AECON GROUP INC (ARE.CA) Fundamental Analysis & Valuation

TSX:ARE • CA00762V1094

Current stock price

41.79 CAD
-0.31 (-0.74%)
Last:

This ARE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. ARE.CA Profitability Analysis

1.1 Basic Checks

  • ARE had positive earnings in the past year.
  • In the past year ARE had a positive cash flow from operations.
  • Of the past 5 years ARE 4 years were profitable.
  • In multiple years ARE reported negative operating cash flow during the last 5 years.
ARE.CA Yearly Net Income VS EBIT VS OCF VS FCFARE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M

1.2 Ratios

  • ARE has a worse Return On Assets (0.38%) than 71.43% of its industry peers.
  • ARE has a worse Return On Equity (1.64%) than 71.43% of its industry peers.
  • With a Return On Invested Capital value of 3.00%, ARE is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA 0.38%
ROE 1.64%
ROIC 3%
ROA(3y)1.2%
ROA(5y)1.19%
ROE(3y)3.54%
ROE(5y)3.85%
ROIC(3y)N/A
ROIC(5y)N/A
ARE.CA Yearly ROA, ROE, ROICARE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 0.28%, ARE is doing worse than 71.43% of the companies in the same industry.
  • ARE's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 1.22%, ARE is doing worse than 71.43% of the companies in the same industry.
  • ARE's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 7.25%, ARE perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ARE has declined.
Industry RankSector Rank
OM 1.22%
PM (TTM) 0.28%
GM 7.25%
OM growth 3Y-6.37%
OM growth 5Y-19.55%
PM growth 3Y-24.45%
PM growth 5Y-35.06%
GM growth 3Y-1.46%
GM growth 5Y-8.02%
ARE.CA Yearly Profit, Operating, Gross MarginsARE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10

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3

2. ARE.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARE is destroying value.
  • The number of shares outstanding for ARE has been increased compared to 1 year ago.
  • ARE has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ARE has a worse debt to assets ratio.
ARE.CA Yearly Shares OutstandingARE.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
ARE.CA Yearly Total Debt VS Total AssetsARE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • ARE has an Altman-Z score of 2.17. This is not the best score and indicates that ARE is in the grey zone with still only limited risk for bankruptcy at the moment.
  • ARE has a Altman-Z score of 2.17. This is in the lower half of the industry: ARE underperforms 71.43% of its industry peers.
  • ARE has a debt to FCF ratio of 10.21. This is a negative value and a sign of low solvency as ARE would need 10.21 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 10.21, ARE is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
  • A Debt/Equity ratio of 0.40 indicates that ARE is not too dependend on debt financing.
  • ARE has a better Debt to Equity ratio (0.40) than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 10.21
Altman-Z 2.17
ROIC/WACC0.34
WACC8.73%
ARE.CA Yearly LT Debt VS Equity VS FCFARE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • ARE has a Current Ratio of 1.10. This is a normal value and indicates that ARE is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of ARE (1.10) is comparable to the rest of the industry.
  • A Quick Ratio of 1.10 indicates that ARE should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.10, ARE perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 1.1
ARE.CA Yearly Current Assets VS Current LiabilitesARE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. ARE.CA Growth Analysis

3.1 Past

  • ARE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 140.78%, which is quite impressive.
  • The earnings per share for ARE have been decreasing by -18.39% on average. This is quite bad
  • The Revenue has grown by 28.09% in the past year. This is a very strong growth!
  • The Revenue has been growing by 8.32% on average over the past years. This is quite good.
EPS 1Y (TTM)140.78%
EPS 3Y9.49%
EPS 5Y-18.39%
EPS Q2Q%147.62%
Revenue 1Y (TTM)28.09%
Revenue growth 3Y4.99%
Revenue growth 5Y8.32%
Sales Q2Q%21.64%

