AECON GROUP INC (ARE.CA) Fundamental Analysis & Valuation
TSX:ARE • CA00762V1094
Current stock price
43.52 CAD
+1.49 (+3.55%)
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
- In the past year ARE was profitable.
- 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
- ARE has a worse Return On Assets (0.38%) than 71.43% of its industry peers.
- Looking at the Return On Equity, with a value of 1.64%, ARE is doing worse than 71.43% of the companies in the same industry.
- ARE's Return On Invested Capital of 3.00% is on the low side compared to the rest of the industry. ARE is outperformed by 71.43% of its industry peers.
| 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
- Looking at the Profit Margin, with a value of 0.28%, ARE is doing worse than 71.43% of the companies in the same industry.
- 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.
- In the last couple of years the Operating Margin of ARE has declined.
- ARE has a Gross Margin (7.25%) which is in line with 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.
- 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 2.18. 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 worse Altman-Z score (2.18) than 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 Debt to FCF ratio of 10.21. This is in the lower half of the industry: ARE underperforms 71.43% of its industry peers.
- A Debt/Equity ratio of 0.40 indicates that ARE is not too dependend on debt financing.
- ARE's Debt to Equity ratio of 0.40 is amongst the best of the industry. ARE outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 10.21 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.34
WACC8.81%
2.3 Liquidity
- ARE has a Current 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.
- Looking at the Current ratio, with a value of 1.10, ARE is in line with its industry, outperforming 42.86% of the companies in the same industry.
- 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's Quick ratio of 1.10 is in line compared to the rest of the industry. ARE outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. ARE.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 140.78% over the past year.
- ARE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.39% yearly.
- ARE shows a strong growth in Revenue. In the last year, 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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. ARE.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 103.62, ARE can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, ARE is valued a bit more expensive than 71.43% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.91. ARE is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 26.95, the valuation of ARE can be described as expensive.
- ARE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ARE is more expensive than 71.43% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.68. ARE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 103.62 | ||
| Fwd PE | 26.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARE is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
- 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 | 47.41 | ||
| EV/EBITDA | 19.11 |
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 103.20% in the coming years.
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%. Purely for dividend investing, there may be better candidates out there.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.89, ARE has a dividend comparable with the average S&P500 company.
| 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 paid a dividend for at least 10 years, which is 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)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.
- ARE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP315.92%
EPS Next 2Y118.21%
EPS Next 3Y103.2%
ARE.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:ARE (4/8/2026, 7:00:00 PM)
43.52
+1.49 (+3.55%)
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 Cap2.79B
Revenue(TTM)5.43B
Net Income(TTM)15.16M
Analysts69.33
Price Target43.39 (-0.3%)
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 | 103.62 | ||
| Fwd PE | 26.95 | ||
| P/S | 0.51 | ||
| P/FCF | 47.41 | ||
| P/OCF | 22.02 | ||
| P/B | 3.03 | ||
| P/tB | 4.17 | ||
| EV/EBITDA | 19.11 |
EPS(TTM)0.42
EY0.97%
EPS(NY)1.61
Fwd EY3.71%
FCF(TTM)0.92
FCFY2.11%
OCF(TTM)1.98
OCFY4.54%
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 | 2.18 |
F-Score7
WACC8.81%
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 103.62 and the Price/Book (PB) ratio is 3.03.
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.