Willbros Group, Inc. (NYSE:WG)

CAPS Rating: 3 out of 5

The Company provides construction, engineering, specialty services and development activities to the oil, gas and power industries and government entities.

Recs

2
Player Avatar nickbaes (76.48) Submitted: 8/28/2008 1:31:45 PM : Outperform Start Price: $41.42 WG Score: -134.56

$1.6 b cap. (top end of sweet spot)

Forward pe = 16.7 (ttm pe = 32)

Based in Panama - which I like.

Willbros Group, Inc. provides engineering, construction, and specialty services to oil, gas, power, refinery, and petrochemical industries, and government entities worldwide.

I love this area of business over the coming 5 years. Panama is an excellent location. Very broad and diverse...which is even better considering I dont believe that ANYONE really knows what the economy will look like in the short - to medium term.

Trading 1 x sales.
Qtrly Revenue Growth (yoy):   198.40%
*this is obviously gonna start declining...but thats just fine from these lofty numbers.

Profit Margin (ttm):   3.12%
Operating Margin (ttm):   6.65%
Return on Assets (ttm):   10.27%
Return on Equity (ttm):   20.29%

Cash approx = debt. Which is fine.
Cash flows ok...not barn burner. No red flags (remember this company needs lots of "toys" to do its job.)

Still need to better evaluate management. But no red flags at first look on this issue.

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