3.2 Future

  • Based on estimates for the next years, ARE will show a very strong growth in Earnings Per Share. The EPS will grow by 79.32% on average per year.
  • Based on estimates for the next years, ARE will show a quite strong growth in Revenue. The Revenue will grow by 17.79% on average per year.
EPS Next Y284.46%
EPS Next 2Y118.21%
EPS Next 3Y103.2%
EPS Next 5Y79.32%
Revenue Next Year5.27%
Revenue Next 2Y6.32%
Revenue Next 3Y18.4%
Revenue Next 5Y17.79%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ARE.CA Yearly Revenue VS EstimatesARE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
ARE.CA Yearly EPS VS EstimatesARE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 1 -1 2 3 4

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3

4. ARE.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 99.50 indicates a quite expensive valuation of ARE.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARE indicates a slightly more expensive valuation: ARE is more expensive than 71.43% of the companies listed in the same industry.
  • ARE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.88.
  • A Price/Forward Earnings ratio of 25.88 indicates a quite expensive valuation of ARE.
  • Based on the Price/Forward Earnings ratio, ARE is valued a bit more expensive than 71.43% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ARE to the average of the S&P500 Index (22.19), we can say ARE is valued inline with the index average.
Industry RankSector Rank
PE 99.5
Fwd PE 25.88
ARE.CA Price Earnings VS Forward Price EarningsARE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ARE is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
  • ARE's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 45.53
EV/EBITDA 18.58
ARE.CA Per share dataARE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • ARE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ARE's earnings are expected to grow with 103.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y118.21%
EPS Next 3Y103.2%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. ARE.CA Dividend Analysis

5.1 Amount

  • ARE has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
  • ARE's Dividend Yield is rather good when compared to the industry average which is at 0.99. ARE pays more dividend than 85.71% of the companies in the same industry.
  • ARE's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.83%

5.2 History

  • The dividend of ARE has a limited annual growth rate of 4.01%.
  • ARE has paid a dividend for at least 10 years, which is a reliable track record.
  • ARE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.01%
Div Incr Years1
Div Non Decr Years17
ARE.CA Yearly Dividends per shareARE.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • ARE pays out 315.92% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of ARE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP315.92%
EPS Next 2Y118.21%
EPS Next 3Y103.2%
ARE.CA Yearly Income VS Free CF VS DividendARE.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M
ARE.CA Dividend Payout.ARE.CA Dividend Payout, showing the Payout Ratio.ARE.CA Dividend Payout.PayoutRetained Earnings

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ARE.CA Fundamentals: All Metrics, Ratios and Statistics

AECON GROUP INC

TSX:ARE (3/27/2026, 7:00:00 PM)

