AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARE - CA00762V1094 - Common Stock
25.53 CAD
-0.12 (-0.47%)
Taking everything into account, ARE scores 4 out of 10 in our fundamental rating. ARE was compared to 8 industry peers in the Construction & Engineering industry. ARE may be in some trouble as it scores bad on both profitability and health. ARE is growing strongly while it is still valued neutral. This is a good combination! ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ARE had positive earnings in the past year.
ARE had a negative operating cash flow in the past year.
ARE had positive earnings in 4 of the past 5 years.
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 has a worse Return On Assets (0.23%) than 75.00% of its industry peers.
ARE has a worse Return On Equity (0.92%) than 75.00% 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 75.00% 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
ARE has a Profit Margin of 0.16%. This is in the lower half of the industry: ARE underperforms 62.50% of its industry peers.
Looking at the Operating Margin, with a value of 0.62%, ARE is doing worse than 62.50% of the companies in the same industry.
The Gross Margin of ARE (6.92%) is worse than 62.50% 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
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.
Compared to 5 years ago, ARE has more shares outstanding
Compared to 1 year ago, ARE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.02 indicates that ARE is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARE has a worse Altman-Z score (2.02) than 62.50% 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's Debt to Equity ratio of 0.43 is amongst the best of the industry. ARE outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.02 |
ROIC/WACC0.18
WACC9.02%
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.
ARE has a Current ratio (1.15) which is comparable to the rest of the 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 has a Quick ratio of 1.14. This is comparable to the rest of the industry: ARE outperforms 50.00% 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 116.51%, which is quite impressive.
Looking at the last year, ARE shows a very strong growth in Revenue. The Revenue has grown by 25.68%.
The Revenue has been growing slightly by 4.16% on average over the past years.
EPS 1Y (TTM)116.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-29.41%
Revenue 1Y (TTM)25.68%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%19.98%
3.2 Future
ARE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.67% yearly.
The Revenue is expected to grow by 20.10% on average over the next years. This is a very strong growth
EPS Next Y120.59%
EPS Next 2Y88.88%
EPS Next 3Y58.04%
EPS Next 5Y44.67%
Revenue Next Year26.53%
Revenue Next 2Y15.46%
Revenue Next 3Y12.93%
Revenue Next 5Y20.1%
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
The Price/Earnings ratio is 141.83, which means the current valuation is very expensive for 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 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARE to the average of the S&P500 Index (25.45), we can say ARE is valued expensively.
With a Price/Forward Earnings ratio of 15.81, ARE is valued correctly.
Based on the Price/Forward Earnings ratio, ARE is valued cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, ARE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.83 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
ARE's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.64 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ARE's earnings are expected to grow with 58.04% in the coming years.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y88.88%
EPS Next 3Y58.04%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.41, ARE pays a better dividend. On top of this ARE pays more dividend than 87.50% of the companies listed in the same industry.
ARE's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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
563.75% of the earnings are spent on dividend by ARE. This is not a sustainable payout ratio.
The dividend of ARE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP563.75%
EPS Next 2Y88.88%
EPS Next 3Y58.04%
TSX:ARE (11/21/2025, 7:00:00 PM)
25.53
-0.12 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners18.27%
Inst Owner ChangeN/A
Ins Owners0.9%
Ins Owner ChangeN/A
Market Cap1.63B
Revenue(TTM)5.16B
Net Income(TTM)8.47M
Analysts69.33
Price Target34.12 (33.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend0.75
Dividend Growth(5Y)6.05%
DP563.75%
Div Incr Years1
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-104.31%
Min EPS beat(2)-260.38%
Max EPS beat(2)51.77%
EPS beat(4)1
Avg EPS beat(4)-124.33%
Min EPS beat(4)-260.38%
Max EPS beat(4)51.77%
EPS beat(8)4
Avg EPS beat(8)-57.8%
EPS beat(12)8
Avg EPS beat(12)6.46%
EPS beat(16)10
Avg EPS beat(16)-7.87%
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)12.74%
PT rev (3m)17.27%
EPS NQ rev (1m)3.5%
EPS NQ rev (3m)-6.47%
EPS NY rev (1m)26%
EPS NY rev (3m)-80.89%
Revenue NQ rev (1m)4.48%
Revenue NQ rev (3m)4.48%
Revenue NY rev (1m)3.36%
Revenue NY rev (3m)7.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.83 | ||
| Fwd PE | 15.81 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.78 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 16.64 |
EPS(TTM)0.18
EY0.71%
EPS(NY)1.61
Fwd EY6.32%
FCF(TTM)-1.41
FCFYN/A
OCF(TTM)-0.53
OCFYN/A
SpS80.92
BVpS14.36
TBVpS10.22
PEG (NY)1.18
PEG (5Y)N/A
Graham Number7.63
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 | 2.02 |
F-Score5
WACC9.02%
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)116.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-29.41%
EPS Next Y120.59%
EPS Next 2Y88.88%
EPS Next 3Y58.04%
EPS Next 5Y44.67%
Revenue 1Y (TTM)25.68%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%19.98%
Revenue Next Year26.53%
Revenue Next 2Y15.46%
Revenue Next 3Y12.93%
Revenue Next 5Y20.1%
EBIT growth 1Y128.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year618.02%
EBIT Next 3Y117.4%
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.
Can you provide the valuation status for AECON GROUP INC?
ChartMill assigns a valuation rating of 4 / 10 to AECON GROUP INC (ARE.CA). This can be considered as Fairly Valued.
What is the profitability of ARE stock?
AECON GROUP INC (ARE.CA) has a profitability rating of 1 / 10.
Can you provide the PE and PB ratios for ARE stock?
The Price/Earnings (PE) ratio for AECON GROUP INC (ARE.CA) is 141.83 and the Price/Book (PB) ratio is 1.78.
Can you provide the financial health for ARE stock?
The financial health rating of AECON GROUP INC (ARE.CA) is 3 / 10.