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

TSX:ARE • CA00762V1094

Current stock price

46.63 CAD
+0.49 (+1.06%)
Last:

This ARE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. ARE.CA Profitability Analysis

1.1 Basic Checks

  • In the past year ARE was profitable.
  • In the past year ARE had a positive 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.
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 2025 0 100M -100M 200M 300M

1.2 Ratios

  • ARE has a worse Return On Assets (0.38%) than 62.50% of its industry peers.
  • ARE has a Return On Equity of 1.64%. This is in the lower half of the industry: ARE underperforms 62.50% of its industry peers.
  • ARE has a worse Return On Invested Capital (3.00%) than 62.50% of its industry peers.
Industry RankSector 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
ARE.CA Yearly ROA, ROE, ROICARE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15

1.3 Margins

  • The Profit Margin of ARE (0.28%) is worse than 62.50% of its industry peers.
  • ARE's Profit Margin has declined in the last couple of years.
  • ARE has a Operating Margin of 1.22%. This is in the lower half of the industry: ARE underperforms 62.50% of its industry peers.
  • ARE's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 7.25%, ARE is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • ARE's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
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 2025 0 5 10

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3

2. ARE.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARE is destroying value.
  • ARE has more shares outstanding than it did 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.
ARE.CA Yearly Shares OutstandingARE.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 2.26 indicates that ARE is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • ARE has a Altman-Z score of 2.26. This is in the lower half of the industry: ARE underperforms 62.50% 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's Debt to FCF ratio of 10.21 is on the low side compared to the rest of the industry. ARE is outperformed by 75.00% 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 87.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 10.21
Altman-Z 2.26
ROIC/WACC0.34
WACC8.75%
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 2025 0 200M 400M 600M 800M 1B

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 50.00% of its industry peers.
  • A Quick Ratio of 1.10 indicates that ARE should not have too much problems paying its short term obligations.
  • The Quick ratio of ARE (1.10) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 1.1
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 2025 500M 1B 1.5B 2B 2.5B

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

8

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.
  • The earnings per share for ARE have been decreasing by -18.39% on average. This is quite bad
  • ARE shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.09%.
  • The Revenue has been growing by 8.32% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 79.32% 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 17.79% yearly.
EPS Next Y277.55%
EPS Next 2Y117.1%
EPS Next 3Y102.83%
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.
  • 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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2

4. ARE.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 111.02, which means the current valuation is very expensive for ARE.
  • Based on the Price/Earnings ratio, ARE is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Earnings ratio of 27.34, ARE is valued quite expensively.
  • The Price/Forward Earnings ratio is 29.41, which means the current valuation is very expensive for ARE.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE indicates a slightly more expensive valuation: ARE is more expensive than 62.50% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.18, ARE is valued a bit cheaper.
Industry RankSector Rank
PE 111.02
Fwd PE 29.41
ARE.CA Price Earnings VS Forward Price EarningsARE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • 62.50% of the companies in the same industry are cheaper than ARE, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, ARE is valued a bit more expensive than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 54.29
EV/EBITDA 21.26
ARE.CA Per share dataARE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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.
  • A more expensive valuation may be justified as ARE's earnings are expected to grow with 102.83% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y117.1%
EPS Next 3Y102.83%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. ARE.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.69%, ARE has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.79, ARE pays a better dividend. On top of this ARE pays more dividend than 87.50% of the companies listed 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 1.69%

5.2 History

  • The dividend of ARE has a limited annual growth rate of 4.01%.
  • ARE has paid a dividend for at least 10 years, which is 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
ARE.CA Yearly Dividends per shareARE.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • ARE pays out 315.92% 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.
DP315.92%
EPS Next 2Y117.1%
EPS Next 3Y102.83%
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 2025 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 (4/14/2026, 7:00:00 PM)

46.63

+0.49 (+1.06%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)03-05
Earnings (Next)04-28
Inst Owners20.63%
Inst Owner ChangeN/A
Ins Owners0.98%
Ins Owner ChangeN/A
Market Cap3.19B
Revenue(TTM)5.43B
Net Income(TTM)15.16M
Analysts69.33
Price Target45.53 (-2.36%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.69%
Yearly Dividend0.75
Dividend Growth(5Y)4.01%
DP315.92%
Div Incr Years0
Div Non Decr Years18
Ex-Date03-23
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)25.34%
PT rev (3m)33.06%
EPS NQ rev (1m)11.55%
EPS NQ rev (3m)-205.27%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)4.47%
Revenue NY rev (3m)4.77%
Valuation
Industry RankSector Rank
PE 111.02
Fwd PE 29.41
P/S 0.59
P/FCF 54.29
P/OCF 25.22
P/B 3.46
P/tB 4.78
EV/EBITDA 21.26
EPS(TTM)0.42
EY0.9%
EPS(NY)1.59
Fwd EY3.4%
FCF(TTM)0.86
FCFY1.84%
OCF(TTM)1.85
OCFY3.97%
SpS79.37
BVpS13.46
TBVpS9.75
PEG (NY)0.4
PEG (5Y)N/A
Graham Number11.28
Profitability
Industry RankSector 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 RankSector 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 2.26
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 Y277.55%
EPS Next 2Y117.1%
EPS Next 3Y102.83%
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 Year465.93%
EBIT Next 3Y107.92%
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 2 / 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 111.02 and the Price/Book (PB) ratio is 3.46.


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 277.55% in the next year.