IBI Group (TSX:IBG) is a global architecture, engineering, planning, and technology firm operating in 11 countries across the world. IBI is involved in the design of integrated cities. The company’s business operations are managed and controlled through a regional management structure.
IBI offers the services of professionals having a broad range of academic backgrounds and experience in urban design and planning, architecture, and civil engineering. The company’s clients include national, provincial, state, and local government agencies and public institutions, as well as leading private sector companies in land and infrastructure development industries.
IBI supports the quality and sustainability of modern cities and urban areas. The company’s provides diverse professional services on an integrated basis for specific projects. Clients benefit from the combination of the specialized knowledge, experience, and information derived from each discipline. This approach helps with identifying and understanding the challenges, formulating unique solutions and completing plans, designs, and programs for implementation on an integrated basis.
IBI provides services and technologies from major cities in Canada, selected states in the United States, the United Kingdom, and other international locations. IBI has expanded the company’s geographic scope as a result of identifying attractive market opportunities as well as in response to specific requests by clients for specific services. Given the number of offices and the need for closer management and more effective integration of the various operations, IBI has established a regional business structure in both the United States and the United Kingdom.
Strong shareholder alignment
The company has a talented work force, strategically located across the world, led by a proven and motivated management team. In addition, IBI fosters a culture of diversity and inclusion within the company’s work force, creating a cross-section of talent that positively contributes to creativity and innovation. A key element in the successful growth of IBI has been the company’s ability to develop and retain senior management.
IBI’s senior management owns a significant stake in IBI, which provides strong alignment with shareholders.
Robust business development
The company’s operations are focused on managing resources and providing management oversight on administrative systems. The company’s infrastructure division is focused on identifying new areas of business and establishing the strategic direction for new business.
The retention of the management group is considered to be a significant competitive strength of IBI providing continuity on long-term projects, a significant accumulated knowledge base, stability in the practice, and continuity in the company’s relationships with its clients. IBI encourages employees in leadership positions within the firm who are retiring to continue to practice on a part-time basis to enhance this continuity. IBI’s executives focus on mentoring IBI’s professionals at all levels to develop the next generation of leadership.
IBI provides services and technologies to a large number of clients operating in each of the main areas of development that the firm serves. As a result, IBI is not dependent upon any single client, with no single client accounting for more than 10% of IBI’s revenues in any of the last three years.
Overall, the stock appears undervalued and could rise significantly in 2021.