AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
TSX:ARE - Toronto Stock Exchange - CA00762V1094 - Common Stock - Currency: CAD
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 not valued too expensively and it also shows a decent growth rate. Finally 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.
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
ARE has a worse Return On Assets (-2.70%) than 71.43% of its industry peers.
The Return On Equity of ARE (-9.98%) is worse than 71.43% of its industry peers.
| 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's Gross Margin of 3.62% 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.
The Profit Margin and Operating Margin are not available for ARE so they could not be analyzed.
| 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
Compared to 1 year ago, ARE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that ARE is in the distress zone and has some risk of bankruptcy.
ARE has a Altman-Z score of 1.76. This is in the lower half of the industry: ARE underperforms 71.43% of its industry peers.
ARE has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
ARE has a Debt to Equity ratio of 0.45. This is amongst the best in the industry. ARE outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.76 |
ROIC/WACCN/A
WACC8.55%
2.3 Liquidity
ARE has a Current Ratio of 1.19. This is a normal value and indicates that ARE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.19, ARE is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that ARE should not have too much problems paying its short term obligations.
ARE has a Quick ratio (1.18) which is comparable to the rest of the industry.
| 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.
Looking at the last year, ARE shows a small growth in Revenue. The Revenue has grown by 1.70% in the last 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
Based on estimates for the next years, ARE will show a quite strong growth in Revenue. The Revenue will grow by 10.06% on average per year.
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
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
The Price/Earnings Ratio is negative for ARE. In the last year negative earnings were reported.
ARE is valuated reasonably with a Price/Forward Earnings ratio of 9.31.
Based on the Price/Forward Earnings ratio, ARE is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, ARE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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 53.93% in the coming years.
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 3.90%.
Compared to an average industry Dividend Yield of 1.63, 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 2.40, ARE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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 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 (6/18/2025, 7:00:00 PM)
19.75
+0.2 (+1.02%)
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 Cap1.24B
Analysts77.33
Price Target21.98 (11.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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)-29.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-25.89%
Revenue NQ rev (1m)0.91%
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 | 9.31 | ||
| P/S | 0.28 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.36 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.47
EYN/A
EPS(NY)2.12
Fwd EY10.74%
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 | 1.76 |
F-Score1
WACC8.55%
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%