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AECON GROUP INC (ARE.CA) Stock Fundamental Analysis

Canada - TSX:ARE - CA00762V1094 - Common Stock

24.74 CAD
+0.36 (+1.48%)
Last: 10/14/2025, 7:00:00 PM
Fundamental Rating

3

ARE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 6 industry peers in the Construction & Engineering industry. ARE may be in some trouble as it scores bad on both profitability and health. ARE has a correct valuation and a medium growth rate. ARE also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

1

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.
In multiple years ARE reported negative operating cash flow during the last 5 years.
ARE.CA Yearly Net Income VS EBIT VS OCF VS FCFARE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

1.2 Ratios

The Return On Assets of ARE (0.72%) is worse than 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 2.81%, ARE is doing worse than 83.33% of the companies in the same industry.
With a Return On Invested Capital value of 2.31%, ARE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA 0.72%
ROE 2.81%
ROIC 2.32%
ROA(3y)1.36%
ROA(5y)1.65%
ROE(3y)4.06%
ROE(5y)5.54%
ROIC(3y)N/A
ROIC(5y)N/A
ARE.CA Yearly ROA, ROE, ROICARE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

1.3 Margins

ARE's Profit Margin of 0.51% is on the low side compared to the rest of the industry. ARE is outperformed by 83.33% of its industry peers.
The Operating Margin of ARE (0.94%) is worse than 83.33% of its industry peers.
ARE has a worse Gross Margin (7.67%) than 83.33% of its industry peers.
ARE's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 0.94%
PM (TTM) 0.51%
GM 7.67%
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%
ARE.CA Yearly Profit, Operating, Gross MarginsARE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10

2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARE is destroying value.
Compared to 1 year ago, ARE has more shares outstanding
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.
ARE.CA Yearly Shares OutstandingARE.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
ARE.CA Yearly Total Debt VS Total AssetsARE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

ARE has an Altman-Z score of 2.14. 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 2.14. This is amonst the worse of the industry: ARE underperforms 83.33% of its industry peers.
ARE has a Debt/Equity ratio of 0.53. This is a neutral value indicating ARE is somewhat dependend on debt financing.
ARE has a Debt to Equity ratio of 0.53. This is amongst the best in the industry. ARE outperforms 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF N/A
Altman-Z 2.14
ROIC/WACC0.23
WACC10.27%
ARE.CA Yearly LT Debt VS Equity VS FCFARE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

2.3 Liquidity

ARE has a Current Ratio of 1.21. 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 worse Current ratio (1.21) than 66.67% of its industry peers.
A Quick Ratio of 1.20 indicates that ARE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, ARE is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.21
Quick Ratio 1.2
ARE.CA Yearly Current Assets VS Current LiabilitesARE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 238.71% over the past year.
The Revenue has grown by 20.53% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 4.16% on average over the past years.
EPS 1Y (TTM)238.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%95.48%
Revenue 1Y (TTM)20.53%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%52.45%

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 50.62% on average per year.
The Revenue is expected to grow by 10.27% on average over the next years. This is quite good.
EPS Next Y116.34%
EPS Next 2Y87.03%
EPS Next 3Y50.62%
EPS Next 5YN/A
Revenue Next Year22.42%
Revenue Next 2Y13.85%
Revenue Next 3Y10.27%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ARE.CA Yearly Revenue VS EstimatesARE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B 5B
ARE.CA Yearly EPS VS EstimatesARE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1 2

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 57.53, ARE can be considered very expensive at the moment.
ARE's Price/Earnings ratio is rather expensive when compared to the industry. ARE is more expensive than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.49. ARE is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 16.04 indicates a correct valuation of ARE.
Based on the Price/Forward Earnings ratio, ARE is valued cheaper than 83.33% of the companies in the same industry.
ARE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
Industry RankSector Rank
PE 57.53
Fwd PE 16.04
ARE.CA Price Earnings VS Forward Price EarningsARE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ARE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.51
ARE.CA Per share dataARE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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.
A more expensive valuation may be justified as ARE's earnings are expected to grow with 50.62% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y87.03%
EPS Next 3Y50.62%

