URS CorporationURS

Morningstar Rating

Stock Research and Analysis

by Patricia Oey

URS is an engineering and construction (E&C), and technical services organization. It serves four end-market segments--federal, power, infrastructure, and industrial and commercial. Although the E&C industry is highly competitive and cyclical, Read more

Bulls Say

In the near term, we expect URS to fare slightly better than its E&C peers because of its large book of federal contracts and long-standing relationships with its private-sector customers.

The federal stimulus package allocated about $130 billion for projects within URS' area of expertise, including transportation, water infrastructure, and weapons-facility-cleanup projects.

As one of the largest engineering and construction companies with a strong nuclear practice, URS could benefit from a likely U.S. nuclear power renaissance. Read more

Bears Say

The company's power segment and industrial and commercial segment are expected to see revenue declines in the near term because of weaker economic conditions. These two segments constitute about half of URS' revenue.

Anticipated public spending on infrastructure projects could be slower and lower than expected because of weakening state budgets.

Contracts with the U.S. Army represent about 16% of total revenue; any significant change in military policy could significantly affect URS' financial performance. Read more

Strategy

URS plans to capitalize on specific growth areas, including nuclear power, nuclear cleanup in the U.S. and the U.K., and oil and gas production. Read more

Management

Martin Koffel was appointed CEO in 1989 when the company was in financial distress. Hoping to avert bankruptcy, Koffel sold noncore assets, reduced foreign ventures, and pared debt to put URS back in the black by 1991. With the firm's financial health Read more

Profile

URS is a top-tier diversified engineering, construction, and technical services firm. Typical projects involve power plant construction, civil-engineering projects, government Read more

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