AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARE - CA00762V1094 - Common Stock
28.42 CAD
+0.62 (+2.23%)
Overall ARE gets a fundamental rating of 3 out of 10. We evaluated ARE against 7 industry peers in the Construction & Engineering industry. ARE has a bad profitability rating. Also its financial health evaluation is rather negative. ARE is valued quite expensively, but it does show have an excellent growth rating. Finally ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ARE had positive earnings in the past year.
ARE had a negative operating cash flow in the past year.
Of the past 5 years ARE 4 years were profitable.
In multiple years ARE reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.23%, ARE is doing worse than 85.71% of the companies in the same industry.
With a Return On Equity value of 0.92%, ARE is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 1.63%, ARE is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.92% | ||
| ROIC | 1.63% |
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
The Profit Margin of ARE (0.16%) is worse than 71.43% of its industry peers.
With a Operating Margin value of 0.62%, ARE is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
The Gross Margin of ARE (6.92%) is worse than 71.43% of its industry peers.
ARE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.62% | ||
| PM (TTM) | 0.16% | ||
| GM | 6.92% |
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.
The debt/assets ratio for ARE is higher compared to a year ago.
2.2 Solvency
ARE has an Altman-Z score of 2.05. 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 2.05 is on the low side compared to the rest of the industry. ARE is outperformed by 71.43% of its industry peers.
ARE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.43, ARE is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.05 |
ROIC/WACC0.19
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.15 indicates that ARE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.15, ARE perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that ARE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.14, ARE is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 110.09% over the past year.
The Revenue has grown by 25.68% in the past year. This is a very strong growth!
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)110.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.65%
Revenue 1Y (TTM)25.68%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%19.98%
3.2 Future
The Earnings Per Share is expected to grow by 44.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, ARE will show a very strong growth in Revenue. The Revenue will grow by 20.16% on average per year.
EPS Next Y120.59%
EPS Next 2Y88.88%
EPS Next 3Y58.04%
EPS Next 5Y44.72%
Revenue Next Year26.53%
Revenue Next 2Y15.46%
Revenue Next 3Y12.93%
Revenue Next 5Y20.16%
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 258.36, the valuation of ARE can be described as expensive.
ARE's Price/Earnings ratio is rather expensive when compared to the industry. ARE is more expensive than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.41, ARE is valued quite expensively.
ARE is valuated rather expensively with a Price/Forward Earnings ratio of 17.60.
Based on the Price/Forward Earnings ratio, ARE is valued cheaper than 85.71% of the companies in the same industry.
ARE is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 258.36 | ||
| Fwd PE | 17.6 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than ARE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARE does not grow enough to justify the current Price/Earnings ratio.
ARE's earnings are expected to grow with 58.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.14
PEG (5Y)N/A
EPS Next 2Y88.88%
EPS Next 3Y58.04%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 2.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.39, 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 2.32, ARE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
On average, the dividend of ARE grows each year by 6.05%, which is quite nice.
ARE has been paying a dividend for at least 10 years, so it has 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
ARE pays out 563.75% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ARE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP563.75%
EPS Next 2Y88.88%
EPS Next 3Y58.04%
TSX:ARE (12/4/2025, 7:00:00 PM)
28.42
+0.62 (+2.23%)
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 Cap1.80B
Revenue(TTM)5.16B
Net Income(TTM)8.47M
Analysts69.33
Price Target34.12 (20.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend0.75
Dividend Growth(5Y)6.05%
DP563.75%
Div Incr Years1
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-113.16%
Min EPS beat(2)-260.38%
Max EPS beat(2)34.06%
EPS beat(4)1
Avg EPS beat(4)-128.75%
Min EPS beat(4)-260.38%
Max EPS beat(4)34.06%
EPS beat(8)4
Avg EPS beat(8)-60.01%
EPS beat(12)8
Avg EPS beat(12)4.98%
EPS beat(16)10
Avg EPS beat(16)-8.98%
Revenue beat(2)2
Avg Revenue beat(2)13.23%
Min Revenue beat(2)8.99%
Max Revenue beat(2)17.47%
Revenue beat(4)4
Avg Revenue beat(4)11.66%
Min Revenue beat(4)5.5%
Max Revenue beat(4)17.47%
Revenue beat(8)5
Avg Revenue beat(8)0.92%
Revenue beat(12)8
Avg Revenue beat(12)1.42%
Revenue beat(16)11
Avg Revenue beat(16)3.14%
PT rev (1m)42.08%
PT rev (3m)43.75%
EPS NQ rev (1m)9.06%
EPS NQ rev (3m)16.07%
EPS NY rev (1m)26%
EPS NY rev (3m)26%
Revenue NQ rev (1m)4.4%
Revenue NQ rev (3m)4.48%
Revenue NY rev (1m)3.36%
Revenue NY rev (3m)3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 258.36 | ||
| Fwd PE | 17.6 | ||
| P/S | 0.35 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.96 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 17.85 |
EPS(TTM)0.11
EY0.39%
EPS(NY)1.61
Fwd EY5.68%
FCF(TTM)-1.42
FCFYN/A
OCF(TTM)-0.53
OCFYN/A
SpS81.54
BVpS14.47
TBVpS10.3
PEG (NY)2.14
PEG (5Y)N/A
Graham Number5.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 0.92% | ||
| ROCE | 2.26% | ||
| ROIC | 1.63% | ||
| ROICexc | 1.65% | ||
| ROICexgc | 2.05% | ||
| OM | 0.62% | ||
| PM (TTM) | 0.16% | ||
| GM | 6.92% | ||
| 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-Score5
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 54.82% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 0.95 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.05 |
F-Score5
WACC8.59%
ROIC/WACC0.19
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)110.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.65%
EPS Next Y120.59%
EPS Next 2Y88.88%
EPS Next 3Y58.04%
EPS Next 5Y44.72%
Revenue 1Y (TTM)25.68%
Revenue growth 3Y2.18%
Revenue growth 5Y4.16%
Sales Q2Q%19.98%
Revenue Next Year26.53%
Revenue Next 2Y15.46%
Revenue Next 3Y12.93%
Revenue Next 5Y20.16%
EBIT growth 1Y128.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year618.02%
EBIT Next 3Y117.4%
EBIT Next 5YN/A
FCF growth 1Y25.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y61.53%
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 2 / 10 to AECON GROUP INC (ARE.CA). This can be considered as Overvalued.
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 258.36 and the Price/Book (PB) ratio is 1.96.
Can you provide the financial health for ARE stock?
The financial health rating of AECON GROUP INC (ARE.CA) is 3 / 10.