Q: I read that ATRL owns a nuclear energy plant. I also read that many climate change groups have now accepted that nuclear energy is the future. Atkins-Realis stock price has gained almost 25% in the past 2 months. What is fueling the stock price change? How much value to you put on its nuclear plant with respect to its recent and potential future gain?
Thank you very much
Thank you very much
5i Research Answer:
ATRL has been up big due to fundemental improvements, seeing nice revenue growth and margin expansion in 2023. ATRL does have a large and growing presence in nuclear energy which is now the companies second largest operating segment in terms of revenue. We are unsure of the economic impact of the nuclear plant, but ATRL's nuclear services are evidently in demand and grew 16.5% year over year in 2023. We like the momentum in nuclear energy and ATRL is benefiting from more companies demanding their services as it is implemented. ATRL does have such a wide service offering however, so we would consider that nuclear energy is only one piece of the puzzle for them before investing.