NORTH AMERICAN CONSTRUCTION (NOA.CA) Stock Fundamental Analysis
TSX:NOA - CA6568111067 - Common Stock
18.55 CAD
-0.09 (-0.48%)
We assign a fundamental rating of 3 out of 10 to NOA. NOA was compared to 27 industry peers in the Energy Equipment & Services industry. While NOA is still in line with the averages on profitability rating, there are concerns on its financial health. NOA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year NOA was profitable.
NOA had a positive operating cash flow in the past year.
In the past 5 years NOA has always been profitable.
In the past 5 years NOA always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.92%, NOA is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
With a Return On Equity value of 7.63%, NOA perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
NOA has a Return On Invested Capital of 6.62%. This is comparable to the rest of the industry: NOA outperforms 51.85% of its industry peers.
NOA had an Average Return On Invested Capital over the past 3 years of 6.92%. This is below the industry average of 11.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 7.63% | ||
| ROIC | 6.62% |
ROA(3y)4.52%
ROA(5y)5.07%
ROE(3y)17.02%
ROE(5y)17.87%
ROIC(3y)6.92%
ROIC(5y)5.82%
1.3 Margins
Looking at the Profit Margin, with a value of 2.80%, NOA is in line with its industry, outperforming 40.74% of the companies in the same industry.
NOA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.30%, NOA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
NOA's Operating Margin has improved in the last couple of years.
NOA has a Gross Margin of 14.42%. This is in the lower half of the industry: NOA underperforms 70.37% of its industry peers.
In the last couple of years the Gross Margin of NOA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.3% | ||
| PM (TTM) | 2.8% | ||
| GM | 14.42% |
OM growth 3Y27.21%
OM growth 5Y10.09%
PM growth 3Y-21.64%
PM growth 5Y-5.91%
GM growth 3Y14.79%
GM growth 5Y6.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOA is destroying value.
Compared to 1 year ago, NOA has about the same amount of shares outstanding.
NOA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NOA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that NOA is in the distress zone and has some risk of bankruptcy.
NOA's Altman-Z score of 1.27 is on the low side compared to the rest of the industry. NOA is outperformed by 62.96% of its industry peers.
A Debt/Equity ratio of 1.57 is on the high side and indicates that NOA has dependencies on debt financing.
NOA's Debt to Equity ratio of 1.57 is on the low side compared to the rest of the industry. NOA is outperformed by 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.72
WACC9.19%
2.3 Liquidity
NOA has a Current Ratio of 0.94. This is a bad value and indicates that NOA is not financially healthy enough and could expect problems in meeting its short term obligations.
NOA's Current ratio of 0.94 is on the low side compared to the rest of the industry. NOA is outperformed by 74.07% of its industry peers.
A Quick Ratio of 0.75 indicates that NOA may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, NOA is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
NOA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.75%.
The Earnings Per Share has been growing by 19.82% on average over the past years. This is quite good.
The Revenue has grown by 14.35% in the past year. This is quite good.
Measured over the past years, NOA shows a quite strong growth in Revenue. The Revenue has been growing by 10.15% on average per year.
EPS 1Y (TTM)-8.75%
EPS 3Y21.88%
EPS 5Y19.82%
EPS Q2Q%-97.44%
Revenue 1Y (TTM)14.35%
Revenue growth 3Y21.24%
Revenue growth 5Y10.15%
Sales Q2Q%16.04%
3.2 Future
NOA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.20% yearly.
Based on estimates for the next years, NOA will show a small growth in Revenue. The Revenue will grow by 7.40% on average per year.
EPS Next Y-20.59%
EPS Next 2Y0.7%
EPS Next 3Y-3.2%
EPS Next 5YN/A
Revenue Next Year12.56%
Revenue Next 2Y8.11%
Revenue Next 3Y7.4%
Revenue Next 5YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.85 indicates a rather cheap valuation of NOA.
Based on the Price/Earnings ratio, NOA is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.06, NOA is valued rather cheaply.
The Price/Forward Earnings ratio is 4.90, which indicates a rather cheap valuation of NOA.
Based on the Price/Forward Earnings ratio, NOA is valued cheaply inside the industry as 92.59% of the companies are valued more expensively.
NOA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 4.9 |
4.2 Price Multiples
62.96% of the companies in the same industry are more expensive than NOA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.09 |
4.3 Compensation for Growth
A cheap valuation may be justified as NOA's earnings are expected to decrease with -3.20% in the coming years.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y0.7%
EPS Next 3Y-3.2%
5. Dividend
5.1 Amount
NOA has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of NOA has falen by -24.04%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.18, NOA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, NOA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
On average, the dividend of NOA grows each year by 31.86%, which is quite nice.
