AECON GROUP INC (ARE.CA) Stock Fundamental Analysis
Canada - TSX:ARE - CA00762V1094 - Common Stock
24.74 CAD
+0.36 (+1.48%)
ARE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 6 industry peers in the Construction & Engineering industry. ARE may be in some trouble as it scores bad on both profitability and health. ARE has a correct valuation and a medium growth rate. ARE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ARE was profitable.
In the past year ARE has reported a negative cash flow from operations.
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
The Return On Assets of ARE (0.72%) is worse than 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 2.81%, ARE is doing worse than 83.33% of the companies in the same industry.
With a Return On Invested Capital value of 2.31%, ARE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| 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's Profit Margin of 0.51% is on the low side compared to the rest of the industry. ARE is outperformed by 83.33% of its industry peers.
The Operating Margin of ARE (0.94%) is worse than 83.33% of its industry peers.
ARE has a worse Gross Margin (7.67%) than 83.33% of its industry peers.
ARE's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, ARE has more shares outstanding
The number of shares outstanding for ARE has been increased compared to 5 years ago.
ARE has a worse debt/assets ratio than last year.
2.2 Solvency
ARE has an Altman-Z score of 2.14. 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 has a Altman-Z score of 2.14. This is amonst the worse of the industry: ARE underperforms 83.33% 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.
ARE has a Debt to Equity ratio of 0.53. This is amongst the best in the industry. ARE outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.14 |
ROIC/WACC0.23
WACC10.27%
2.3 Liquidity
ARE has a Current Ratio of 1.21. 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 worse Current ratio (1.21) than 66.67% of its industry peers.
A Quick Ratio of 1.20 indicates that ARE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, ARE is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 238.71% over the past year.
The Revenue has grown by 20.53% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 4.16% on average over the past years.
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
Based on estimates for the next years, ARE will show a very strong growth in Earnings Per Share. The EPS will grow by 50.62% on average per year.
The Revenue is expected to grow by 10.27% on average over the next years. This is quite good.
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
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
With a Price/Earnings ratio of 57.53, ARE can be considered very expensive at the moment.
ARE's Price/Earnings ratio is rather expensive when compared to the industry. ARE is more expensive than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.49. ARE is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 16.04 indicates a correct valuation of ARE.
Based on the Price/Forward Earnings ratio, ARE is valued cheaper than 83.33% of the companies in the same industry.
ARE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.53 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.51 |
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.
A more expensive valuation may be justified as ARE's earnings are expected to grow with 50.62% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y87.03%
EPS Next 3Y50.62%
5. Dividend
5.1 Amount
ARE has a Yearly Dividend Yield of 3.05%.
ARE's Dividend Yield is rather good when compared to the industry average which is at 1.36. ARE pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, ARE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
The dividend of ARE is nicely growing with an annual growth rate of 6.05%!
ARE has been paying a dividend for at least 10 years, so it has 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
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 (10/14/2025, 7:00:00 PM)
24.74
+0.36 (+1.48%)
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 Cap1.58B
Analysts77.33
Price Target24.02 (-2.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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)1.17%
PT rev (3m)9.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-84.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.53 | ||
| Fwd PE | 16.04 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.78 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 14.51 |
EPS(TTM)0.43
EY1.74%
EPS(NY)1.54
Fwd EY6.24%
FCF(TTM)-1.41
FCFYN/A
OCF(TTM)-0.49
OCFYN/A
SpS76.93
BVpS13.92
TBVpS10.38
PEG (NY)0.49
PEG (5Y)N/A
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
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-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 | 2.14 |
F-Score4
WACC10.27%
ROIC/WACC0.23
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%