026 of $3.73. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $53.23. The 10-year low, median, and high median Price/Graham Price Ratios are 1.19, 1.72 and 2.12. The current ratio is 1.61 based on a stock price of $85.72. This ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Book Value per Share Ratio of 1.85. The current P/B Ratio is 2.54 based on a stock price of $85.72, Book Value of $5,5553M, and Book Value per Share of 33.77. The current ratio is 37% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I also have a Book Value per Share estimate for 2026 of $36.09. This implies a ratio of 2.37 based on a stock price of $85.72 with a Book Value of $5,935M. This ratio is 28% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Cash Flow per Share Ratio of 33.96. The current ratio is 28.86 based on a Cash Flow per Share estimate for 2026 of $2.97, Cash Flow of $488.4M and a stock price of $85.73. The current ratio is 15% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get an historical median dividend yield of 1.38%. The current dividend yield is 0.09% based on a stock price of $85.72 and dividends of $0.08. The current dividend yield is 93% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. However, this is not a good test because of the lack of dividend growth.
I get a 10 year median dividend yield of 0.30%. The current dividend yield is 0.09% based on a stock price of $85.72 and dividends of $0.08. The current dividend yield is 68% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. However, this is not a good test because of the lack of dividend growth.
The 10-year median Price/Sales (Revenue) Ratio is 0.79. The current ratio is 1.18 based on Revenue estimate for 2026 of $11,992M, Revenue per Share of $72.92 and a stock price of $85.72. The current ratio is 49% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Results of stock price testing is that the stock price is probably relatively expensive. The P/S Ratio testing says that the stock price is relatively expensive. This is not confirmed by the P/GP Ratio test which says that the stock price is relatively reasonable. The dividend yield tests are not good ones because of the flat dividends.
When I look at analysts’ recommendations, I find Strong Buy (7), and Buy (8). The consensus is a Strong Buy. The 12 month stock price consensus is $114.67 with a high of $131.00 and low of $101.00.
It is not that analysts do not like this stock on Stock Chase, but they seem to prefer WSP. Amy Legate-Wolfe on Motley Fool say to buy because it gives investors exposure to infrastructure, nuclear, engineering, and long-cycle public spending instead of just a simple economic rebound trade.. Demetris Afxentiou on Motley Fool says Canada’s infrastructure boom is creating opportunities for investors. He says that AtkinsRéalis is now focusing on engineering, consulting, and project management work. That pivot has reduced risk and improved earnings stability. The company has put out a Press Release for the fourth quarter of 2025.
Simply Wall Street via Yahoo Finance reviewed this stock and says it is undervalued. Simply Wall Street has two warnings of earnings are forecast to decline by an average of 25.5% per year for the next 3 years; and high level of non-cash earnings.
Based in Montreal, AtkinsRéalis is a fully integrated professional services and project management firm that offers a wide range of services, including financing, consulting, engineering and construction, procurement, and operations and maintenance. Its web site is here AtkinsRealis Group Inc.
The last stock I wrote about was about was WSP Global Inc (TSX-WSP, OTC-WSPOF) … learn more. The next stock I will write about will be Fortis Inc (TSX-FTS, OTC-FRTSF) … learn more on Wednesday, May 20, 2026 around 5 pm. Tomorrow on my other blog I will write about Wolf of Oakville Review …. learn more on Tuesday, May 19, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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