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

TSX:ARE • CA00762V1094

37.33 CAD
-0.73 (-1.92%)
Last: Mar 4, 2026, 07:00 PM
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This ARE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ARE. ARE was compared to 8 industry peers in the Construction & Engineering industry. ARE has a bad profitability rating. Also its financial health evaluation is rather negative. ARE is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

1

1. ARE.CA Profitability Analysis

1.1 Basic Checks

  • In the past year ARE was profitable.
  • ARE had a negative operating cash flow in the past year.
  • 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.
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 0 100M -100M 200M 300M

1.2 Ratios

  • ARE's Return On Assets of 0.23% is on the low side compared to the rest of the industry. ARE is outperformed by 75.00% of its industry peers.
  • Looking at the Return On Equity, with a value of 0.92%, ARE is doing worse than 75.00% of the companies in the same industry.
  • ARE has a worse Return On Invested Capital (1.63%) than 75.00% of its industry peers.
Industry RankSector 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
ARE.CA Yearly ROA, ROE, ROICARE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

1.3 Margins

  • With a Profit Margin value of 0.16%, ARE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
  • With a Operating Margin value of 0.62%, ARE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
  • 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 RankSector 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%
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 0 5 10

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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • ARE has a worse debt/assets ratio than last year.
ARE.CA Yearly Shares OutstandingARE.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B

2.2 Solvency

  • ARE has an Altman-Z score of 2.18. 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 2.18. This is in the lower half of the industry: ARE underperforms 75.00% of its industry peers.
  • A Debt/Equity ratio of 0.43 indicates that ARE is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.43, ARE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF N/A
Altman-Z 2.18
ROIC/WACC0.18
WACC9.09%
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 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 1.15 indicates that ARE should not have too much problems paying its short term obligations.
  • ARE's Current ratio of 1.15 is in line compared to the rest of the industry. ARE outperforms 50.00% 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.
  • ARE's Quick ratio of 1.14 is in line compared to the rest of the industry. ARE outperforms 50.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.15
Quick Ratio 1.14
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 500M 1B 1.5B 2B

More info and screens

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

6

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 110.09%, which is quite impressive.
  • ARE shows a strong growth in Revenue. In the last year, 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)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 43.96% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 19.59% on average over the next years. This is quite good.
EPS Next Y121.25%
EPS Next 2Y89.11%
EPS Next 3Y58.17%
EPS Next 5Y43.96%
Revenue Next Year27.21%
Revenue Next 2Y15.69%
Revenue Next 3Y12.93%
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.
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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1

4. ARE.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 339.36 indicates a quite expensive valuation of ARE.
  • ARE's Price/Earnings ratio is a bit more expensive when compared to the industry. ARE is more expensive than 75.00% of the companies in the same industry.
  • ARE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.03.
  • ARE is valuated rather expensively with a Price/Forward Earnings ratio of 22.99.
  • 62.50% of the companies in the same industry are cheaper than ARE, based on the Price/Forward Earnings ratio.
  • ARE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.11.
Industry RankSector Rank
PE 339.36
Fwd PE 22.99
ARE.CA Price Earnings VS Forward Price EarningsARE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARE indicates a slightly more expensive valuation: ARE is more expensive than 62.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 22.27
ARE.CA Per share dataARE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • ARE's earnings are expected to grow with 58.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.8
PEG (5Y)N/A
EPS Next 2Y89.11%
EPS Next 3Y58.17%

More info and screens

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 1.97%. 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 0.87. ARE pays more dividend than 87.50% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, ARE has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.97%

5.2 History

  • On average, the dividend of ARE grows each year by 6.05%, which is quite nice.
  • ARE has been paying a dividend for at least 10 years, so it has 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
ARE.CA Yearly Dividends per shareARE.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

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%
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 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 (3/4/2026, 7:00:00 PM)

37.33

-0.73 (-1.92%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)10-29
Earnings (Next)03-05
Inst Owners18.74%
Inst Owner ChangeN/A
Ins Owners1.18%
Ins Owner ChangeN/A
Market Cap2.39B
Revenue(TTM)5.16B
Net Income(TTM)8.47M
Analysts69.33
Price Target36.33 (-2.68%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.97%
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)6.17%
PT rev (3m)6.45%
EPS NQ rev (1m)-3.77%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)0%
EPS NY rev (3m)3.18%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.54%
Valuation
Industry RankSector Rank
PE 339.36
Fwd PE 22.99
P/S 0.46
P/FCF N/A
P/OCF N/A
P/B 2.61
P/tB 3.67
EV/EBITDA 22.27
EPS(TTM)0.11
EY0.29%
EPS(NY)1.62
Fwd EY4.35%
FCF(TTM)-1.4
FCFYN/A
OCF(TTM)-0.53
OCFYN/A
SpS80.54
BVpS14.3
TBVpS10.17
PEG (NY)2.8
PEG (5Y)N/A
Graham Number5.95
Profitability
Industry RankSector 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 RankSector 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 2.18
F-Score5
WACC9.09%
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 5Y43.96%
Revenue 1Y (TTM)25.68%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%19.98%
Revenue Next Year27.21%
Revenue Next 2Y15.69%
Revenue Next 3Y12.93%
Revenue Next 5Y19.59%
EBIT growth 1Y128.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year605.21%
EBIT Next 3Y120.54%
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 1 / 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 339.36 and the Price/Book (PB) ratio is 2.61.


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.