AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
Canada - TSX:ARE - CA00762V1094 - Common Stock
25.53 CAD
-0.12 (-0.47%)
Overall ARE gets a fundamental rating of 4 out of 10. We evaluated ARE against 8 industry peers in the Construction & Engineering industry. ARE has a bad profitability rating. Also its financial health evaluation is rather negative. ARE is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year ARE was profitable.
In the past year ARE has reported a negative 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 0.23%, ARE is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 0.92%, ARE is doing worse than 75.00% of the companies in the same industry.
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 Rank | Sector 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
1.3 Margins
The Profit Margin of ARE (0.16%) is worse than 62.50% of its industry peers.
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.
ARE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, ARE has a worse debt to assets ratio.
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 has a Altman-Z score of 2.02. This is in the lower half of the industry: ARE underperforms 62.50% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that ARE is not too dependend on debt financing.
The Debt to Equity ratio of ARE (0.43) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.02 |
ROIC/WACC0.18
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.15 indicates that ARE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.15, ARE is in line with its industry, outperforming 50.00% of the companies in the same industry.
ARE has a Quick Ratio of 1.14. 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 1.14 is in line compared to the rest of the industry. ARE outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 116.51% 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)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
Based on estimates for the next years, ARE will show a very strong growth in Earnings Per Share. The EPS will grow by 44.67% on average per year.
Based on estimates for the next years, ARE will show a very strong growth in Revenue. The Revenue will grow by 20.10% on average per year.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 141.83 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 75.00% of the companies listed in the same industry.
ARE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.45.
ARE is valuated correctly with a Price/Forward Earnings ratio of 15.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE indicates a rather cheap valuation: ARE is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. ARE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.83 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
ARE's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.64 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ARE's earnings are expected to grow with 58.04% in the coming years.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y88.88%
EPS Next 3Y58.04%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 2.87%.
Compared to an average industry Dividend Yield of 1.41, ARE pays a better dividend. On top of this ARE pays more dividend than 87.50% of the companies listed in the same industry.
ARE's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
The dividend of ARE is nicely growing with an annual growth rate of 6.05%!
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
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 2Y88.88%
EPS Next 3Y58.04%
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)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend0.75
Dividend Growth(5Y)6.05%
DP563.75%
Div Incr Years1
Div Non Decr Years17
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.