AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
Canada - TSX:ARE - CA00762V1094 - Common Stock
29.12 CAD
-0.38 (-1.29%)
Overall ARE gets a fundamental rating of 3 out of 10. We evaluated ARE against 7 industry peers in the Construction & Engineering industry. Both the profitability and financial health of ARE have multiple concerns. ARE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ARE had positive earnings in the past year.
In the past year ARE has reported a negative cash flow from operations.
ARE had positive earnings in 4 of the past 5 years.
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
With a Return On Assets value of 0.72%, ARE is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
ARE has a worse Return On Equity (2.81%) than 71.43% of its industry peers.
ARE has a Return On Invested Capital of 2.31%. This is in the lower half of the industry: ARE underperforms 71.43% of its industry peers.
| 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
ARE has a Profit Margin of 0.51%. This is in the lower half of the industry: ARE underperforms 71.43% of its industry peers.
The Operating Margin of ARE (0.94%) is worse than 71.43% of its industry peers.
ARE's Gross Margin of 7.67% is on the low side compared to the rest of the industry. ARE is outperformed by 71.43% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARE is destroying value.
ARE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ARE has been increased compared to 5 years ago.
Compared to 1 year ago, ARE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.21 indicates that ARE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ARE (2.21) is worse than 71.43% 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.
Looking at the Debt to Equity ratio, with a value of 0.53, ARE belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.21 |
ROIC/WACC0.25
WACC9.24%
2.3 Liquidity
A Current Ratio of 1.21 indicates that ARE should not have too much problems paying its short term obligations.
ARE has a Current ratio (1.21) which is comparable to the rest of the industry.
ARE has a Quick Ratio of 1.20. 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 Quick ratio of 1.20. This is comparable to the rest of the industry: ARE outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
ARE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 238.71%, which is quite impressive.
ARE shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.53%.
Measured over the past years, ARE shows a small growth in Revenue. The Revenue has been growing by 4.16% on average per year.
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
ARE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.27% yearly.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 67.72, 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 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, ARE is valued quite expensively.
The Price/Forward Earnings ratio is 18.88, which indicates a rather expensive current 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 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, ARE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.72 | ||
| Fwd PE | 18.88 |
4.2 Price Multiples
ARE's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.57 |
4.3 Compensation for Growth
ARE's 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)0.58
PEG (5Y)N/A
EPS Next 2Y87.03%
EPS Next 3Y50.62%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 2.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.23, ARE pays a better dividend. On top of this ARE pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ARE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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.
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%
TSX:ARE (11/7/2025, 7:00:00 PM)
29.12
-0.38 (-1.29%)
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 Cap1.86B
Revenue(TTM)4.91B
Net Income(TTM)24.93M
Analysts69.33
Price Target27.08 (-7.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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)14.06%
PT rev (3m)22.69%
EPS NQ rev (1m)-16.12%
EPS NQ rev (3m)-36.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-84.83%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.72 | ||
| Fwd PE | 18.88 | ||
| P/S | 0.38 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.09 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 16.57 |
EPS(TTM)0.43
EY1.48%
EPS(NY)1.54
Fwd EY5.3%
FCF(TTM)-1.41
FCFYN/A
OCF(TTM)-0.49
OCFYN/A
SpS76.93
BVpS13.92
TBVpS10.38
PEG (NY)0.58
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 | 2.21 |
F-Score4
WACC9.24%
ROIC/WACC0.25
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 67.72 and the Price/Book (PB) ratio is 2.09.
Can you provide the financial health for ARE stock?
The financial health rating of AECON GROUP INC (ARE.CA) is 3 / 10.