NORTH AMERICAN CONSTRUCTION (NOA.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:NOA • CA6568111067
20.35 CAD
-0.19 (-0.93%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 3 out of 10 to NOA. NOA was compared to 27 industry peers in the Energy Equipment & Services industry. While NOA is still in line with the averages on profitability rating, there are concerns on its financial health. NOA has a decent growth rate and is not valued too expensively. NOA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- NOA had positive earnings in the past year.
- NOA had a positive operating cash flow in the past year.
- Each year in the past 5 years NOA has been profitable.
- NOA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of NOA (2.06%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 8.18%, NOA is in line with its industry, outperforming 48.15% of the companies in the same industry.
- NOA has a Return On Invested Capital (5.59%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NOA is significantly below the industry average of 177.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 8.18% | ||
| ROIC | 5.59% |
ROA(3y)4.52%
ROA(5y)5.07%
ROE(3y)17.02%
ROE(5y)17.87%
ROIC(3y)6.92%
ROIC(5y)5.82%
1.3 Margins
- With a Profit Margin value of 3.00%, NOA perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
- In the last couple of years the Profit Margin of NOA has declined.
- Looking at the Operating Margin, with a value of 8.68%, NOA is in line with its industry, outperforming 59.26% of the companies in the same industry.
- In the last couple of years the Operating Margin of NOA has grown nicely.
- NOA has a Gross Margin of 12.88%. This is in the lower half of the industry: NOA underperforms 70.37% of its industry peers.
- NOA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.68% | ||
| PM (TTM) | 3% | ||
| GM | 12.88% |
OM growth 3Y27.21%
OM growth 5Y10.09%
PM growth 3Y-21.64%
PM growth 5Y-5.91%
GM growth 3Y14.79%
GM growth 5Y6.09%
2. Health
2.1 Basic Checks
- NOA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, NOA has about the same amount of shares outstanding.
- NOA has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NOA has a worse debt to assets ratio.
2.2 Solvency
- NOA has an Altman-Z score of 1.25. This is a bad value and indicates that NOA is not financially healthy and even has some risk of bankruptcy.
- NOA's Altman-Z score of 1.25 is on the low side compared to the rest of the industry. NOA is outperformed by 70.37% of its industry peers.
- A Debt/Equity ratio of 1.59 is on the high side and indicates that NOA has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.59, NOA is doing worse than 81.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC0.64
WACC8.72%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that NOA may have some problems paying its short term obligations.
- NOA has a Current ratio of 0.91. This is in the lower half of the industry: NOA underperforms 77.78% of its industry peers.
- A Quick Ratio of 0.73 indicates that NOA may have some problems paying its short term obligations.
- With a Quick ratio value of 0.73, NOA is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- NOA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.61%.
- The Earnings Per Share has been growing by 19.82% on average over the past years. This is quite good.
- The Revenue has grown by 8.24% in the past year. This is quite good.
- NOA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.15% yearly.
EPS 1Y (TTM)-38.61%
EPS 3Y21.88%
EPS 5Y19.82%
EPS Q2Q%-42.74%
Revenue 1Y (TTM)8.24%
Revenue growth 3Y21.24%
Revenue growth 5Y10.15%
Sales Q2Q%10.59%
3.2 Future
- NOA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.53% yearly.
- NOA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.95% yearly.
EPS Next Y-45.91%
EPS Next 2Y-8.75%
EPS Next 3Y-1.53%
EPS Next 5YN/A
Revenue Next Year12.31%
Revenue Next 2Y9.91%
Revenue Next 3Y7.95%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.21, the valuation of NOA can be described as reasonable.
- NOA's Price/Earnings ratio is rather cheap when compared to the industry. NOA is cheaper than 81.48% of the companies in the same industry.
- NOA is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- NOA is valuated cheaply with a Price/Forward Earnings ratio of 6.55.
- Based on the Price/Forward Earnings ratio, NOA is valued cheaper than 88.89% of the companies in the same industry.
- NOA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 6.55 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOA indicates a somewhat cheap valuation: NOA is cheaper than 74.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-8.75%
EPS Next 3Y-1.53%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.34%, NOA has a reasonable but not impressive dividend return.
- NOA's Dividend Yield is a higher than the industry average which is at 1.16.
- Compared to an average S&P500 Dividend Yield of 1.83, NOA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
- On average, the dividend of NOA grows each year by 31.86%, which is quite nice.
- NOA has been paying a dividend for at least 10 years, so it has a reliable track record.
- NOA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)31.86%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
- NOA pays out 32.95% of its income as dividend. This is a sustainable payout ratio.
DP32.95%
EPS Next 2Y-8.75%
EPS Next 3Y-1.53%
NORTH AMERICAN CONSTRUCTION / NOA.CA FAQ
What is the ChartMill fundamental rating of NORTH AMERICAN CONSTRUCTION (NOA.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to NOA.CA.
What is the valuation status for NOA stock?
ChartMill assigns a valuation rating of 5 / 10 to NORTH AMERICAN CONSTRUCTION (NOA.CA). This can be considered as Fairly Valued.
What is the profitability of NOA stock?
NORTH AMERICAN CONSTRUCTION (NOA.CA) has a profitability rating of 4 / 10.
What is the expected EPS growth for NORTH AMERICAN CONSTRUCTION (NOA.CA) stock?
The Earnings per Share (EPS) of NORTH AMERICAN CONSTRUCTION (NOA.CA) is expected to decline by -45.91% in the next year.
How sustainable is the dividend of NORTH AMERICAN CONSTRUCTION (NOA.CA) stock?
The dividend rating of NORTH AMERICAN CONSTRUCTION (NOA.CA) is 7 / 10 and the dividend payout ratio is 32.95%.