NORTH AMERICAN CONSTRUCTION (NOA.CA) Stock Fundamental Analysis
TSX:NOA - Toronto Stock Exchange - CA6568111067 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to NOA. NOA was compared to 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NOA was profitable.
In the past year NOA had a positive cash flow from operations.
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
The Return On Assets of NOA (2.60%) is comparable to the rest of the industry.
The Return On Equity of NOA (11.34%) is comparable to the rest of the industry.
NOA has a Return On Invested Capital of 8.21%. This is in the better half of the industry: NOA outperforms 62.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOA is below the industry average of 9.49%.
The last Return On Invested Capital (8.21%) for NOA is above the 3 year average (6.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 11.34% | ||
| ROIC | 8.21% |
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 3.78%, NOA is in line with its industry, outperforming 48.15% of the companies in the same industry.
NOA's Profit Margin has declined in the last couple of years.
NOA has a better Operating Margin (13.22%) than 88.89% of its industry peers.
NOA's Operating Margin has improved in the last couple of years.
NOA's Gross Margin of 18.02% is on the low side compared to the rest of the industry. NOA is outperformed by 66.67% of its industry peers.
In the last couple of years the Gross Margin of NOA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.22% | ||
| PM (TTM) | 3.78% | ||
| GM | 18.02% |
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
NOA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NOA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NOA has been increased compared to 5 years ago.
Compared to 1 year ago, NOA has a worse debt to assets ratio.
2.2 Solvency
NOA has an Altman-Z score of 1.43. This is a bad value and indicates that NOA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.43, NOA is in line with its industry, outperforming 44.44% of the companies in the same industry.
NOA has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
NOA's Debt to Equity ratio of 1.85 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 | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.93
WACC8.84%
2.3 Liquidity
NOA has a Current Ratio of 1.05. 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 (1.05) is worse than 81.48% of its industry peers.
NOA has a Quick Ratio of 1.05. This is a bad value and indicates that NOA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.81, NOA is doing worse than 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.34% over the past year.
Measured over the past years, NOA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.82% on average per year.
NOA shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.10%.
The Revenue has been growing by 10.15% on average over the past years. This is quite good.
EPS 1Y (TTM)31.34%
EPS 3Y21.88%
EPS 5Y19.82%
EPS Q2Q%14.94%
Revenue 1Y (TTM)21.1%
Revenue growth 3Y21.24%
Revenue growth 5Y10.15%
Sales Q2Q%-5.35%
3.2 Future
The Earnings Per Share is expected to decrease by -10.59% on average over the next years. This is quite bad
The Revenue is expected to grow by 5.34% on average over the next years.
EPS Next Y2.86%
EPS Next 2Y4.35%
EPS Next 3Y-10.59%
EPS Next 5YN/A
Revenue Next Year8.15%
Revenue Next 2Y6.25%
Revenue Next 3Y5.34%
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
With a Price/Earnings ratio of 5.83, the valuation of NOA can be described as very cheap.
Based on the Price/Earnings ratio, NOA is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.18. NOA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.67 indicates a rather cheap valuation of NOA.
77.78% of the companies in the same industry are more expensive than NOA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NOA to the average of the S&P500 Index (20.81), we can say NOA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.83 | ||
| Fwd PE | 5.67 |
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 | 4.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of NOA may justify a higher PE ratio.
A cheap valuation may be justified as NOA's earnings are expected to decrease with -10.59% in the coming years.
PEG (NY)2.04
PEG (5Y)0.29
EPS Next 2Y4.35%
EPS Next 3Y-10.59%
5. Dividend
5.1 Amount
NOA has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
The stock price of NOA dropped by -21.20% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NOA's Dividend Yield is a higher than the industry average which is at 19.16.
Compared to an average S&P500 Dividend Yield of 2.45, NOA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
On average, the dividend of NOA grows each year by 31.86%, which is quite nice.
NOA has been paying a dividend for at least 10 years, so it has a reliable track record.
NOA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)31.86%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
24.14% of the earnings are spent on dividend by NOA. This is a low number and sustainable payout ratio.
DP24.14%
EPS Next 2Y4.35%
EPS Next 3Y-10.59%
TSX:NOA (5/2/2025, 7:00:00 PM)
21.75
+0.4 (+1.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.18%
Inst Owner ChangeN/A
Ins Owners10.03%
Ins Owner ChangeN/A
Market Cap667.73M
Analysts82.22
Price Target40.65 (86.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend0.4
Dividend Growth(5Y)31.86%
DP24.14%
Div Incr Years3
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.02%
Min EPS beat(2)-1.79%
Max EPS beat(2)5.82%
EPS beat(4)2
Avg EPS beat(4)1.7%
Min EPS beat(4)-16.96%
Max EPS beat(4)19.73%
EPS beat(8)4
Avg EPS beat(8)5.16%
EPS beat(12)5
Avg EPS beat(12)1.75%
EPS beat(16)8
Avg EPS beat(16)3.28%
Revenue beat(2)0
Avg Revenue beat(2)-6.52%
Min Revenue beat(2)-9.63%
Max Revenue beat(2)-3.42%
Revenue beat(4)0
Avg Revenue beat(4)-8.81%
Min Revenue beat(4)-16.8%
Max Revenue beat(4)-3.42%
Revenue beat(8)1
Avg Revenue beat(8)-5.83%
Revenue beat(12)3
Avg Revenue beat(12)-4.42%
Revenue beat(16)4
Avg Revenue beat(16)-3.64%
PT rev (1m)-3.13%
PT rev (3m)0.14%
EPS NQ rev (1m)-24.06%
EPS NQ rev (3m)-25.41%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-6.23%
Revenue NQ rev (1m)-1.03%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.83 | ||
| Fwd PE | 5.67 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | 3.07 | ||
| P/B | 1.72 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 4.34 |
EPS(TTM)3.73
EY17.15%
EPS(NY)3.84
Fwd EY17.64%
FCF(TTM)-2.17
FCFYN/A
OCF(TTM)7.09
OCFY32.59%
SpS37.97
BVpS12.67
TBVpS12.35
PEG (NY)2.04
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 11.34% | ||
| ROCE | 11.18% | ||
| ROIC | 8.21% | ||
| ROICexc | 8.7% | ||
| ROICexgc | 8.77% | ||
| OM | 13.22% | ||
| PM (TTM) | 3.78% | ||
| GM | 18.02% | ||
| 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-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 170.59% | ||
| Cap/Sales | 24.39% | ||
| Interest Coverage | 2.39 | ||
| Cash Conversion | 67.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.43 |
F-Score7
WACC8.84%
ROIC/WACC0.93
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)31.34%
EPS 3Y21.88%
EPS 5Y19.82%
EPS Q2Q%14.94%
EPS Next Y2.86%
EPS Next 2Y4.35%
EPS Next 3Y-10.59%
EPS Next 5YN/A
Revenue 1Y (TTM)21.1%
Revenue growth 3Y21.24%
Revenue growth 5Y10.15%
Sales Q2Q%-5.35%
Revenue Next Year8.15%
Revenue Next 2Y6.25%
Revenue Next 3Y5.34%
Revenue Next 5YN/A
EBIT growth 1Y57.52%
EBIT growth 3Y54.22%
EBIT growth 5Y21.26%
EBIT Next Year122.75%
EBIT Next 3Y32.78%
EBIT Next 5YN/A
FCF growth 1Y-199.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.52%
OCF growth 3Y9.62%
OCF growth 5Y6.62%