AECON GROUP INC (ARE.CA) Fundamental Analysis & Valuation
TSX:ARE • CA00762V1094
Current stock price
42.65 CAD
+0.45 (+1.07%)
Last:
This ARE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ARE.CA Profitability Analysis
1.1 Basic Checks
- ARE had positive earnings in the past year.
- ARE had a positive 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.
1.2 Ratios
- The Return On Assets of ARE (0.38%) is worse than 71.43% of its industry peers.
- The Return On Equity of ARE (1.64%) is worse than 71.43% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.00%, ARE is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 1.64% | ||
| ROIC | 3% |
ROA(3y)1.2%
ROA(5y)1.19%
ROE(3y)3.54%
ROE(5y)3.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Profit Margin value of 0.28%, ARE is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of ARE has declined.
- ARE has a worse Operating Margin (1.22%) than 71.43% of its industry peers.
- ARE's Operating Margin has declined in the last couple of years.
- ARE has a Gross Margin of 7.25%. This is comparable to the rest of the industry: ARE outperforms 42.86% of its industry peers.
- In the last couple of years the Gross Margin of ARE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.22% | ||
| PM (TTM) | 0.28% | ||
| GM | 7.25% |
OM growth 3Y-6.37%
OM growth 5Y-19.55%
PM growth 3Y-24.45%
PM growth 5Y-35.06%
GM growth 3Y-1.46%
GM growth 5Y-8.02%
2. ARE.CA Health Analysis
2.1 Basic Checks
- ARE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- ARE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.17 indicates that ARE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ARE's Altman-Z score of 2.17 is on the low side compared to the rest of the industry. ARE is outperformed by 71.43% of its industry peers.
- The Debt to FCF ratio of ARE is 10.21, which is on the high side as it means it would take ARE, 10.21 years of fcf income to pay off all of its debts.
- ARE has a worse Debt to FCF ratio (10.21) than 71.43% of its industry peers.
- ARE has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
- ARE has a Debt to Equity ratio of 0.40. This is amongst the best in the industry. ARE outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 10.21 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.34
WACC8.75%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that ARE should not have too much problems paying its short term obligations.
- ARE's Current ratio of 1.10 is in line compared to the rest of the industry. ARE outperforms 42.86% of its industry peers.
- ARE has a Quick Ratio of 1.10. 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 (1.10) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
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 140.78%, which is quite impressive.
- ARE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.39% yearly.
- Looking at the last year, ARE shows a very strong growth in Revenue. The Revenue has grown by 28.09%.
- ARE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.32% yearly.
EPS 1Y (TTM)140.78%
EPS 3Y9.49%
EPS 5Y-18.39%
EPS Q2Q%147.62%
Revenue 1Y (TTM)28.09%
Revenue growth 3Y4.99%
Revenue growth 5Y8.32%
Sales Q2Q%21.64%
3.2 Future
- ARE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 79.32% yearly.
- Based on estimates for the next years, ARE will show a quite strong growth in Revenue. The Revenue will grow by 17.79% on average per year.
EPS Next Y284.46%
EPS Next 2Y118.21%
EPS Next 3Y103.2%
EPS Next 5Y79.32%
Revenue Next Year9.98%
Revenue Next 2Y7.55%
Revenue Next 3Y18.18%
Revenue Next 5Y17.79%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. ARE.CA Valuation Analysis
4.1 Price/Earnings Ratio
- ARE is valuated quite expensively with a Price/Earnings ratio of 101.55.
- Compared to the rest of the industry, the Price/Earnings ratio of ARE indicates a slightly more expensive valuation: ARE is more expensive than 71.43% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.17, ARE is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 26.41, the valuation of ARE can be described as expensive.
- 71.43% 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 23.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.55 | ||
| Fwd PE | 26.41 |
4.2 Price Multiples
- 71.43% of the companies in the same industry are cheaper than ARE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.46 | ||
| EV/EBITDA | 18.79 |
4.3 Compensation for Growth
- ARE's 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 103.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y118.21%
EPS Next 3Y103.2%
5. ARE.CA Dividend Analysis
5.1 Amount
- ARE has a Yearly Dividend Yield of 1.84%.
- Compared to an average industry Dividend Yield of 0.96, 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 comparable with the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
- The dividend of ARE has a limited annual growth rate of 4.01%.
- 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)4.01%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
- 315.92% 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.