41.79

-0.31 (-0.74%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)03-05
Earnings (Next)04-21
Inst Owners21.03%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner ChangeN/A
Market Cap2.68B
Revenue(TTM)5.43B
Net Income(TTM)15.16M
Analysts69.33
Price Target43.39 (3.83%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.83%
Yearly Dividend0.75
Dividend Growth(5Y)4.01%
DP315.92%
Div Incr Years1
Div Non Decr Years17
Ex-Date03-23
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.65%
Min EPS beat(2)34.06%
Max EPS beat(2)59.23%
EPS beat(4)2
Avg EPS beat(4)-101.49%
Min EPS beat(4)-260.38%
Max EPS beat(4)59.23%
EPS beat(8)5
Avg EPS beat(8)-47.44%
EPS beat(12)8
Avg EPS beat(12)7.76%
EPS beat(16)11
Avg EPS beat(16)-1.53%
Revenue beat(2)2
Avg Revenue beat(2)9.03%
Min Revenue beat(2)8.99%
Max Revenue beat(2)9.07%
Revenue beat(4)4
Avg Revenue beat(4)12.55%
Min Revenue beat(4)8.99%
Max Revenue beat(4)17.47%
Revenue beat(8)6
Avg Revenue beat(8)3.04%
Revenue beat(12)8
Avg Revenue beat(12)1.51%
Revenue beat(16)12
Avg Revenue beat(16)4.02%
PT rev (1m)4.47%
PT rev (3m)6.45%
EPS NQ rev (1m)-203.17%
EPS NQ rev (3m)-53.6%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.49%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 99.5
Fwd PE 25.88
P/S 0.49
P/FCF 45.53
P/OCF 21.15
P/B 2.9
P/tB 4.01
EV/EBITDA 18.58
EPS(TTM)0.42
EY1.01%
EPS(NY)1.61
Fwd EY3.86%
FCF(TTM)0.92
FCFY2.2%
OCF(TTM)1.98
OCFY4.73%
SpS84.82
BVpS14.39
TBVpS10.42
PEG (NY)0.35
PEG (5Y)N/A
Graham Number11.66
Profitability
Industry RankSector Rank
ROA 0.38%
ROE 1.64%
ROCE 4.79%
ROIC 3%
ROICexc 3.22%
ROICexgc 4.01%
OM 1.22%
PM (TTM) 0.28%
GM 7.25%
FCFM 1.08%
ROA(3y)1.2%
ROA(5y)1.19%
ROE(3y)3.54%
ROE(5y)3.85%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-3.12%
ROICexgc growth 5Y-13.33%
ROICexc growth 3Y6.8%
ROICexc growth 5Y-8.38%
OM growth 3Y-6.37%
OM growth 5Y-19.55%
PM growth 3Y-24.45%
PM growth 5Y-35.06%
GM growth 3Y-1.46%
GM growth 5Y-8.02%
F-Score7
Asset Turnover1.36
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 10.21
Debt/EBITDA 2.13
Cap/Depr 63.87%
Cap/Sales 1.25%
Interest Coverage 1.87
Cash Conversion 73.42%
Profit Quality 387.88%
Current Ratio 1.1
Quick Ratio 1.1
Altman-Z 2.17
F-Score7
WACC8.73%
ROIC/WACC0.34
Cap/Depr(3y)51.62%
Cap/Depr(5y)49.16%
Cap/Sales(3y)1.01%
Cap/Sales(5y)0.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)140.78%
EPS 3Y9.49%
EPS 5Y-18.39%
EPS Q2Q%147.62%
EPS Next Y284.46%
EPS Next 2Y118.21%
EPS Next 3Y103.2%
EPS Next 5Y79.32%
Revenue 1Y (TTM)28.09%
Revenue growth 3Y4.99%
Revenue growth 5Y8.32%
Sales Q2Q%21.64%
Revenue Next Year5.27%
Revenue Next 2Y6.32%
Revenue Next 3Y18.4%
Revenue Next 5Y17.79%
EBIT growth 1Y155.92%
EBIT growth 3Y-1.7%
EBIT growth 5Y-12.85%
EBIT Next Year449.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y228.77%
FCF growth 3YN/A
FCF growth 5Y-15.15%
OCF growth 1Y1566.27%
OCF growth 3YN/A
OCF growth 5Y-14.24%

AECON GROUP INC / ARE.CA Fundamental Analysis FAQ

What is the fundamental rating for ARE stock?

ChartMill assigns a fundamental rating of 4 / 10 to ARE.CA.


What is the valuation status of AECON GROUP INC (ARE.CA) stock?

ChartMill assigns a valuation rating of 3 / 10 to AECON GROUP INC (ARE.CA). This can be considered as Overvalued.


Can you provide the profitability details for AECON GROUP INC?

AECON GROUP INC (ARE.CA) has a profitability rating of 2 / 10.


What is the valuation of AECON GROUP INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for AECON GROUP INC (ARE.CA) is 99.5 and the Price/Book (PB) ratio is 2.9.


What is the financial health of AECON GROUP INC (ARE.CA) stock?

The financial health rating of AECON GROUP INC (ARE.CA) is 3 / 10.