AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
TSX:ARE - Toronto Stock Exchange - CA00762V1094 - Common Stock - Currency: CAD
Taking everything into account, ARE scores 3 out of 10 in our fundamental rating. ARE was compared to 8 industry peers in the Construction & Engineering industry. Both the profitability and financial health of ARE have multiple concerns. ARE has a decent growth rate and is not valued too expensively. ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ARE has reported negative net income.
In the past year ARE has reported a negative cash flow from operations.
ARE had positive earnings in 4 of the past 5 years.
In multiple years ARE reported negative operating cash flow during the last 5 years.
1.2 Ratios
ARE's Return On Assets of -2.70% is on the low side compared to the rest of the industry. ARE is outperformed by 62.50% of its industry peers.
With a Return On Equity value of -9.98%, ARE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.7% | ||
| ROE | -9.98% | ||
| ROIC | 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
1.3 Margins
ARE has a worse Gross Margin (3.62%) than 62.50% of its industry peers.
In the last couple of years the Gross Margin of ARE has declined.
ARE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 3.62% |
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
ARE does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ARE has been increased compared to 1 year ago.
Compared to 5 years ago, ARE has more shares outstanding
The debt/assets ratio for ARE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that ARE is in the distress zone and has some risk of bankruptcy.
ARE's Altman-Z score of 1.78 is on the low side compared to the rest of the industry. ARE is outperformed by 62.50% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that ARE is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.45, ARE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.78 |
ROIC/WACCN/A
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.19 indicates that ARE should not have too much problems paying its short term obligations.
ARE's Current ratio of 1.19 is in line compared to the rest of the industry. ARE outperforms 50.00% of its industry peers.
ARE has a Quick Ratio of 1.18. This is a normal value and indicates that ARE is financially healthy and should not expect problems in meeting its short term obligations.
ARE's Quick ratio of 1.18 is in line compared to the rest of the industry. ARE outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for ARE have decreased strongly by -171.36% in the last year.
The Revenue has been growing slightly by 1.70% in the past year.
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)-171.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-440%
Revenue 1Y (TTM)1.7%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%25.4%
3.2 Future
The Earnings Per Share is expected to grow by 53.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.06% on average over the next years. This is quite good.
EPS Next Y207.76%
EPS Next 2Y101.48%
EPS Next 3Y53.93%
EPS Next 5YN/A
Revenue Next Year17.22%
Revenue Next 2Y10.79%
Revenue Next 3Y10.06%
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
The Price/Earnings Ratio is negative for ARE. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 9.70, the valuation of ARE can be described as very reasonable.
87.50% of the companies in the same industry are more expensive than ARE, based on the Price/Forward Earnings ratio.
ARE is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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 53.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y101.48%
EPS Next 3Y53.93%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.59, ARE pays a better dividend. On top of this ARE pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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 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
5.3 Sustainability
ARE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of ARE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-51.99%
EPS Next 2Y101.48%
EPS Next 3Y53.93%
TSX:ARE (6/30/2025, 7:00:00 PM)
20.57
+0.07 (+0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners20.27%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap1.29B
Analysts77.33
Price Target21.98 (6.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend0.75
Dividend Growth(5Y)6.05%
DP-51.99%
Div Incr Years1
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-144.35%
Min EPS beat(2)-238.86%
Max EPS beat(2)-49.83%
EPS beat(4)2
Avg EPS beat(4)-65.57%
Min EPS beat(4)-238.86%
Max EPS beat(4)18.67%
EPS beat(8)5
Avg EPS beat(8)28.06%
EPS beat(12)8
Avg EPS beat(12)11.59%
EPS beat(16)11
Avg EPS beat(16)9.43%
Revenue beat(2)2
Avg Revenue beat(2)10.09%
Min Revenue beat(2)5.5%
Max Revenue beat(2)14.68%
Revenue beat(4)3
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-16.79%
Max Revenue beat(4)14.68%
Revenue beat(8)4
Avg Revenue beat(8)-2.9%
Revenue beat(12)8
Avg Revenue beat(12)0.4%
Revenue beat(16)10
Avg Revenue beat(16)1.67%
PT rev (1m)0%
PT rev (3m)-18.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.7 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.41 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.47
EYN/A
EPS(NY)2.12
Fwd EY10.31%
FCF(TTM)-1.21
FCFYN/A
OCF(TTM)-0.14
OCFYN/A
SpS70.85
BVpS14.54
TBVpS10.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.7% | ||
| ROE | -9.98% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 3.62% | ||
| 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-Score1
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 70.89% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.78 |
F-Score1
WACC8.75%
ROIC/WACCN/A
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)-171.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-440%
EPS Next Y207.76%
EPS Next 2Y101.48%
EPS Next 3Y53.93%
EPS Next 5YN/A
Revenue 1Y (TTM)1.7%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%25.4%
Revenue Next Year17.22%
Revenue Next 2Y10.79%
Revenue Next 3Y10.06%
Revenue Next 5YN/A
EBIT growth 1Y-16989.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year667.26%
EBIT Next 3Y118.09%
EBIT Next 5YN/A
FCF growth 1Y37.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y88.9%
OCF growth 3YN/A
OCF growth 5Y-47.93%