AECON GROUP INC (ARE.CA) Fundamental Analysis & Valuation

TSX:ARE • CA00762V1094

Current stock price

51.76 CAD
+1.8 (+3.6%)
Last:

This ARE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. ARE.CA Profitability Analysis

1.1 Basic Checks

  • ARE had positive earnings in the past year.
  • In the past year ARE had a positive 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.
ARE.CA Yearly Net Income VS EBIT VS OCF VS FCFARE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M

1.2 Ratios

  • The Return On Assets of ARE (0.38%) is worse than 62.50% of its industry peers.
  • With a Return On Equity value of 1.64%, ARE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
  • The Return On Invested Capital of ARE (3.00%) is worse than 62.50% of its industry peers.
Industry RankSector Rank
ROA 0.38%
ROE 1.64%
ROIC 3%
ROA(3y)1.2%
ROA(5y)1.19%
ROE(3y)3.54%
ROE(5y)3.85%
ROIC(3y)N/A
ROIC(5y)N/A
ARE.CA Yearly ROA, ROE, ROICARE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15

1.3 Margins

  • With a Profit Margin value of 0.28%, ARE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
  • ARE's Profit Margin has declined in the last couple of years.
  • ARE has a Operating Margin of 1.22%. This is in the lower half of the industry: ARE underperforms 62.50% of its industry peers.
  • In the last couple of years the Operating Margin of ARE has declined.
  • ARE has a Gross Margin of 7.25%. This is comparable to the rest of the industry: ARE outperforms 50.00% of its industry peers.
  • In the last couple of years the Gross Margin of ARE has declined.
Industry RankSector Rank
OM 1.22%
PM (TTM) 0.28%
GM 7.25%
OM growth 3Y-6.37%
OM growth 5Y-19.55%
PM growth 3Y-24.45%
PM growth 5Y-35.06%
GM growth 3Y-1.46%
GM growth 5Y-8.02%
ARE.CA Yearly Profit, Operating, Gross MarginsARE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10

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3

2. ARE.CA Health Analysis

2.1 Basic Checks

  • ARE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
ARE.CA Yearly Shares OutstandingARE.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
ARE.CA Yearly Total Debt VS Total AssetsARE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 2.33 indicates that ARE is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a Altman-Z score value of 2.33, ARE is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
  • The Debt to FCF ratio of ARE is 10.21, which is on the high side as it means it would take ARE, 10.21 years of fcf income to pay off all of its debts.
  • ARE has a Debt to FCF ratio of 10.21. This is in the lower half of the industry: ARE underperforms 62.50% of its industry peers.
  • ARE has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
  • ARE has a Debt to Equity ratio of 0.40. This is amongst the best in the industry. ARE outperforms 87.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 10.21
Altman-Z 2.33
ROIC/WACC0.31
WACC9.57%
ARE.CA Yearly LT Debt VS Equity VS FCFARE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 1.10 indicates that ARE should not have too much problems paying its short term obligations.
  • ARE has a Current ratio (1.10) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.10 indicates that ARE should not have too much problems paying its short term obligations.
  • ARE has a Quick ratio (1.10) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 1.1
ARE.CA Yearly Current Assets VS Current LiabilitesARE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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8

3. ARE.CA Growth Analysis

3.1 Past

  • ARE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 140.78%, which is quite impressive.
  • The earnings per share for ARE have been decreasing by -18.39% on average. This is quite bad
  • ARE shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.09%.
  • ARE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.32% yearly.
EPS 1Y (TTM)140.78%
EPS 3Y9.49%
EPS 5Y-18.39%
EPS Q2Q%147.62%
Revenue 1Y (TTM)28.09%
Revenue growth 3Y4.99%
Revenue growth 5Y8.32%
Sales Q2Q%21.64%

