CAPS Rating: 5 out of 5

An engineering design services firm and an U.S. federal government contractor for systems engineering and technical assistance and operations and maintenance services.


Player Avatar brightsideLP (95.64) Submitted: 9/12/2009 12:49:48 PM : Outperform Start Price: $40.21 URS Score: -38.83

I survived the November plunge and March plunge nearly unscathed due in a large part to having a very large weighting in 2 stocks – FSC and URS.
I sold 2/5 of the position way too early between $38-40. Still holding the rest of my original purchase at $26.48…and I plan to for a while.
URS (to me) is the hands down best pure play engineering vehicle – period.
URS STOLE – and I reiterate – STOLE Washington Group in a merger a few years back. The combination of this company is truly amazing.
They get contract after contract after contract – it never stops – and they aren’t small either. Here is something from this week – today actually (not large but you can go back and look at the sheer number of contracts rolling in)
Here is an example of how great Washington is - they gobble up these 2billion dollar gigs that have high margins. The synergy between these two companies is very good.
The company has many ways that they generate revenues - for example they get management fee’s from ventures such as…
Here are some numbers: (after the run its had – you would think the stock would be expensive….nope)
Price/Sales (ttm):0.37
Price/Book (mrq):1.02
This is still insanely low – and URS has a TON of valuable equipment with zero or nearly zero value on the books.
Profit Margin (ttm):2.38%
Operating Margin (ttm):4.21%
You could argue these are nothing special – but the sheer amount of revenue URS does makes this company print money. However – I would note that I expect the Washington acquisition to increase margins steadily over the foreseeable future.
Revenue (ttm):10.35B
Revenue Per Share (ttm):126.502
Qtrly Revenue Growth (yoy):11.60%
Gross Profit (ttm):477.51M
EBITDA (ttm):580.87M
Book Value Per Share (mrq):45.269001
Operating Cash Flow (ttm):582.08M
Levered Free Cash Flow (ttm):337.20M
This company is a BEAST. A true Silverback….which I might add is the real king of the jungle.
Look at what this company does :
URS Corporation provides engineering, construction, and technical services to the power, infrastructure, Federal, and industrial and commercial market sectors in the United States and internationally. Its services for power sector include the plan, design, engineer, construct, retrofit, and maintain a range of power-generating facilities; and the systems that transmit and distribute electricity, as well as the development and installation of clean air technologies that reduce emissions.
Provides services for infrastructure sector comprises program management, planning, architect, engineering, general contracting, construction, and construction management for surface, air, and rail transportation networks; ports and harbors; and water supply, and treatment and conveyance systems. Its services for Federal sector consists of program management; planning, design, and engineering; systems engineering and technical assistance to construction and construction management; operations and maintenance; and decommissioning and closure.
URS services for industrial and commercial sector includes front-end studies, engineering and process design, procurement, construction and construction management, facility management, and operations and maintenance, as well as due diligence, permitting, compliance, environmental management, pollution control, health and safety, waste management, and hazardous waste remediation.

It’s a mouth full – but nearly each and every segment of this company is great in my view.
The outlook is very bright – and the fact that URS is a one stop shop – and a reputation for being the best in the business in several of these areas.
I see margins improving along with overall growth in revenues.
URS is also a one stop shop for Obama to dump piles of cash on.
Technically the stock just took out its highs and is in a bullish formation. However I would use pullbacks as an entry point – and buy the stock in several separate orders.

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