AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARE - CA00762V1094 - Common Stock
31.87 CAD
+0.8 (+2.57%)
Overall ARE gets a fundamental rating of 3 out of 10. We evaluated ARE against 7 industry peers in the Construction & Engineering industry. ARE may be in some trouble as it scores bad on both profitability and health. ARE is valued quite expensive, but it does show an excellent growth. Finally ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ARE had positive earnings in the past year.
In the past year ARE has reported a negative 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.
1.2 Ratios
ARE has a Return On Assets of 0.23%. This is amonst the worse of the industry: ARE underperforms 85.71% of its industry peers.
ARE has a Return On Equity of 0.92%. This is amonst the worse of the industry: ARE underperforms 85.71% of its industry peers.
ARE's Return On Invested Capital of 1.63% is on the low side compared to the rest of the industry. ARE is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.92% | ||
| ROIC | 1.63% |
ROA(3y)1.36%
ROA(5y)1.65%
ROE(3y)4.06%
ROE(5y)5.54%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ARE (0.16%) is worse than 71.43% of its industry peers.
Looking at the Operating Margin, with a value of 0.62%, ARE is doing worse than 71.43% of the companies in the same industry.
ARE has a Gross Margin of 6.92%. This is in the lower half of the industry: ARE underperforms 71.43% of its industry peers.
ARE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.62% | ||
| PM (TTM) | 0.16% | ||
| GM | 6.92% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-22.44%
GM growth 5Y-16.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARE is destroying value.
ARE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ARE has more shares outstanding
ARE has a worse debt/assets ratio than last year.
2.2 Solvency
ARE has an Altman-Z score of 2.09. 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 2.09. This is amonst the worse of the industry: ARE underperforms 85.71% of its industry peers.
ARE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
ARE has a Debt to Equity ratio of 0.43. This is in the better half of the industry: ARE outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.09 |
ROIC/WACC0.18
WACC9.27%
2.3 Liquidity
ARE has a Current Ratio of 1.15. This is a normal value and indicates that ARE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.15, ARE perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
ARE has a Quick Ratio of 1.14. This is a normal value and indicates that ARE is financially healthy and should not expect problems in meeting its short term obligations.
ARE's Quick ratio of 1.14 is in line compared to the rest of the industry. ARE outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
ARE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.09%, which is quite impressive.
The Revenue has grown by 25.68% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 4.16% on average over the past years.
EPS 1Y (TTM)110.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.65%
Revenue 1Y (TTM)25.68%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%19.98%
3.2 Future
The Earnings Per Share is expected to grow by 44.72% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 20.16% on average over the next years. This is a very strong growth
EPS Next Y121.25%
EPS Next 2Y89.11%
EPS Next 3Y58.17%
EPS Next 5Y44.72%
Revenue Next Year26.6%
Revenue Next 2Y15.48%
Revenue Next 3Y12.96%
Revenue Next 5Y20.16%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 289.73 indicates a quite expensive valuation of ARE.
Compared to the rest of the industry, the Price/Earnings ratio of ARE indicates a rather expensive valuation: ARE more expensive than 85.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARE to the average of the S&P500 Index (27.19), we can say ARE is valued expensively.
The Price/Forward Earnings ratio is 19.63, which indicates a rather expensive current valuation of ARE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE indicates a rather cheap valuation: ARE is cheaper than 85.71% of the companies listed in the same industry.
ARE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 289.73 | ||
| Fwd PE | 19.63 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as ARE's earnings are expected to grow with 58.17% in the coming years.
PEG (NY)2.39
PEG (5Y)N/A
EPS Next 2Y89.11%
EPS Next 3Y58.17%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 2.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.11, ARE pays a better dividend. On top of this ARE pays more dividend than 85.71% of the companies listed in the same industry.
ARE's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
On average, the dividend of ARE grows each year by 6.05%, which is quite nice.
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)6.05%
Div Incr Years1
Div Non Decr Years17
5.3 Sustainability
563.75% of the earnings are spent on dividend by ARE. This is not a sustainable payout ratio.
