AECON GROUP INC (ARE.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:ARE • CA00762V1094

35.49 CAD
+0.19 (+0.54%)
Last: Feb 2, 2026, 07:00 PM
Fundamental Rating

3

Overall ARE gets a fundamental rating of 3 out of 10. We evaluated ARE against 8 industry peers in the Construction & Engineering industry. Both the profitability and financial health of ARE have multiple concerns. ARE is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

  • ARE had positive earnings in the past year.
  • In the past year ARE has reported a negative cash flow from operations.
  • ARE had positive earnings in 4 of the past 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: ARE reported negative operating cash flow in multiple 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 has a Return On Assets of 0.23%. This is in the lower half of the industry: ARE underperforms 75.00% of its industry peers.
  • ARE has a Return On Equity of 0.92%. This is in the lower half of the industry: ARE underperforms 75.00% of its industry peers.
  • With a Return On Invested Capital value of 1.63%, ARE is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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

  • The Profit Margin of ARE (0.16%) is worse than 62.50% of its industry peers.
  • Looking at the Operating Margin, with a value of 0.62%, ARE is doing worse than 62.50% of the companies in the same industry.
  • With a Gross Margin value of 6.92%, ARE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
  • 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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3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARE is destroying value.
  • Compared to 1 year ago, ARE has more shares outstanding
  • ARE has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for ARE is higher compared to a year ago.
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 2.15. 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 2.15. This is in the lower half of the industry: ARE underperforms 75.00% of its industry peers.
  • ARE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of ARE (0.43) is better than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF N/A
Altman-Z 2.15
ROIC/WACC0.18
WACC9.2%
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.
  • With a decent Current ratio value of 1.15, ARE is doing good in the industry, outperforming 62.50% of the companies in the same industry.
  • A Quick Ratio of 1.14 indicates that ARE should not have too much problems paying its short term obligations.
  • The Quick ratio of ARE (1.14) is better than 62.50% 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

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6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 110.09% 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)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 44.25% 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 5Y44.25%
Revenue Next Year26.6%
Revenue Next 2Y15.48%
Revenue Next 3Y12.96%
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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2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 322.64, which means the current valuation is very expensive for ARE.
  • 75.00% of the companies in the same industry are cheaper than ARE, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 28.41. ARE is valued rather expensively when compared to this.
  • Based on the Price/Forward Earnings ratio of 21.86, the valuation of ARE can be described as rather expensive.
  • 75.00% of the companies in the same industry are more expensive than ARE, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of ARE to the average of the S&P500 Index (25.64), we can say ARE is valued inline with the index average.
Industry RankSector Rank
PE 322.64
Fwd PE 21.86
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

  • ARE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ARE is more expensive than 62.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 21.19
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.
  • A more expensive valuation may be justified as ARE's earnings are expected to grow with 58.17% in the coming years.
PEG (NY)2.66
PEG (5Y)N/A
EPS Next 2Y89.11%
EPS Next 3Y58.17%

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6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.13%, ARE has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.89, 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 1.83, ARE has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.13%

5.2 History

  • On average, the dividend of ARE grows each year by 6.05%, which is quite nice.
  • 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)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.
  • The dividend of ARE is growing, but earnings are growing more, so the dividend growth is 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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AECON GROUP INC

TSX:ARE (2/2/2026, 7:00:00 PM)

35.49

+0.19 (+0.54%)

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 Cap2.25B
Revenue(TTM)5.16B
Net Income(TTM)8.47M
Analysts69.33
Price Target34.22 (-3.58%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.13%
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)0%
PT rev (3m)26.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.75%
EPS NY rev (1m)0%
EPS NY rev (3m)30%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.41%
Valuation
Industry RankSector Rank
PE 322.64
Fwd PE 21.86
P/S 0.44
P/FCF N/A
P/OCF N/A
P/B 2.45
P/tB 3.45
EV/EBITDA 21.19
EPS(TTM)0.11
EY0.31%
EPS(NY)1.62
Fwd EY4.57%
FCF(TTM)-1.42
FCFYN/A
OCF(TTM)-0.53
OCFYN/A
SpS81.54
BVpS14.47
TBVpS10.3
PEG (NY)2.66
PEG (5Y)N/A
Graham Number5.99
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 2.15
F-Score5
WACC9.2%
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 5Y44.25%
Revenue 1Y (TTM)25.68%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%19.98%
Revenue Next Year26.6%
Revenue Next 2Y15.48%
Revenue Next 3Y12.96%
Revenue Next 5Y19.59%
EBIT growth 1Y128.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year607.52%
EBIT Next 3Y121.36%
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 2 / 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 322.64 and the Price/Book (PB) ratio is 2.45.


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.