Value Investors: 1 Infrastructure Stock Trading Cheap

Dexterra Group Inc. (TSX:DXT) plays a vital role in economies across Canada and contributes positively to local communities.

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Dexterra (TSX:DXT) delivers a range of support services for the creation, management, and operation of infrastructure across Canada. The company offers regional expertise and innovative solutions, giving clients confidence in operating day-to-day business activities. Activities include a comprehensive range of facilities management and operations services, workforce accommodation solutions, forestry services, innovative modular building capabilities and other support services for diverse clients in the public and private sectors.

The companies that began independently and now form Dexterra have an outstanding record of supporting the infrastructure and built assets that play a vital role in the world today. Dexterra is focused on long-term, sustainable, profitable growth of infrastructure support services activities with a focus on capital-light support services where the quality of people and methods are critical to success.

Diverse business segments

Dexterra’s business is organized into three operating business segments. The company’s facilities management business delivers operations and maintenance solutions for built assets and infrastructure in the public and private sectors, including aviation, defence, retail, healthcare, education, and government. The workforce accommodations solutions business provides a full range of forestry services and access solutions to clients in the mining, forestry, construction, and energy sectors. The modular solutions business integrates modern design concepts with off-site manufacturing processes to produce high-quality building solutions for social and affordable housing, commercial, residential, and industrial clients.

By being client-centric in the development and delivery of products and services, investing in the attraction, retention, and development of high-quality people, Dexterra is well positioned to meet customer needs in numerous sectors across Canada both now and in the future. The company embraces innovation, including the smart application of technology, and establishes intelligent partnerships with strategically relevant stakeholders.

Value-added solutions

Dexterra’s business strategy is to provide more complex service solutions, where there are better growth prospects and where margins are higher. Integrated service offerings combined with special expertise operating and managing special purpose facilities, including defence assets, airports, hospitals, and research facilities, support a strong value proposition to clients with complex projects or sophisticated facilities.

Cross-sector expertise

Through the company’s long-term client contracts, national footprint, and diverse client base, the company’s facilities management segment has reduced exposure to volatility in the market. Dexterra has built credibility in the market through the strength of client and stakeholder relationships and a sustained focus on innovation including the application of technology. The company’s competitive position is further enhanced by decades of experience, cross-sector expertise in support services solutions, and a diverse portfolio of accounts in urban and remote locations.

Further, Dexterra plays a vital role in economies across Canada and contributes positively to local communities.  From an emphasis on local hiring to participation in business associations to charitable support, Dexterra’s engagement has led to outcomes that both benefit the business and strengthen communities.

The quality of Dexterra’s people and their engagement and focus are significant factors in Dexterra’s performance. Dexterra invests in resources and programming to attract, retain, and develop high-quality talent across the company and at all levels. These factors should lead to increasing business intrinsic value over time.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.

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