3.2 Future

  • The Earnings Per Share is expected to grow by 79.32% 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 17.79% yearly.
EPS Next Y277.55%
EPS Next 2Y117.1%
EPS Next 3Y102.83%
EPS Next 5Y79.32%
Revenue Next Year10.02%
Revenue Next 2Y7.54%
Revenue Next 3Y18.18%
Revenue Next 5Y17.79%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ARE.CA Yearly Revenue VS EstimatesARE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
ARE.CA Yearly EPS VS EstimatesARE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 1 -1 2 3 4

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2

4. ARE.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 123.24, ARE can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARE indicates a slightly more expensive valuation: ARE is more expensive than 62.50% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of ARE to the average of the S&P500 Index (26.64), we can say ARE is valued expensively.
  • Based on the Price/Forward Earnings ratio of 32.64, the valuation of ARE can be described as expensive.
  • ARE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ARE is more expensive than 62.50% of the companies in the same industry.
  • ARE is valuated expensively when we compare the Price/Forward Earnings ratio to 21.36, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 123.24
Fwd PE 32.64
ARE.CA Price Earnings VS Forward Price EarningsARE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ARE is valued a bit more expensive than 62.50% of the companies in the same industry.
  • ARE's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ARE is more expensive than 62.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 60.26
EV/EBITDA 23.49
ARE.CA Per share dataARE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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.
  • ARE's earnings are expected to grow with 102.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y117.1%
EPS Next 3Y102.83%

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6

5. ARE.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.54%, 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 0.74. ARE pays more dividend than 87.50% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, ARE has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.54%

5.2 History

  • The dividend of ARE has a limited annual growth rate of 4.01%.
  • 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)4.01%
Div Incr Years0
Div Non Decr Years18
ARE.CA Yearly Dividends per shareARE.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • 315.92% 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.
DP315.92%
EPS Next 2Y117.1%
EPS Next 3Y102.83%
ARE.CA Yearly Income VS Free CF VS DividendARE.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M
ARE.CA Dividend Payout.ARE.CA Dividend Payout, showing the Payout Ratio.ARE.CA Dividend Payout.PayoutRetained Earnings

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ARE.CA Fundamentals: All Metrics, Ratios and Statistics

AECON GROUP INC

TSX:ARE (5/1/2026, 7:00:00 PM)

