AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
TSX:ARE - Toronto Stock Exchange - CA00762V1094 - Common Stock - Currency: CAD
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 has a decent growth rate and is not valued too expensively. ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ARE had negative 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.
The reported operating cash flow has been mixed in the past 5 years: ARE reported negative operating cash flow in multiple years.
1.2 Ratios
ARE's Return On Assets of -2.70% is on the low side compared to the rest of the industry. ARE is outperformed by 71.43% of its industry peers.
ARE has a Return On Equity of -9.98%. This is in the lower half of the industry: ARE underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.7% | ||
| ROE | -9.98% | ||
| ROIC | 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
1.3 Margins
ARE has a worse Gross Margin (3.62%) than 71.43% of its industry peers.
ARE's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for ARE so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 3.62% |
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
ARE does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ARE has more shares outstanding
The number of shares outstanding for ARE has been increased compared to 5 years ago.
ARE has a worse debt/assets ratio than last year.
2.2 Solvency
ARE has an Altman-Z score of 1.72. This is a bad value and indicates that ARE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.72, ARE is doing worse than 71.43% of the companies in the same industry.
ARE has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ARE (0.45) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACCN/A
WACC7.58%
2.3 Liquidity
ARE has a Current Ratio of 1.19. This is a normal value and indicates that ARE is financially healthy and should not expect problems in meeting its short term obligations.
ARE has a Current ratio (1.19) which is in line with its industry peers.
ARE has a Quick Ratio of 1.18. This is a normal value and indicates that ARE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.18, ARE is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
ARE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -151.24%.
ARE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.70%.
The Revenue has been growing slightly by 4.16% on average over the past years.
EPS 1Y (TTM)-151.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-514.15%
Revenue 1Y (TTM)1.7%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%25.4%
3.2 Future
ARE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 53.93% yearly.
ARE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.95% yearly.
EPS Next Y207.76%
EPS Next 2Y101.48%
EPS Next 3Y53.93%
EPS Next 5YN/A
Revenue Next Year10.83%
Revenue Next 2Y8.01%
Revenue Next 3Y6.95%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ARE. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 7.61, the valuation of ARE can be described as very cheap.
100.00% of the companies in the same industry are more expensive than ARE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, ARE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 53.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y101.48%
EPS Next 3Y53.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.85%, ARE is a good candidate for dividend investing.
In the last 3 months the price of ARE has falen by -32.64%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.05, ARE pays a better dividend. On top of this ARE pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
5.2 History
The dividend of ARE is nicely growing with an annual growth rate of 6.05%!
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 Years0
Div Non Decr Years16
5.3 Sustainability
The earnings of ARE are negative and hence is the payout ratio. ARE will probably not be able to sustain this dividend level.
ARE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-51.99%
EPS Next 2Y101.48%
EPS Next 3Y53.93%
TSX:ARE (4/30/2025, 7:00:00 PM)
16.14
+0.23 (+1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners19.06%
Inst Owner ChangeN/A
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap1.02B
Analysts76
Price Target25.55 (58.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
Yearly Dividend0.75
Dividend Growth(5Y)6.05%
DP-51.99%
Div Incr Years0
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)9.93%
Min Revenue beat(2)5.5%
Max Revenue beat(2)14.37%
Revenue beat(4)3
Avg Revenue beat(4)1.07%
Min Revenue beat(4)-16.79%
Max Revenue beat(4)14.37%
Revenue beat(8)4
Avg Revenue beat(8)-2.94%
Revenue beat(12)8
Avg Revenue beat(12)0.37%
Revenue beat(16)10
Avg Revenue beat(16)1.65%
PT rev (1m)-18.25%
PT rev (3m)-18.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-31.12%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-26.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.61 | ||
| P/S | 0.23 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.11 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.03
EYN/A
EPS(NY)2.12
Fwd EY13.14%
FCF(TTM)-1.21
FCFYN/A
OCF(TTM)-0.14
OCFYN/A
SpS70.85
BVpS14.54
TBVpS10.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.7% | ||
| ROE | -9.98% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 3.62% | ||
| 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
ROICexcg growth 3YN/A
ROICexcg 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-Score1
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 70.89% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.72 |
F-Score1
WACC7.58%
ROIC/WACCN/A
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)-151.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-514.15%
EPS Next Y207.76%
EPS Next 2Y101.48%
EPS Next 3Y53.93%
EPS Next 5YN/A
Revenue 1Y (TTM)1.7%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%25.4%
Revenue Next Year10.83%
Revenue Next 2Y8.01%
Revenue Next 3Y6.95%
Revenue Next 5YN/A
EBIT growth 1Y-16989.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year746.41%
EBIT Next 3Y120.16%
EBIT Next 5YN/A
FCF growth 1Y37.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y88.9%
OCF growth 3YN/A
OCF growth 5Y-47.93%