Topic: How To Invest

Q: Pat: Can I have your recommendation on IBI Group? Thank you.

Article Excerpt

A: IBI Group Inc., $6.07, symbol IBG on Toronto (Shares outstanding: 31.2 million; Market cap: $188.1 million;, began operating in 1974 and is now the eighth-largest architectural firm in the world. It has 63 offices in 11 countries. The company’s three main businesses are: Buildings (45% of total revenue) designs and engineers a wide variety of residential complexes, office towers, schools and hospitals. Infrastructure (40%) designs roads, bridges, sewer systems and public transit facilities. Intelligence (15%) provides architectural consulting and related services. IBI’s revenue rose from $332.3 million in 2011 to $337.7 million in 2012. That was partly due to acquisitions. However, some of these purchases failed, and the company was forced to write down related work. As a result, revenue fell to $257.4 million in 2013. In light of the revenue drop, IBI sold some of its less-important operations and cut its costs. That helps boost its revenue to $298.3 million in 2014, and to $327.1 million in 2015. The company earned $0.70 a share…

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