AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
Canada - TSX:ARE - CA00762V1094 - Common Stock
26.85 CAD
+1.02 (+3.95%)
We assign a fundamental rating of 4 out of 10 to ARE. 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!
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.
Of the past 5 years ARE 4 years were profitable.
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
Looking at the Return On Assets, with a value of 0.23%, ARE is doing worse than 75.00% of the companies in the same industry.
With a Return On Equity value of 0.92%, ARE is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
ARE has a Return On Invested Capital of 1.63%. This is in the lower half of the industry: ARE underperforms 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 worse Profit Margin (0.16%) than 62.50% of its industry peers.
ARE's Operating Margin of 0.62% is on the low side compared to the rest of the industry. ARE is outperformed by 62.50% of its industry peers.
ARE has a Gross Margin of 6.92%. This is in the lower half of the industry: ARE underperforms 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
ARE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ARE has more shares outstanding
The number of shares outstanding for ARE has been increased compared to 5 years ago.
Compared to 1 year ago, ARE has a worse debt to assets ratio.
2.2 Solvency
ARE has an Altman-Z score of 2.03. 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.
Looking at the Altman-Z score, with a value of 2.03, ARE is doing worse than 62.50% of the companies in the same industry.
ARE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.43, ARE belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.03 |
ROIC/WACC0.18
WACC9.05%
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 comparable 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 has a Quick ratio (1.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 116.51% over the past year.
The Revenue has grown by 25.68% in the past year. This is a very strong growth!
ARE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.16% yearly.
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.
ARE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.10% yearly.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 149.17 indicates a quite expensive valuation of 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 (25.47), we can say ARE is valued expensively.
ARE is valuated correctly with a Price/Forward Earnings ratio of 16.63.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE indicates a rather cheap valuation: ARE is cheaper than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.42, ARE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 149.17 | ||
| Fwd PE | 16.63 |
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 | 17.21 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ARE's earnings are expected to grow with 58.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)N/A
EPS Next 2Y88.88%
EPS Next 3Y58.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.87%, ARE has a reasonable but not impressive dividend return.
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.
Compared to an average S&P500 Dividend Yield of 2.44, ARE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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
5.3 Sustainability
563.75% of the earnings are spent on dividend by ARE. 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 2Y88.88%
EPS Next 3Y58.04%
TSX:ARE (11/19/2025, 7:00:00 PM)
26.85
+1.02 (+3.95%)
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 Cap1.71B
Revenue(TTM)5.16B
Net Income(TTM)8.47M
Analysts69.33
Price Target27.08 (0.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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 | 149.17 | ||
| Fwd PE | 16.63 | ||
| P/S | 0.33 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.87 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 17.21 |
EPS(TTM)0.18
EY0.67%
EPS(NY)1.61
Fwd EY6.01%
FCF(TTM)-1.41
FCFYN/A
OCF(TTM)-0.53
OCFYN/A
SpS80.92
BVpS14.36
TBVpS10.22
PEG (NY)1.24
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 | 2.03 |
F-Score5
WACC9.05%
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 3 / 10 to AECON GROUP INC (ARE.CA). This can be considered as Overvalued.
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 149.17 and the Price/Book (PB) ratio is 1.87.
Can you provide the financial health for ARE stock?
The financial health rating of AECON GROUP INC (ARE.CA) is 3 / 10.