Another optionis to keep the concessions including the 407 as a hedge against inflation and borrow at very low rates to buy back shares.
It is very plausible that consumption will pick up substantially after the pandemic, infrastructure programs worldwide will spin and the economy will roar, unemployment rates with drop, wages will increase feeding consumption, both of which will fuel inflation.
Central banks will increase rates but moderately so as not to smash over endebted households and over endebted governments, so higher inflation will have to be tolerated i would say up to 4% or so.
While hourly rates will follow and Engineering Services will do well, the 407 investment will become an even safer haven, as it toll rates can easily be inflation adjusted.
As a note, the EPS projected for SNC in 2021 and 2022 are respectively 1.88 CAD and 2.44 CAD versus 2.29 CAD and 2.50 CAD for STN which is trading at about 48-49 CAD.
Considering the stronger inflation hedge provided by the 407 (50% of the market value of SNC), we should trade higher than Stantec.
As to earnings, management has provided outlook on October 31 and reiterated the same outlook for engineering services last week (they have the figure now so the Holy Spirit is not going to change them) : What they have said is :
Single to mi-digit less sales than Q4 2019 and 8.5 to 9.5% profit margin.
Consider no revenue from 407 (see 407ETR.com press release of last week confirming no dividends paid for 2019 Q4).
LSTKs you know the story.
So no surprise here. cqfd
If you don't get it, please sell your shares and give them to a competent fund manager.