7

5. Dividend

5.1 Amount

ARE has a Yearly Dividend Yield of 3.05%.
ARE's Dividend Yield is rather good when compared to the industry average which is at 1.36. ARE pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, ARE pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.05%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.05%
Div Incr Years1
Div Non Decr Years17
ARE.CA Yearly Dividends per shareARE.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

190.98% of the earnings are spent on dividend by ARE. This is not a sustainable payout ratio.
The dividend of ARE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP190.98%
EPS Next 2Y87.03%
EPS Next 3Y50.62%
ARE.CA Yearly Income VS Free CF VS DividendARE.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M
ARE.CA Dividend Payout.ARE.CA Dividend Payout, showing the Payout Ratio.ARE.CA Dividend Payout.PayoutRetained Earnings

AECON GROUP INC

TSX:ARE (10/14/2025, 7:00:00 PM)

24.74

+0.36 (+1.48%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)10-29 2025-10-29
Inst Owners18.27%
Inst Owner ChangeN/A
Ins Owners0.9%
Ins Owner ChangeN/A
Market Cap1.58B
Analysts77.33
Price Target24.02 (-2.91%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.05%
Yearly Dividend0.75
Dividend Growth(5Y)6.05%
DP190.98%
Div Incr Years1
Div Non Decr Years17
Ex-Date09-22 2025-09-22 (0.19)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-249.62%
Min EPS beat(2)-260.38%
Max EPS beat(2)-238.86%
EPS beat(4)1
Avg EPS beat(4)-135.33%
Min EPS beat(4)-260.38%
Max EPS beat(4)7.76%
EPS beat(8)4
Avg EPS beat(8)-33.33%
EPS beat(12)8
Avg EPS beat(12)2.44%
EPS beat(16)10
Avg EPS beat(16)-10.95%
Revenue beat(2)2
Avg Revenue beat(2)16.07%
Min Revenue beat(2)14.68%
Max Revenue beat(2)17.47%
Revenue beat(4)4
Avg Revenue beat(4)9.72%
Min Revenue beat(4)1.22%
Max Revenue beat(4)17.47%
Revenue beat(8)4
Avg Revenue beat(8)-0.77%
Revenue beat(12)8
Avg Revenue beat(12)1.07%
Revenue beat(16)10
Avg Revenue beat(16)2.39%
PT rev (1m)1.17%
PT rev (3m)9.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-84.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.44%
Valuation
Industry RankSector Rank
PE 57.53
Fwd PE 16.04
P/S 0.32
P/FCF N/A
P/OCF N/A
P/B 1.78
P/tB 2.38
EV/EBITDA 14.51
EPS(TTM)0.43
EY1.74%
EPS(NY)1.54
Fwd EY6.24%
FCF(TTM)-1.41
FCFYN/A
OCF(TTM)-0.49
OCFYN/A
SpS76.93
BVpS13.92
TBVpS10.38
PEG (NY)0.49
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.72%
ROE 2.81%
ROCE 3.22%
ROIC 2.32%
ROICexc 2.53%
ROICexgc 3.06%
OM 0.94%
PM (TTM) 0.51%
GM 7.67%
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
ROICexcg growth 3YN/A
ROICexcg 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-Score4
Asset Turnover1.42
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF N/A
Debt/EBITDA 3.22
Cap/Depr 58.64%
Cap/Sales 1.21%
Interest Coverage 1.6
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.21
Quick Ratio 1.2
Altman-Z 2.14
F-Score4
WACC10.27%
ROIC/WACC0.23
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)238.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%95.48%
EPS Next Y116.34%
EPS Next 2Y87.03%
EPS Next 3Y50.62%
EPS Next 5YN/A
Revenue 1Y (TTM)20.53%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%52.45%
Revenue Next Year22.42%
Revenue Next 2Y13.85%
Revenue Next 3Y10.27%
Revenue Next 5YN/A
EBIT growth 1Y124.8%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year618.02%
EBIT Next 3Y117.4%
EBIT Next 5YN/A
FCF growth 1Y64.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y85.23%
OCF growth 3YN/A
OCF growth 5Y-47.93%