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AECON GROUP INC (ARE.CA) Stock Fundamental Analysis

Canada - Toronto Stock Exchange - TSX:ARE - CA00762V1094 - Common Stock

25.53 CAD
-0.12 (-0.47%)
Last: 11/21/2025, 7:00:00 PM
Fundamental Rating

4

ARE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

In the past year ARE was profitable.
ARE had a negative operating cash flow in the past year.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

1.2 Ratios

ARE's Return On Assets of 0.23% is on the low side compared to the rest of the industry. ARE is outperformed by 75.00% of its industry peers.
ARE's Return On Equity of 0.92% is on the low side compared to the rest of the industry. ARE is outperformed by 75.00% of its industry peers.
ARE's Return On Invested Capital of 1.63% is on the low side compared to the rest of the industry. ARE is outperformed by 75.00% of its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

1.3 Margins

With a Profit Margin value of 0.16%, ARE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
ARE has a worse Operating Margin (0.62%) than 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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARE is destroying value.
ARE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ARE has been increased compared to 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 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

ARE has an Altman-Z score of 2.02. 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's Altman-Z score of 2.02 is on the low side compared to the rest of the industry. ARE is outperformed by 62.50% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that ARE is not too dependend on debt financing.
ARE has a Debt to Equity ratio of 0.43. This is amongst the best in the industry. ARE outperforms 87.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF N/A
Altman-Z 2.02
ROIC/WACC0.18
WACC9.02%
ARE.CA Yearly LT Debt VS Equity VS FCFARE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

2.3 Liquidity

ARE has a Current Ratio of 1.15. 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 1.15. This is comparable to the rest of the industry: ARE outperforms 50.00% of its industry peers.
A Quick Ratio of 1.14 indicates that ARE should not have too much problems paying its short term obligations.
ARE has a Quick ratio (1.14) which is comparable to the rest of the industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

7

3. Growth

3.1 Past

ARE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.51%, which is quite impressive.
ARE shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.68%.
The Revenue has been growing slightly by 4.16% on average over the past years.
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

The Earnings Per Share is expected to grow by 44.67% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 20.10% on average over the next years. This is a very strong growth
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

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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 1 -1 2 3 4

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 141.83, ARE can be considered very expensive at the moment.
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 25.45. ARE is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 15.81, ARE is valued correctly.
Based on the Price/Forward Earnings ratio, ARE is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
ARE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
Industry RankSector Rank
PE 141.83
Fwd PE 15.81
ARE.CA Price Earnings VS Forward Price EarningsARE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

ARE's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.64
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

ARE's 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)1.18
PEG (5Y)N/A
EPS Next 2Y88.88%
EPS Next 3Y58.04%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.87%, ARE has a reasonable but not impressive dividend return.
ARE's Dividend Yield is rather good when compared to the industry average which is at 1.41. ARE pays more dividend than 87.50% of the companies in the same industry.
ARE's Dividend Yield is comparable with the S&P500 average which is at 2.45.
Industry RankSector 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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

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%
ARE.CA Yearly Income VS Free CF VS DividendARE.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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

AECON GROUP INC

TSX:ARE (11/21/2025, 7:00:00 PM)

25.53

-0.12 (-0.47%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)03-03 2026-03-03/amc
Inst Owners18.27%
Inst Owner ChangeN/A
Ins Owners0.9%
Ins Owner ChangeN/A
Market Cap1.63B
Revenue(TTM)5.16B
Net Income(TTM)8.47M
Analysts69.33
Price Target27.08 (6.07%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.87%
Yearly Dividend0.75
Dividend Growth(5Y)6.05%
DP563.75%
Div Incr Years1
Div Non Decr Years17
Ex-Date09-22 2025-09-22 (0.19)
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 RankSector Rank
PE 141.83
Fwd PE 15.81
P/S 0.32
P/FCF N/A
P/OCF N/A
P/B 1.78
P/tB 2.5
EV/EBITDA 16.64
EPS(TTM)0.18
EY0.71%
EPS(NY)1.61
Fwd EY6.32%
FCF(TTM)-1.41
FCFYN/A
OCF(TTM)-0.53
OCFYN/A
SpS80.92
BVpS14.36
TBVpS10.22
PEG (NY)1.18
PEG (5Y)N/A
Graham Number7.63
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 2.02
F-Score5
WACC9.02%
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 4 / 10 to AECON GROUP INC (ARE.CA). This can be considered as Fairly Valued.


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 141.83 and the Price/Book (PB) ratio is 1.78.


Can you provide the financial health for ARE stock?

The financial health rating of AECON GROUP INC (ARE.CA) is 3 / 10.