NORTH AMERICAN CONSTRUCTION (NOA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NOA - CA6568111067 - Common Stock
20.28 CAD
-0.39 (-1.89%)
Taking everything into account, NOA scores 3 out of 10 in our fundamental rating. NOA was compared to 27 industry peers in the Energy Equipment & Services industry. NOA has a medium profitability rating, but doesn't score so well on its financial health evaluation. NOA has a correct valuation and a medium growth rate. 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.
- In the past 5 years NOA has always been profitable.
- NOA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 2.06%, NOA is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
- NOA has a Return On Equity of 8.18%. This is comparable to the rest of the industry: NOA outperforms 44.44% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.59%, NOA is in line with its industry, outperforming 44.44% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NOA is significantly below the industry average of 169.81%.
| 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
- NOA has a worse Profit Margin (3.00%) than 62.96% of its industry peers.
- NOA's Profit Margin has declined in the last couple of years.
- NOA's Operating Margin of 8.68% is in line compared to the rest of the industry. NOA outperforms 59.26% of its industry peers.
- NOA's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 12.88%, NOA is doing worse than 70.37% of the companies in the same industry.
- 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.
- The number of shares outstanding for NOA remains at a similar level compared to 1 year ago.
- The number of shares outstanding for NOA has been increased compared to 5 years ago.
- The debt/assets ratio for NOA is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.25, we must say that NOA is in the distress zone and 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.
- NOA has a worse Debt to Equity ratio (1.59) than 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC0.64
WACC8.79%
2.3 Liquidity
- NOA has a Current Ratio of 0.91. This is a bad value and indicates that NOA is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.91, NOA is not doing good in the industry: 81.48% of the companies in the same industry are doing better.
- NOA has a Quick Ratio of 0.91. This is a bad value and indicates that NOA is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.73, NOA is not doing good in the industry: 77.78% 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
- The earnings per share for NOA have decreased strongly by -38.61% in the last year.
- The Earnings Per Share has been growing by 19.82% on average over the past years. This is quite good.
- NOA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.24%.
- Measured over the past years, NOA shows a quite strong growth in Revenue. The Revenue has been growing by 10.15% on average per year.
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
- Based on estimates for the next years, NOA will show a decrease in Earnings Per Share. The EPS will decrease by -1.53% on average per year.
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- NOA is valuated reasonably with a Price/Earnings ratio of 9.18.
- 77.78% of the companies in the same industry are more expensive than NOA, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of NOA to the average of the S&P500 Index (28.82), we can say NOA is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.53, the valuation of NOA can be described as very cheap.
- Based on the Price/Forward Earnings ratio, NOA is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. NOA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 6.53 |
4.2 Price Multiples
- NOA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NOA is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.32 |
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
- NOA has a Yearly Dividend Yield of 2.28%.
- NOA's Dividend Yield is a higher than the industry average which is at 1.18.
- NOA's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
- The dividend of NOA is nicely growing with an annual growth rate of 31.86%!
- NOA has been paying a dividend for at least 10 years, so it has a reliable track record.
- NOA has not decreased their dividend for at least 10 years, which is a reliable track record.
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%.