AECON GROUP INC (ARE.CA) Fundamental Analysis & Valuation
TSX:ARE • CA00762V1094
Current stock price
46.14 CAD
+0.49 (+1.07%)
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
- In the past year ARE was profitable.
- ARE had a positive operating cash flow in the past year.
- Of the past 5 years ARE 4 years were profitable.
- In multiple years ARE reported negative operating cash flow during the last 5 years.
1.2 Ratios
- ARE has a Return On Assets of 0.38%. This is in the lower half of the industry: ARE underperforms 62.50% of its industry peers.
- Looking at the Return On Equity, with a value of 1.64%, ARE is doing worse than 62.50% of the companies in the same industry.
- ARE has a worse Return On Invested Capital (3.00%) than 62.50% 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
- The Profit Margin of ARE (0.28%) is worse than 62.50% of its industry peers.
- In the last couple of years the Profit Margin of ARE has declined.
- Looking at the Operating Margin, with a value of 1.22%, ARE is doing worse than 62.50% of the companies in the same industry.
- In the last couple of years the Operating Margin of ARE has declined.
- Looking at the Gross Margin, with a value of 7.25%, ARE is in line with its industry, outperforming 50.00% of the companies in the same 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.
- The number of shares outstanding for ARE has been increased compared to 1 year ago.
- The number of shares outstanding for ARE has been increased compared to 5 years ago.
- ARE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.25 indicates that ARE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.25, ARE is doing worse than 62.50% of the companies in the same industry.
- The Debt to FCF ratio of ARE is 10.21, which is on the high side as it means it would take ARE, 10.21 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ARE (10.21) is worse than 75.00% of its industry peers.
- ARE has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.40, ARE belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 10.21 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.34
WACC8.75%
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 (1.10) which is comparable to the rest of the 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. ARE.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 140.78% over the past year.
- ARE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.39% yearly.
- Looking at the last year, ARE shows a very strong growth in Revenue. The Revenue has grown by 28.09%.
- ARE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.32% yearly.
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 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 109.86 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 62.50% of the companies listed in the same industry.
- ARE is valuated expensively when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 29.10, ARE can be considered very expensive at the moment.
- 62.50% of the companies in the same industry are cheaper than ARE, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 37.96. ARE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.86 | ||
| Fwd PE | 29.1 |
4.2 Price Multiples
- 62.50% of the companies in the same industry are cheaper than ARE, based on the Enterprise Value to EBITDA ratio.
- 75.00% of the companies in the same industry are cheaper than ARE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.72 | ||
| EV/EBITDA | 21.2 |
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 102.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y117.1%
EPS Next 3Y102.83%
5. ARE.CA Dividend Analysis
5.1 Amount
- ARE has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.79, 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 1.82, ARE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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
5.3 Sustainability
- 315.92% 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.
DP315.92%
EPS Next 2Y117.1%
EPS Next 3Y102.83%
ARE.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:ARE (4/13/2026, 7:00:00 PM)
46.14
+0.49 (+1.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)03-05 2026-03-05/amc
Earnings (Next)04-28 2026-04-28
Inst Owners20.63%
Inst Owner ChangeN/A
Ins Owners0.98%
Ins Owner ChangeN/A
Market Cap3.16B
Revenue(TTM)5.43B
Net Income(TTM)15.16M
Analysts69.33
Price Target45.53 (-1.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)25.34%
PT rev (3m)33.06%
EPS NQ rev (1m)11.55%
EPS NQ rev (3m)-205.27%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)4.47%
Revenue NY rev (3m)4.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.86 | ||
| Fwd PE | 29.1 | ||
| P/S | 0.58 | ||
| P/FCF | 53.72 | ||
| P/OCF | 24.95 | ||
| P/B | 3.43 | ||
| P/tB | 4.73 | ||
| EV/EBITDA | 21.2 |
EPS(TTM)0.42
EY0.91%
EPS(NY)1.59
Fwd EY3.44%
FCF(TTM)0.86
FCFY1.86%
OCF(TTM)1.85
OCFY4.01%
SpS79.37
BVpS13.46
TBVpS9.75
PEG (NY)0.4
PEG (5Y)N/A
Graham Number11.28
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 | 2.25 |
F-Score7
WACC8.75%
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 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 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 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 109.86 and the Price/Book (PB) ratio is 3.43.
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.