Bram de Haas
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Bram de Haas in Special Situation Investing News,

Arcadis At 12.5x Forward Earnings Is A Good Deal

Summary

  • Arcadis is a compounder with a competitive advantage and an excellent track record growing EPS and RoIC.
  • The shares sold off sharply because the company is exposed to Brazil and China and took a write down in the U.S.
  • Structurally it is sound and its workforce and executives interests are well aligned with those of minority shareholders.
  • The consensus earnings forecast looks really good to me and it puts 2015 EPS at $2.
  • At 12.5x forward earnings you are getting a great company at a good price.

Arcadis (OTC:ARCVF) is a global natural and built asset design & consultancy firm. The company offers design, engineering, consulting, project and management services. With 28.000 employees it generates over $3.3 billion in annual revenue. In the U.S. it is not a well known company but in its country of origin where it is headquartered, the Netherlands, it is. No less than eight analysts follow the company which has a market cap of less than $2 billion. One U.S. company which is a close competitor is Tetra Tech (NASDAQ:TTEK). Liquidity is best when traded in Amsterdam.

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Arcadis At 12.5x Forward Earnings Is A Good Deal

http://seekingalpha.com/article/3475006-arcadis-at...