51.76

+1.8 (+3.6%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Industry Strength78.91
Industry Growth80.6
Earnings (Last)04-28
Earnings (Next)07-29
Inst Owners20.63%
Inst Owner ChangeN/A
Ins Owners0.98%
Ins Owner ChangeN/A
Market Cap3.54B
Revenue(TTM)5.43B
Net Income(TTM)15.16M
Analysts69.33
Price Target47.34 (-8.54%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.54%
Yearly Dividend0.75
Dividend Growth(5Y)4.01%
DP315.92%
Div Incr Years0
Div Non Decr Years18
Ex-Date03-23
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.65%
Min EPS beat(2)34.06%
Max EPS beat(2)59.23%
EPS beat(4)2
Avg EPS beat(4)-101.49%
Min EPS beat(4)-260.38%
Max EPS beat(4)59.23%
EPS beat(8)5
Avg EPS beat(8)-47.44%
EPS beat(12)8
Avg EPS beat(12)7.76%
EPS beat(16)11
Avg EPS beat(16)-1.53%
Revenue beat(2)2
Avg Revenue beat(2)9.03%
Min Revenue beat(2)8.99%
Max Revenue beat(2)9.07%
Revenue beat(4)4
Avg Revenue beat(4)12.55%
Min Revenue beat(4)8.99%
Max Revenue beat(4)17.47%
Revenue beat(8)6
Avg Revenue beat(8)3.04%
Revenue beat(12)8
Avg Revenue beat(12)1.51%
Revenue beat(16)12
Avg Revenue beat(16)4.02%
PT rev (1m)9.11%
PT rev (3m)38.35%
EPS NQ rev (1m)-14.44%
EPS NQ rev (3m)-249.36%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)4.81%
Valuation
Industry RankSector Rank
PE 123.24
Fwd PE 32.64
P/S 0.65
P/FCF 60.26
P/OCF 27.99
P/B 3.84
P/tB 5.31
EV/EBITDA 23.49
EPS(TTM)0.42
EY0.81%
EPS(NY)1.59
Fwd EY3.06%
FCF(TTM)0.86
FCFY1.66%
OCF(TTM)1.85
OCFY3.57%
SpS79.37
BVpS13.46
TBVpS9.75
PEG (NY)0.44
PEG (5Y)N/A
Graham Number11.279 (-78.21%)
Profitability
Industry RankSector Rank
ROA 0.38%
ROE 1.64%
ROCE 4.79%
ROIC 3%
ROICexc 3.22%
ROICexgc 4.01%
OM 1.22%
PM (TTM) 0.28%
GM 7.25%
FCFM 1.08%
ROA(3y)1.2%
ROA(5y)1.19%
ROE(3y)3.54%
ROE(5y)3.85%
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 3Y-3.12%
ROICexgc growth 5Y-13.33%
ROICexc growth 3Y6.8%
ROICexc growth 5Y-8.38%
OM growth 3Y-6.37%
OM growth 5Y-19.55%
PM growth 3Y-24.45%
PM growth 5Y-35.06%
GM growth 3Y-1.46%
GM growth 5Y-8.02%
F-Score7
Asset Turnover1.36
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 10.21
Debt/EBITDA 2.13
Cap/Depr 63.87%
Cap/Sales 1.25%
Interest Coverage 1.87
Cash Conversion 73.42%
Profit Quality 387.88%
Current Ratio 1.1
Quick Ratio 1.1
Altman-Z 2.33
F-Score7
WACC9.57%
ROIC/WACC0.31
Cap/Depr(3y)51.62%
Cap/Depr(5y)49.16%
Cap/Sales(3y)1.01%
Cap/Sales(5y)0.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)140.78%
EPS 3Y9.49%
EPS 5Y-18.39%
EPS Q2Q%147.62%
EPS Next Y277.55%
EPS Next 2Y117.1%
EPS Next 3Y102.83%
EPS Next 5Y79.32%
Revenue 1Y (TTM)28.09%
Revenue growth 3Y4.99%
Revenue growth 5Y8.32%
Sales Q2Q%21.64%
Revenue Next Year10.02%
Revenue Next 2Y7.54%
Revenue Next 3Y18.18%
Revenue Next 5Y17.79%
EBIT growth 1Y155.92%
EBIT growth 3Y-1.7%
EBIT growth 5Y-12.85%
EBIT Next Year465.93%
EBIT Next 3Y107.92%
EBIT Next 5YN/A
FCF growth 1Y228.77%
FCF growth 3YN/A
FCF growth 5Y-15.15%
OCF growth 1Y1566.27%
OCF growth 3YN/A
OCF growth 5Y-14.24%

AECON GROUP INC / ARE.CA Fundamental Analysis FAQ

What is the fundamental rating for ARE stock?

ChartMill assigns a fundamental rating of 4 / 10 to ARE.CA.


What is the valuation status of AECON GROUP INC (ARE.CA) stock?

ChartMill assigns a valuation rating of 2 / 10 to AECON GROUP INC (ARE.CA). This can be considered as Overvalued.


How profitable is AECON GROUP INC (ARE.CA) stock?

AECON GROUP INC (ARE.CA) has a profitability rating of 2 / 10.


Can you provide the PE and PB ratios for ARE stock?

The Price/Earnings (PE) ratio for AECON GROUP INC (ARE.CA) is 123.24 and the Price/Book (PB) ratio is 3.84.


What is the earnings growth outlook for AECON GROUP INC?

The Earnings per Share (EPS) of AECON GROUP INC (ARE.CA) is expected to grow by 277.55% in the next year.