DP315.92%
EPS Next 2Y118.21%
EPS Next 3Y103.2%
ARE.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:ARE (4/2/2026, 7:00:00 PM)
42.65
+0.45 (+1.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)03-05 2026-03-05/amc
Earnings (Next)04-21 2026-04-21
Inst Owners21.03%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner ChangeN/A
Market Cap2.73B
Revenue(TTM)5.43B
Net Income(TTM)15.16M
Analysts69.33
Price Target43.39 (1.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0.75
Dividend Growth(5Y)4.01%
DP315.92%
Div Incr Years0
Div Non Decr Years18
Ex-Date03-23 2026-03-23 (0.1925)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.65%
Min EPS beat(2)34.06%
Max EPS beat(2)59.23%
EPS beat(4)2
Avg EPS beat(4)-101.49%
Min EPS beat(4)-260.38%
Max EPS beat(4)59.23%
EPS beat(8)5
Avg EPS beat(8)-47.44%
EPS beat(12)8
Avg EPS beat(12)7.76%
EPS beat(16)11
Avg EPS beat(16)-1.53%
Revenue beat(2)2
Avg Revenue beat(2)9.03%
Min Revenue beat(2)8.99%
Max Revenue beat(2)9.07%
Revenue beat(4)4
Avg Revenue beat(4)12.55%
Min Revenue beat(4)8.99%
Max Revenue beat(4)17.47%
Revenue beat(8)6
Avg Revenue beat(8)3.04%
Revenue beat(12)8
Avg Revenue beat(12)1.51%
Revenue beat(16)12
Avg Revenue beat(16)4.02%
PT rev (1m)19.44%
PT rev (3m)26.8%
EPS NQ rev (1m)-114.81%
EPS NQ rev (3m)-205.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-1.46%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)4.47%
Revenue NY rev (3m)4.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.55 | ||
| Fwd PE | 26.41 | ||
| P/S | 0.5 | ||
| P/FCF | 46.46 | ||
| P/OCF | 21.58 | ||
| P/B | 2.96 | ||
| P/tB | 4.09 | ||
| EV/EBITDA | 18.79 |
EPS(TTM)0.42
EY0.98%
EPS(NY)1.61
Fwd EY3.79%
FCF(TTM)0.92
FCFY2.15%
OCF(TTM)1.98
OCFY4.63%
SpS84.82
BVpS14.39
TBVpS10.42
PEG (NY)0.36
PEG (5Y)N/A
Graham Number11.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 1.64% | ||
| ROCE | 4.79% | ||
| ROIC | 3% | ||
| ROICexc | 3.22% | ||
| ROICexgc | 4.01% | ||
| OM | 1.22% | ||
| PM (TTM) | 0.28% | ||
| GM | 7.25% | ||
| FCFM | 1.08% |
ROA(3y)1.2%
ROA(5y)1.19%
ROE(3y)3.54%
ROE(5y)3.85%
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 3Y-3.12%
ROICexgc growth 5Y-13.33%
ROICexc growth 3Y6.8%
ROICexc growth 5Y-8.38%
OM growth 3Y-6.37%
OM growth 5Y-19.55%
PM growth 3Y-24.45%
PM growth 5Y-35.06%
GM growth 3Y-1.46%
GM growth 5Y-8.02%
F-Score7
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 10.21 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 63.87% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 1.87 | ||
| Cash Conversion | 73.42% | ||
| Profit Quality | 387.88% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.17 |
F-Score7
WACC8.75%
ROIC/WACC0.34
Cap/Depr(3y)51.62%
Cap/Depr(5y)49.16%
Cap/Sales(3y)1.01%
Cap/Sales(5y)0.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)140.78%
EPS 3Y9.49%
EPS 5Y-18.39%
EPS Q2Q%147.62%
EPS Next Y284.46%
EPS Next 2Y118.21%
EPS Next 3Y103.2%
EPS Next 5Y79.32%
Revenue 1Y (TTM)28.09%
Revenue growth 3Y4.99%
Revenue growth 5Y8.32%
Sales Q2Q%21.64%
Revenue Next Year9.98%
Revenue Next 2Y7.55%
Revenue Next 3Y18.18%
Revenue Next 5Y17.79%
EBIT growth 1Y155.92%
EBIT growth 3Y-1.7%
EBIT growth 5Y-12.85%
EBIT Next Year449.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y228.77%
FCF growth 3YN/A
FCF growth 5Y-15.15%
OCF growth 1Y1566.27%
OCF growth 3YN/A
OCF growth 5Y-14.24%
AECON GROUP INC / ARE.CA Fundamental Analysis 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 3 / 10 to AECON GROUP INC (ARE.CA). This can be considered as Overvalued.
How profitable is AECON GROUP INC (ARE.CA) stock?
AECON GROUP INC (ARE.CA) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for ARE stock?
The Price/Earnings (PE) ratio for AECON GROUP INC (ARE.CA) is 101.55 and the Price/Book (PB) ratio is 2.96.
What is the earnings growth outlook for AECON GROUP INC?
The Earnings per Share (EPS) of AECON GROUP INC (ARE.CA) is expected to grow by 284.46% in the next year.