ARE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP563.75%
EPS Next 2Y89.11%
EPS Next 3Y58.17%
TSX:ARE (1/9/2026, 7:00:00 PM)
31.87
+0.8 (+2.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners18.74%
Inst Owner ChangeN/A
Ins Owners1.18%
Ins Owner ChangeN/A
Market Cap2.02B
Revenue(TTM)5.16B
Net Income(TTM)8.47M
Analysts69.33
Price Target34.22 (7.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend0.75
Dividend Growth(5Y)6.05%
DP563.75%
Div Incr Years1
Div Non Decr Years17
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-113.16%
Min EPS beat(2)-260.38%
Max EPS beat(2)34.06%
EPS beat(4)1
Avg EPS beat(4)-128.75%
Min EPS beat(4)-260.38%
Max EPS beat(4)34.06%
EPS beat(8)4
Avg EPS beat(8)-60.01%
EPS beat(12)8
Avg EPS beat(12)4.98%
EPS beat(16)10
Avg EPS beat(16)-8.98%
Revenue beat(2)2
Avg Revenue beat(2)13.23%
Min Revenue beat(2)8.99%
Max Revenue beat(2)17.47%
Revenue beat(4)4
Avg Revenue beat(4)11.66%
Min Revenue beat(4)5.5%
Max Revenue beat(4)17.47%
Revenue beat(8)5
Avg Revenue beat(8)0.92%
Revenue beat(12)8
Avg Revenue beat(12)1.42%
Revenue beat(16)11
Avg Revenue beat(16)3.14%
PT rev (1m)0.27%
PT rev (3m)42.47%
EPS NQ rev (1m)3.38%
EPS NQ rev (3m)20%
EPS NY rev (1m)3.18%
EPS NY rev (3m)30%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.48%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 289.73 | ||
| Fwd PE | 19.63 | ||
| P/S | 0.39 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.2 | ||
| P/tB | 3.09 | ||
| EV/EBITDA | 19.1 |
EPS(TTM)0.11
EY0.35%
EPS(NY)1.62
Fwd EY5.09%
FCF(TTM)-1.42
FCFYN/A
OCF(TTM)-0.53
OCFYN/A
SpS81.54
BVpS14.47
TBVpS10.3
PEG (NY)2.39
PEG (5Y)N/A
Graham Number5.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.92% | ||
| ROCE | 2.26% | ||
| ROIC | 1.63% | ||
| ROICexc | 1.65% | ||
| ROICexgc | 2.05% | ||
| OM | 0.62% | ||
| PM (TTM) | 0.16% | ||
| GM | 6.92% | ||
| FCFM | N/A |
ROA(3y)1.36%
ROA(5y)1.65%
ROE(3y)4.06%
ROE(5y)5.54%
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 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-22.44%
GM growth 5Y-16.54%
F-Score5
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 54.82% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 0.95 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.09 |
F-Score5
WACC9.27%
ROIC/WACC0.18
Cap/Depr(3y)44.95%
Cap/Depr(5y)66.77%
Cap/Sales(3y)0.88%
Cap/Sales(5y)1.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)110.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.65%
EPS Next Y121.25%
EPS Next 2Y89.11%
EPS Next 3Y58.17%
EPS Next 5Y44.72%
Revenue 1Y (TTM)25.68%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%19.98%
Revenue Next Year26.6%
Revenue Next 2Y15.48%
Revenue Next 3Y12.96%
Revenue Next 5Y20.16%
EBIT growth 1Y128.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year607.52%
EBIT Next 3Y121.36%
EBIT Next 5YN/A
FCF growth 1Y25.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y61.53%
OCF growth 3YN/A
OCF growth 5Y-47.93%
AECON GROUP INC / ARE.CA FAQ
What is the fundamental rating for ARE stock?
ChartMill assigns a fundamental rating of 3 / 10 to ARE.CA.
What is the valuation status of AECON GROUP INC (ARE.CA) stock?
ChartMill assigns a valuation rating of 2 / 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 1 / 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 289.73 and the Price/Book (PB) ratio is 2.2.
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.