Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Willbros Seems Ready For A Better Multiple

Willbros Group Inc. (NYSE:WG) stock is trading close to the same level it was three years ago, even though EBITDA during that period has increased by more than 3 times and revenue has increased by more than 50%. This discrepancy is quite visible in the valuation multiple as well, especially relative to competing EPC (Engineering, Procurement and Construction) companies like Quanta Services (NYSE:PWR), MYR Group (NASDAQ:MYRG) or KBR Inc. (NYSE:KBR)

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Source: Willbros presentation using Thomson pricing on Aug. 8th 2014

Part of this investor indifference towards improving performance can be attributed to the bad taste left from company's poor execution, aggressive bidding and unfavorable revenue mix of fixed rate...

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