AECON GROUP INC (ARE.CA) Fundamental Analysis & Valuation
TSX:ARE • CA00762V1094
Current stock price
45.65 CAD
+2.13 (+4.89%)
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.
- 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.
1.2 Ratios
- With a Return On Assets value of 0.38%, ARE is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- ARE's Return On Equity of 1.64% is on the low side compared to the rest of the industry. ARE is outperformed by 71.43% of its industry peers.
- ARE has a worse Return On Invested Capital (3.00%) than 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
- ARE has a Profit Margin of 0.28%. This is in the lower half of the industry: ARE underperforms 71.43% of its industry peers.
- ARE's Profit Margin has declined in the last couple of years.
- 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 (7.25%) which is comparable to the rest of the industry.
- ARE's Gross Margin has declined in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARE is destroying value.
- Compared to 1 year ago, ARE has more shares outstanding
- Compared to 5 years ago, ARE has more shares outstanding
- Compared to 1 year ago, ARE has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.21 indicates that ARE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ARE has a worse Altman-Z score (2.21) than 71.43% of its industry peers.
- ARE has a debt to FCF ratio of 10.21. This is a negative value and a sign of low solvency as ARE would need 10.21 years to pay back of 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 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 | 2.21 |
ROIC/WACC0.34
WACC8.83%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that ARE should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.10, ARE perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- A Quick Ratio of 1.10 indicates that ARE should not have too much problems paying its short term obligations.
- ARE has a Quick ratio (1.10) which is in line with its industry peers.
| 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.
- Measured over the past years, ARE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.39% on average per year.
- Looking at the last year, ARE shows a very strong growth in Revenue. 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
- Based on estimates for the next years, ARE will show a very strong growth in Earnings Per Share. The EPS will grow by 79.32% on average per year.
- 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 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.
- 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
- A Price/Earnings ratio of 108.69 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 71.43% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.78, ARE is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 28.27, 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.
- When comparing the Price/Forward Earnings ratio of ARE to the average of the S&P500 Index (23.54), we can say ARE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 108.69 | ||
| Fwd PE | 28.27 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARE is valued a bit more expensive than 71.43% of the companies in the same industry.
- 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 | 49.73 | ||
| EV/EBITDA | 19.9 |
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.
- ARE's earnings are expected to grow with 103.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
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%.
- ARE's Dividend Yield is rather good when compared to the industry average which is at 0.96. ARE pays more dividend than 85.71% of the companies 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 (4/9/2026, 7:00:00 PM)
45.65
+2.13 (+4.89%)
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 Cap2.92B
Revenue(TTM)5.43B
Net Income(TTM)15.16M
Analysts69.33
Price Target43.39 (-4.95%)
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 | 108.69 | ||
| Fwd PE | 28.27 | ||
| P/S | 0.54 | ||
| P/FCF | 49.73 | ||
| P/OCF | 23.1 | ||
| P/B | 3.17 | ||
| P/tB | 4.38 | ||
| EV/EBITDA | 19.9 |
EPS(TTM)0.42
EY0.92%
EPS(NY)1.61
Fwd EY3.54%
FCF(TTM)0.92
FCFY2.01%
OCF(TTM)1.98
OCFY4.33%
SpS84.82
BVpS14.39
TBVpS10.42
PEG (NY)0.38
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 | 2.21 |
F-Score7
WACC8.83%
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 108.69 and the Price/Book (PB) ratio is 3.17.
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.