NORTH AMERICAN CONSTRUCTION (NOA.CA) Stock Fundamental Analysis
TSX:NOA - Toronto Stock Exchange - CA6568111067 - Common Stock - Currency: CAD
NOA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 27 industry peers in the Energy Equipment & Services industry. NOA has a medium profitability rating, but doesn't score so well on its financial health evaluation. NOA is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
NOA had positive earnings in the past year.
In the past year NOA had a positive cash flow from operations.
Of the past 5 years NOA 4 years were profitable.
Of the past 5 years NOA 4 years had a positive operating cash flow.
1.2 Ratios
NOA has a Return On Assets of 3.36%. This is comparable to the rest of the industry: NOA outperforms 44.44% of its industry peers.
NOA has a Return On Equity (14.52%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 9.86%, NOA is in line with its industry, outperforming 59.26% of the companies in the same industry.
NOA had an Average Return On Invested Capital over the past 3 years of 5.87%. This is significantly below the industry average of 12.47%.
The last Return On Invested Capital (9.86%) for NOA is above the 3 year average (5.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 14.52% | ||
| ROIC | 9.86% |
ROA(3y)5.62%
ROA(5y)5.48%
ROE(3y)19.4%
ROE(5y)19.69%
ROIC(3y)5.87%
ROIC(5y)5.78%
1.3 Margins
Looking at the Profit Margin, with a value of 4.80%, NOA is in line with its industry, outperforming 48.15% of the companies in the same industry.
In the last couple of years the Profit Margin of NOA has grown nicely.
NOA has a better Operating Margin (15.06%) than 88.89% of its industry peers.
NOA's Operating Margin has improved in the last couple of years.
The Gross Margin of NOA (19.68%) is worse than 62.96% of its industry peers.
In the last couple of years the Gross Margin of NOA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.06% | ||
| PM (TTM) | 4.8% | ||
| GM | 19.68% |
OM growth 3Y8.46%
OM growth 5Y5.74%
PM growth 3Y-12.58%
PM growth 5Y12.09%
GM growth 3Y6.19%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NOA is still creating some value.
NOA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that NOA is in the distress zone and has some risk of bankruptcy.
NOA's Altman-Z score of 1.54 is in line compared to the rest of the industry. NOA outperforms 44.44% of its industry peers.
A Debt/Equity ratio of 1.85 is on the high side and indicates that NOA has dependencies on debt financing.
The Debt to Equity ratio of NOA (1.85) is worse than 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.54 |
ROIC/WACC1.21
WACC8.14%
2.3 Liquidity
NOA has a Current Ratio of 1.13. This is a normal value and indicates that NOA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NOA (1.13) is worse than 74.07% of its industry peers.
A Quick Ratio of 0.88 indicates that NOA may have some problems paying its short term obligations.
The Quick ratio of NOA (0.88) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
NOA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.26%, which is quite good.
Measured over the past years, NOA shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.98% on average per year.
The Revenue has grown by 36.41% in the past year. This is a very strong growth!
The Revenue has been growing by 18.48% on average over the past years. This is quite good.
EPS 1Y (TTM)17.26%
EPS 3Y17.07%
EPS 5Y40.98%
EPS Q2Q%116.67%
Revenue 1Y (TTM)36.41%
Revenue growth 3Y24.3%
Revenue growth 5Y18.48%
Sales Q2Q%42.69%
3.2 Future
The Earnings Per Share is expected to grow by 12.82% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.55% on average over the next years. This is quite good.
EPS Next Y21.98%
EPS Next 2Y20.03%
EPS Next 3Y12.82%
EPS Next 5YN/A
Revenue Next Year25.48%
Revenue Next 2Y16.58%
Revenue Next 3Y12.55%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.35, which indicates a rather cheap valuation of NOA.
Compared to the rest of the industry, the Price/Earnings ratio of NOA indicates a rather cheap valuation: NOA is cheaper than 81.48% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 30.19. NOA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.47 indicates a rather cheap valuation of NOA.
Based on the Price/Forward Earnings ratio, NOA is valued a bit cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.58. NOA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 6.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NOA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
NOA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NOA's earnings are expected to grow with 12.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)0.18
EPS Next 2Y20.03%
EPS Next 3Y12.82%
5. Dividend
5.1 Amount
NOA has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
NOA's Dividend Yield is a higher than the industry average which is at 14.05.
Compared to the average S&P500 Dividend Yield of 2.30, NOA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
The dividend of NOA is nicely growing with an annual growth rate of 36.56%!
NOA has been paying a dividend for at least 10 years, so it has 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)36.56%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
NOA pays out 18.68% of its income as dividend. This is a sustainable payout ratio.
