Hold on to these service companies

Article Excerpt

STANTEC INC. $35.44 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares o/s: 113.8 million; Market cap: $4.1 billion; Divd. yield: 1.4%) sells consulting, project management, design and technology services. Most of its clients operate in the oil and gas, transportation and construction industries. In the three months ended September 30, 2017, the company’s revenue rose 3.3%, to $1.30 billion from $1.26 billion a year earlier. Earnings, excluding one-time items, fell 3.0%, to $61.1 million, or $0.54 a share, from $63.0 million, or $0.55. The decline was mostly because of higher income tax expenses due to corporate reorganization. Stantec’s biggest acquisition to date is its $795 million U.S purchase of MWH. That deal has given it a major global presence in the water infrastructure industry. The company continues to grow by acquisition of smaller firms. Its latest is North State Resources, a 60-employee environmental services company based in California. North State helps clients comply with environmental laws such as the National Environmental…