AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
Canada - TSX:ARE - CA00762V1094 - Common Stock
25.83 CAD
+0.41 (+1.61%)
We assign a fundamental rating of 4 out of 10 to ARE. ARE was compared to 8 industry peers in the Construction & Engineering industry. Both the profitability and financial health of ARE have multiple concerns. ARE is valued quite expensively, but it does show have an excellent growth rating.
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.
Of the past 5 years ARE 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: ARE reported negative operating cash flow in multiple years.
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.
With a Return On Equity value of 0.92%, ARE is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
ARE has a Return On Invested Capital of 1.63%. This is in the lower half of the industry: ARE underperforms 75.00% of its industry peers.
| 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.
The Operating Margin of ARE (0.62%) is worse than 62.50% of its industry peers.
The Gross Margin of ARE (6.92%) is worse than 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
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
ARE has more shares outstanding than it did 5 years ago.
ARE has a worse debt/assets ratio than last year.
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 worse Altman-Z score (2.02) than 62.50% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that ARE is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.43, ARE belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.02 |
ROIC/WACC0.18
WACC9.04%
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 (1.15) which is in line with its industry peers.
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.
With a Quick ratio value of 1.14, ARE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| 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
The Earnings Per Share is expected to grow by 44.67% on average over the next years. This is a very strong growth
ARE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.10% yearly.
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
With a Price/Earnings ratio of 143.50, ARE can be considered very expensive at the moment.
ARE's Price/Earnings ratio is a bit more expensive when compared to the industry. ARE is more expensive than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, ARE is valued quite expensively.
ARE is valuated correctly with a Price/Forward Earnings ratio of 16.00.
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 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 143.5 | ||
| Fwd PE | 16 |
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 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.72 |
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)1.19
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 2.44.
| Industry Rank | Sector 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 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)6.05%
Div Incr Years1
Div Non Decr Years17
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%
TSX:ARE (11/18/2025, 7:00:00 PM)
25.83
+0.41 (+1.61%)
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 Cap1.65B
Revenue(TTM)5.16B
Net Income(TTM)8.47M
Analysts69.33
Price Target27.08 (4.84%)
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 | 143.5 | ||
| Fwd PE | 16 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.8 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | 16.72 |
EPS(TTM)0.18
EY0.7%
EPS(NY)1.61
Fwd EY6.25%
FCF(TTM)-1.41
FCFYN/A
OCF(TTM)-0.53
OCFYN/A
SpS80.92
BVpS14.36
TBVpS10.22
PEG (NY)1.19
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
WACC9.04%
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 143.5 and the Price/Book (PB) ratio is 1.8.
Can you provide the financial health for ARE stock?
The financial health rating of AECON GROUP INC (ARE.CA) is 3 / 10.