NOA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.68%
EPS Next 2Y20.03%
EPS Next 3Y12.82%
NORTH AMERICAN CONSTRUCTION
TSX:NOA (2/14/2025, 7:00:00 PM)
26.46
-0.16 (-0.6%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners78.76%
Inst Owner ChangeN/A
Ins Owners9.76%
Ins Owner ChangeN/A
Market Cap735.06M
Analysts82.5
Price Target40.6 (53.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend0.38
Dividend Growth(5Y)36.56%
DP18.68%
Div Incr Years3
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.57%
Min EPS beat(2)-16.96%
Max EPS beat(2)5.82%
EPS beat(4)2
Avg EPS beat(4)-1.02%
Min EPS beat(4)-16.96%
Max EPS beat(4)19.73%
EPS beat(8)5
Avg EPS beat(8)10.54%
EPS beat(12)6
Avg EPS beat(12)2.23%
EPS beat(16)9
Avg EPS beat(16)5.52%
Revenue beat(2)0
Avg Revenue beat(2)-13.21%
Min Revenue beat(2)-16.8%
Max Revenue beat(2)-9.63%
Revenue beat(4)0
Avg Revenue beat(4)-9.15%
Min Revenue beat(4)-16.8%
Max Revenue beat(4)-4.76%
Revenue beat(8)2
Avg Revenue beat(8)-4.56%
Revenue beat(12)3
Avg Revenue beat(12)-4.24%
Revenue beat(16)5
Avg Revenue beat(16)-3.18%
PT rev (1m)0%
PT rev (3m)-2.13%
EPS NQ rev (1m)-19.84%
EPS NQ rev (3m)-7.27%
EPS NY rev (1m)-9.8%
EPS NY rev (3m)-12.64%
Revenue NQ rev (1m)-6.89%
Revenue NQ rev (3m)-11.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 6.47 | ||
| P/S | 0.62 | ||
| P/FCF | N/A | ||
| P/OCF | 2.63 | ||
| P/B | 1.88 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 4.31 |
EPS(TTM)3.6
EY13.61%
EPS(NY)4.09
Fwd EY15.46%
FCF(TTM)-0.61
FCFYN/A
OCF(TTM)10.08
OCFY38.08%
SpS42.71
BVpS14.11
TBVpS13.75
PEG (NY)0.33
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 14.52% | ||
| ROCE | 12.86% | ||
| ROIC | 9.86% | ||
| ROICexc | 10.44% | ||
| ROICexgc | 10.52% | ||
| OM | 15.06% | ||
| PM (TTM) | 4.8% | ||
| GM | 19.68% | ||
| FCFM | N/A |
ROA(3y)5.62%
ROA(5y)5.48%
ROE(3y)19.4%
ROE(5y)19.69%
ROIC(3y)5.87%
ROIC(5y)5.78%
ROICexc(3y)6.29%
ROICexc(5y)6.09%
ROICexgc(3y)6.35%
ROICexgc(5y)6.12%
ROCE(3y)7.67%
ROCE(5y)7.54%
ROICexcg growth 3Y14.26%
ROICexcg growth 5Y7.39%
ROICexc growth 3Y14.03%
ROICexc growth 5Y7.25%
OM growth 3Y8.46%
OM growth 5Y5.74%
PM growth 3Y-12.58%
PM growth 5Y12.09%
GM growth 3Y6.19%
GM growth 5Y-0.89%
F-Score5
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 181.13% | ||
| Cap/Sales | 25.02% | ||
| Interest Coverage | 3.91 | ||
| Cash Conversion | 81.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.54 |
F-Score5
WACC8.14%
ROIC/WACC1.21
Cap/Depr(3y)118.98%
Cap/Depr(5y)128.61%
Cap/Sales(3y)17.88%
Cap/Sales(5y)19.81%
Profit Quality(3y)95.32%
Profit Quality(5y)69.34%
High Growth Momentum
Growth
EPS 1Y (TTM)17.26%
EPS 3Y17.07%
EPS 5Y40.98%
EPS Q2Q%116.67%
EPS Next Y21.98%
EPS Next 2Y20.03%
EPS Next 3Y12.82%
EPS Next 5YN/A
Revenue 1Y (TTM)36.41%
Revenue growth 3Y24.3%
Revenue growth 5Y18.48%
Sales Q2Q%42.69%
Revenue Next Year25.48%
Revenue Next 2Y16.58%
Revenue Next 3Y12.55%
Revenue Next 5YN/A
EBIT growth 1Y118.95%
EBIT growth 3Y34.81%
EBIT growth 5Y25.28%
EBIT Next Year224.88%
EBIT Next 3Y54.3%
EBIT Next 5Y37.99%
FCF growth 1Y-138.76%
FCF growth 3Y31.82%
FCF growth 5Y19.1%
OCF growth 1Y78.3%
OCF growth 3Y22.65%
OCF growth 5Y19.84%