AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
Canada - TSX:ARE - CA00762V1094 - Common Stock
30.05 CAD
+0.84 (+2.88%)
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 has a bad profitability rating. Also its financial health evaluation is rather negative. ARE is not valued too expensively and it also shows a decent growth rate. ARE also has an excellent dividend 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
The Return On Assets of ARE (0.72%) is worse than 83.33% of its industry peers.
With a Return On Equity value of 2.81%, ARE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 2.31%, ARE is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Profit Margin, with a value of 0.51%, ARE is doing worse than 83.33% of the companies in the same industry.
ARE has a worse Operating Margin (0.94%) than 83.33% of its industry peers.
ARE has a Gross Margin of 7.67%. This is amonst the worse of the industry: ARE underperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of ARE has declined.
| Industry Rank | Sector 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%
2. Health
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.
ARE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARE has a worse debt to assets ratio.
2.2 Solvency
ARE has an Altman-Z score of 2.22. 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's Altman-Z score of 2.22 is on the low side compared to the rest of the industry. ARE is outperformed by 83.33% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that ARE is somewhat dependend on debt financing.
ARE's Debt to Equity ratio of 0.53 is amongst the best of the industry. ARE outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.22 |
ROIC/WACC0.24
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.21 indicates that ARE should not have too much problems paying its short term obligations.
The Current ratio of ARE (1.21) is worse 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.
ARE's Quick ratio of 1.20 is on the low side compared to the rest of the industry. ARE is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 238.71% over the past year.
ARE shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.53%.
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
The Earnings Per Share is expected to grow by 50.62% on average over the next years. This is a very strong growth
Based on estimates for the next years, ARE will show a quite strong growth in Revenue. The Revenue will grow by 10.27% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 69.88, the valuation of ARE can be described as expensive.
Based on the Price/Earnings ratio, ARE is valued more expensive than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. ARE is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 19.48 indicates a rather expensive valuation of ARE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARE indicates a rather cheap valuation: ARE is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ARE to the average of the S&P500 Index (22.63), we can say ARE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.88 | ||
| Fwd PE | 19.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARE indicates a somewhat cheap valuation: ARE is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.81 |
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 50.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y87.03%
EPS Next 3Y50.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.00%, ARE has a reasonable but not impressive dividend return.
ARE's Dividend Yield is rather good when compared to the industry average which is at 1.34. ARE pays more dividend than 100.00% of the companies in the same industry.
ARE's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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
190.98% 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.
DP190.98%
EPS Next 2Y87.03%
EPS Next 3Y50.62%
TSX:ARE (10/29/2025, 7:00:00 PM)
30.05
+0.84 (+2.88%)
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 Cap1.92B
Revenue(TTM)4.91B
Net Income(TTM)24.93M
Analysts77.33
Price Target24.02 (-20.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend0.75
Dividend Growth(5Y)6.05%
DP190.98%
Div Incr Years1
Div Non Decr Years17
Ex-Date
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)8.82%
EPS NQ rev (1m)-13.67%
EPS NQ rev (3m)-33.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-84.83%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.88 | ||
| Fwd PE | 19.48 | ||
| P/S | 0.39 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.16 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 16.81 |
EPS(TTM)0.43
EY1.43%
EPS(NY)1.54
Fwd EY5.13%
FCF(TTM)-1.41
FCFYN/A
OCF(TTM)-0.49
OCFYN/A
SpS76.93
BVpS13.92
TBVpS10.38
PEG (NY)0.6
PEG (5Y)N/A
Graham Number11.61
Profitability
| Industry Rank | Sector 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
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-Score4
Asset Turnover1.42
Health
| Industry Rank | Sector 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 | 2.22 |
F-Score4
WACC9.58%
ROIC/WACC0.24
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%
AECON GROUP INC / ARE.CA FAQ
What is the fundamental rating for ARE stock?
ChartMill assigns a fundamental rating of 3 / 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 69.88 and the Price/Book (PB) ratio is 2.16.
Can you provide the financial health for ARE stock?
The financial health rating of AECON GROUP INC (ARE.CA) is 2 / 10.