NOA has paid a dividend for at least 10 years, which is a reliable track record.
NOA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)31.86%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
NOA pays out 33.81% of its income as dividend. This is a sustainable payout ratio.
DP33.81%
EPS Next 2Y0.7%
EPS Next 3Y-3.2%
TSX:NOA (9/5/2025, 7:00:00 PM)
18.55
-0.09 (-0.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners77.48%
Inst Owner ChangeN/A
Ins Owners9.67%
Ins Owner ChangeN/A
Market Cap543.51M
Analysts80
Price Target31.04 (67.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend0.4
Dividend Growth(5Y)31.86%
DP33.81%
Div Incr Years3
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-65.51%
Min EPS beat(2)-97.55%
Max EPS beat(2)-33.48%
EPS beat(4)1
Avg EPS beat(4)-31.75%
Min EPS beat(4)-97.55%
Max EPS beat(4)5.82%
EPS beat(8)2
Avg EPS beat(8)-17.35%
EPS beat(12)5
Avg EPS beat(12)-4.13%
EPS beat(16)7
Avg EPS beat(16)-6.05%
Revenue beat(2)1
Avg Revenue beat(2)1.8%
Min Revenue beat(2)-5.2%
Max Revenue beat(2)8.8%
Revenue beat(4)1
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-9.63%
Max Revenue beat(4)8.8%
Revenue beat(8)1
Avg Revenue beat(8)-5.69%
Revenue beat(12)3
Avg Revenue beat(12)-3.31%
Revenue beat(16)5
Avg Revenue beat(16)-3.06%
PT rev (1m)-21.26%
PT rev (3m)-23.66%
EPS NQ rev (1m)2.44%
EPS NQ rev (3m)31.52%
EPS NY rev (1m)-22.8%
EPS NY rev (3m)-22.8%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)15.74%
Revenue NY rev (1m)-3.01%
Revenue NY rev (3m)4.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 4.9 | ||
| P/S | 0.43 | ||
| P/FCF | N/A | ||
| P/OCF | 2.07 | ||
| P/B | 1.18 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 4.09 |
EPS(TTM)2.71
EY14.61%
EPS(NY)3.78
Fwd EY20.39%
FCF(TTM)-1.6
FCFYN/A
OCF(TTM)8.97
OCFY48.36%
SpS42.8
BVpS15.71
TBVpS15.36
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 7.63% | ||
| ROCE | 9.01% | ||
| ROIC | 6.62% | ||
| ROICexc | 7% | ||
| ROICexgc | 7.06% | ||
| OM | 10.3% | ||
| PM (TTM) | 2.8% | ||
| GM | 14.42% | ||
| FCFM | N/A |
ROA(3y)4.52%
ROA(5y)5.07%
ROE(3y)17.02%
ROE(5y)17.87%
ROIC(3y)6.92%
ROIC(5y)5.82%
ROICexc(3y)7.45%
ROICexc(5y)6.21%
ROICexgc(3y)7.51%
ROICexgc(5y)6.25%
ROCE(3y)9.42%
ROCE(5y)7.93%
ROICexcg growth 3Y25.02%
ROICexcg growth 5Y5.06%
ROICexc growth 3Y24.95%
ROICexc growth 5Y4.89%
OM growth 3Y27.21%
OM growth 5Y10.09%
PM growth 3Y-21.64%
PM growth 5Y-5.91%
GM growth 3Y14.79%
GM growth 5Y6.09%
F-Score6
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 156.16% | ||
| Cap/Sales | 24.7% | ||
| Interest Coverage | 1.84 | ||
| Cash Conversion | 80.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.27 |
F-Score6
WACC9.19%
ROIC/WACC0.72
Cap/Depr(3y)140.73%
Cap/Depr(5y)131.94%
Cap/Sales(3y)20.21%
Cap/Sales(5y)20.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.75%
EPS 3Y21.88%
EPS 5Y19.82%
EPS Q2Q%-97.44%
EPS Next Y-20.59%
EPS Next 2Y0.7%
EPS Next 3Y-3.2%
EPS Next 5YN/A
Revenue 1Y (TTM)14.35%
Revenue growth 3Y21.24%
Revenue growth 5Y10.15%
Sales Q2Q%16.04%
Revenue Next Year12.56%
Revenue Next 2Y8.11%
Revenue Next 3Y7.4%
Revenue Next 5YN/A
EBIT growth 1Y-6.82%
EBIT growth 3Y54.22%
EBIT growth 5Y21.26%
EBIT Next Year123.85%
EBIT Next 3Y32.78%
EBIT Next 5YN/A
FCF growth 1Y-201.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.77%
OCF growth 3Y9.62%
OCF growth 5Y6.62%