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

TSX:ARE • CA00762V1094

Current stock price

47.51 CAD
+1.04 (+2.24%)
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

  • 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.
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

  • 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 has a Return On Equity of 1.64%. This is in the lower half of the industry: ARE underperforms 71.43% of its industry peers.
  • 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 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 71.43% of its industry peers.
  • ARE's Profit Margin has declined in the last couple of years.
  • With a Operating Margin value of 1.22%, ARE is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
  • In the last couple of years the Operating Margin of ARE has declined.
  • With a Gross Margin value of 7.25%, ARE perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ARE has declined.
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

  • ARE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • ARE has more shares outstanding than it did 1 year ago.
  • 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 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 worse Altman-Z score (2.26) 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.
  • Looking at the Debt to FCF ratio, with a value of 10.21, ARE is doing worse than 71.43% of the companies in the same industry.
  • A Debt/Equity ratio of 0.40 indicates that ARE is not too dependend on debt financing.
  • ARE has a better Debt to Equity ratio (0.40) than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 10.21
Altman-Z 2.26
ROIC/WACC0.31
WACC9.76%
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

  • 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.
  • ARE has a Current ratio of 1.10. This is comparable to the rest of the industry: ARE outperforms 42.86% of its industry peers.
  • 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 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

  • The Earnings Per Share has grown by an impressive 140.78% over the past year.
  • The earnings per share for ARE have been decreasing by -18.39% on average. This is quite bad
  • The Revenue has grown by 28.09% in the past year. This is a very strong growth!
  • 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

  • ARE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 79.32% yearly.
  • 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 Year10.02%
Revenue Next 2Y7.54%
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

  • Based on the Price/Earnings ratio of 113.12, the valuation of ARE can be described as expensive.
  • 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.
  • The average S&P500 Price/Earnings ratio is at 27.47. ARE is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 29.96, which means the current valuation is very expensive for ARE.
  • 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.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.62, ARE is valued a bit more expensive.
Industry RankSector Rank
PE 113.12
Fwd PE 29.96
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

  • ARE's Enterprise Value to EBITDA 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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARE indicates a slightly more expensive valuation: ARE is more expensive than 71.43% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 55.31
EV/EBITDA 21.39
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

  • ARE's 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 102.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y117.1%
EPS Next 3Y102.83%

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6

5. ARE.CA Dividend Analysis

5.1 Amount

  • ARE has a Yearly Dividend Yield of 1.66%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.91, 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 1.81, ARE has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.66%

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 (4/23/2026, 7:00:00 PM)

47.51

+1.04 (+2.24%)

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 Cap3.25B
Revenue(TTM)5.43B
Net Income(TTM)15.16M
Analysts69.33
Price Target46.09 (-2.99%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.66%
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)26.87%
PT rev (3m)34.69%
EPS NQ rev (1m)-9.37%
EPS NQ rev (3m)-231.6%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)2.4%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)4.51%
Revenue NY rev (3m)4.81%
Valuation
Industry RankSector Rank
PE 113.12
Fwd PE 29.96
P/S 0.6
P/FCF 55.31
P/OCF 25.69
P/B 3.53
P/tB 4.87
EV/EBITDA 21.39
EPS(TTM)0.42
EY0.88%
EPS(NY)1.59
Fwd EY3.34%
FCF(TTM)0.86
FCFY1.81%
OCF(TTM)1.85
OCFY3.89%
SpS79.37
BVpS13.46
TBVpS9.75
PEG (NY)0.41
PEG (5Y)N/A
Graham Number11.279 (-76.26%)
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
WACC9.76%
ROIC/WACC0.31
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 Year10.02%
Revenue Next 2Y7.54%
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 113.12 and the Price/Book (PB) ratio is 3.53.


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.