AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARE - CA00762V1094 - Common Stock
34.01 CAD
-0.17 (-0.5%)
Taking everything into account, ARE scores 4 out of 10 in our fundamental rating. ARE was compared to 9 industry peers in the Construction & Engineering industry. Both the profitability and financial health of ARE have multiple concerns. ARE is valied quite expensively at the moment, while it does show a decent growth rate. ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ARE was profitable.
- In the past year ARE has reported a negative cash flow from operations.
- ARE had positive earnings in 4 of the past 5 years.
- 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 in the lower half of the industry: ARE underperforms 66.67% of its industry peers.
- With a Return On Equity value of 0.92%, ARE is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- With a Return On Invested Capital value of 1.63%, ARE is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| 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
- Looking at the Profit Margin, with a value of 0.16%, ARE is in line with its industry, outperforming 44.44% of the companies in the same industry.
- With a Operating Margin value of 0.62%, ARE perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
- The Gross Margin of ARE (6.92%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of ARE has declined.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARE is destroying value.
- ARE has more shares outstanding than it did 1 year ago.
- ARE has more shares outstanding than it did 5 years ago.
- ARE has a worse debt/assets ratio than last year.
2.2 Solvency
- ARE has an Altman-Z score of 2.13. 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 worse Altman-Z score (2.13) than 66.67% 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 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.13 |
ROIC/WACC0.18
WACC9.01%
2.3 Liquidity
- A Current Ratio of 1.15 indicates that ARE should not have too much problems paying its short term obligations.
- ARE has a Current ratio of 1.15. This is in the better half of the industry: ARE outperforms 66.67% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 1.14, ARE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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.
- ARE shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.68%.
- Measured over the past years, ARE shows a small growth in Revenue. The Revenue has been growing by 4.16% on average per year.
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 44.25% on average over the next years. This is a very strong growth
- ARE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.59% yearly.
EPS Next Y121.25%
EPS Next 2Y89.11%
EPS Next 3Y58.17%
EPS Next 5Y44.25%
Revenue Next Year26.6%
Revenue Next 2Y15.48%
Revenue Next 3Y12.96%
Revenue Next 5Y19.59%
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
- Based on the Price/Earnings ratio of 309.18, the valuation of ARE can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ARE indicates a slightly more expensive valuation: ARE is more expensive than 66.67% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ARE to the average of the S&P500 Index (26.94), we can say ARE is valued expensively.
- A Price/Forward Earnings ratio of 20.95 indicates a rather expensive valuation of ARE.
- Based on the Price/Forward Earnings ratio, ARE is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. ARE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 309.18 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.49 |
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)2.55
PEG (5Y)N/A
EPS Next 2Y89.11%
EPS Next 3Y58.17%
5. Dividend
5.1 Amount
- ARE has a Yearly Dividend Yield of 2.29%.
- ARE's Dividend Yield is rather good when compared to the industry average which is at 0.82. ARE pays more dividend than 88.89% of the companies in the same industry.
- ARE's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
- The dividend of ARE is nicely growing with an annual growth rate of 6.05%!
- ARE has been paying a dividend for at least 10 years, so it has a reliable track record.
- ARE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.05%
Div Incr Years1
Div Non Decr Years17
5.3 Sustainability
- ARE pays out 563.75% of its income as dividend. 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 (1/20/2026, 7:00:00 PM)
34.01
-0.17 (-0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)03-05 2026-03-05/amc
Inst Owners18.74%
Inst Owner ChangeN/A
Ins Owners1.18%
Ins Owner ChangeN/A
Market Cap2.15B
Revenue(TTM)5.16B
Net Income(TTM)8.47M
Analysts69.33
Price Target34.22 (0.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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)0%
EPS NQ rev (3m)7.01%
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 | 309.18 | ||
| Fwd PE | 20.95 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.35 | ||
| P/tB | 3.3 | ||
| EV/EBITDA | 20.49 |
EPS(TTM)0.11
EY0.32%
EPS(NY)1.62
Fwd EY4.77%
FCF(TTM)-1.42
FCFYN/A
OCF(TTM)-0.53
OCFYN/A
SpS81.54
BVpS14.47
TBVpS10.3
PEG (NY)2.55
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 | 2.13 |
F-Score5
WACC9.01%
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 5Y44.25%
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 5Y19.59%
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 4 / 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 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 309.18 and the Price/Book (PB) ratio is 2.35.
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.