NORTH AMERICAN CONSTRUCTION (NOA.CA) Stock Fundamental Analysis
TSX:NOA - Toronto Stock Exchange - CA6568111067 - Common Stock - Currency: CAD
NOA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 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
NOA had positive earnings in the past year.
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
NOA has a worse Return On Assets (2.17%) than 64.29% of its industry peers.
The Return On Equity of NOA (8.42%) is comparable to the rest of the industry.
NOA's Return On Invested Capital of 7.63% is in line compared to the rest of the industry. NOA outperforms 53.57% 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 10.72%.
The last Return On Invested Capital (7.63%) for NOA is above the 3 year average (6.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 8.42% | ||
| ROIC | 7.63% |
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
NOA's Profit Margin of 3.21% is on the low side compared to the rest of the industry. NOA is outperformed by 60.71% of its industry peers.
In the last couple of years the Profit Margin of NOA has declined.
Looking at the Operating Margin, with a value of 12.00%, NOA is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of NOA has grown nicely.
NOA has a worse Gross Margin (16.09%) than 67.86% of its industry peers.
NOA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12% | ||
| PM (TTM) | 3.21% | ||
| GM | 16.09% |
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.
The number of shares outstanding for NOA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, NOA has more shares outstanding
The debt/assets ratio for NOA is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that NOA is in the distress zone and has some risk of bankruptcy.
NOA has a worse Altman-Z score (1.36) than 64.29% of its industry peers.
A Debt/Equity ratio of 1.44 is on the high side and indicates that NOA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.44, NOA is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACC0.87
WACC8.81%
2.3 Liquidity
A Current Ratio of 0.92 indicates that NOA may have some problems paying its short term obligations.
The Current ratio of NOA (0.92) is worse than 85.71% of its industry peers.
NOA has a Quick Ratio of 0.92. This is a bad value and indicates that NOA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NOA (0.74) is worse than 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.45% 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.13%.
NOA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.15% yearly.
EPS 1Y (TTM)30.45%
EPS 3Y21.88%
EPS 5Y19.82%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)19.13%
Revenue growth 3Y21.24%
Revenue growth 5Y10.15%
Sales Q2Q%14.75%
3.2 Future
Based on estimates for the next years, NOA will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.59% on average per year.
NOA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.34% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NOA is valuated cheaply with a Price/Earnings ratio of 6.79.
Based on the Price/Earnings ratio, NOA is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of NOA to the average of the S&P500 Index (25.82), we can say NOA is valued rather cheaply.
The Price/Forward Earnings ratio is 5.80, which indicates a rather cheap valuation of NOA.
Based on the Price/Forward Earnings ratio, NOA is valued a bit cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. NOA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.79 | ||
| Fwd PE | 5.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NOA does not grow enough to justify the current Price/Earnings ratio.
NOA's earnings are expected to decrease with -10.59% in the coming years. This may justify a cheaper valuation.
PEG (NY)2.38
PEG (5Y)0.34
EPS Next 2Y4.35%
EPS Next 3Y-10.59%
5. Dividend
5.1 Amount
NOA has a Yearly Dividend Yield of 2.09%.
Compared to an average industry Dividend Yield of 19.79, NOA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, NOA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
5.2 History
The dividend of NOA is nicely growing with an annual growth rate of 31.86%!
NOA has paid a dividend for at least 10 years, which is 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
28.27% of the earnings are spent on dividend by NOA. This is a low number and sustainable payout ratio.
DP28.27%
EPS Next 2Y4.35%
EPS Next 3Y-10.59%
TSX:NOA (5/23/2025, 7:00:00 PM)
23.57
-0.1 (-0.42%)
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 Cap693.67M
Analysts82.22
Price Target40.65 (72.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend0.4
Dividend Growth(5Y)31.86%
DP28.27%
Div Incr Years3
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.64%
Min EPS beat(2)-33.48%
Max EPS beat(2)-1.79%
EPS beat(4)1
Avg EPS beat(4)-11.6%
Min EPS beat(4)-33.48%
Max EPS beat(4)5.82%
EPS beat(8)3
Avg EPS beat(8)-1.19%
EPS beat(12)5
Avg EPS beat(12)-0.03%
EPS beat(16)7
Avg EPS beat(16)-0.74%
Revenue beat(2)1
Avg Revenue beat(2)2.69%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)8.8%
Revenue beat(4)1
Avg Revenue beat(4)-5.26%
Min Revenue beat(4)-16.8%
Max Revenue beat(4)8.8%
Revenue beat(8)1
Avg Revenue beat(8)-5.09%
Revenue beat(12)4
Avg Revenue beat(12)-2.77%
Revenue beat(16)5
Avg Revenue beat(16)-2.84%
PT rev (1m)-2.11%
PT rev (3m)-3.13%
EPS NQ rev (1m)6.89%
EPS NQ rev (3m)7.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.08%
Revenue NQ rev (1m)7.55%
Revenue NQ rev (3m)12.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.79 | ||
| Fwd PE | 5.8 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | 2.7 | ||
| P/B | 1.5 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 4.35 |
EPS(TTM)3.47
EY14.72%
EPS(NY)4.06
Fwd EY17.23%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)8.74
OCFY37.07%
SpS41.1
BVpS15.7
TBVpS15.35
PEG (NY)2.38
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 8.42% | ||
| ROCE | 10.39% | ||
| ROIC | 7.63% | ||
| ROICexc | 8.08% | ||
| ROICexgc | 8.14% | ||
| OM | 12% | ||
| PM (TTM) | 3.21% | ||
| GM | 16.09% | ||
| 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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 169.25% | ||
| Cap/Sales | 25.67% | ||
| Interest Coverage | 2.13 | ||
| Cash Conversion | 78.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.36 |
F-Score6
WACC8.81%
ROIC/WACC0.87
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)30.45%
EPS 3Y21.88%
EPS 5Y19.82%
EPS Q2Q%-33.33%
EPS Next Y2.86%
EPS Next 2Y4.35%
EPS Next 3Y-10.59%
EPS Next 5YN/A
Revenue 1Y (TTM)19.13%
Revenue growth 3Y21.24%
Revenue growth 5Y10.15%
Sales Q2Q%14.75%
Revenue Next Year8.15%
Revenue Next 2Y6.25%
Revenue Next 3Y5.34%
Revenue Next 5YN/A
EBIT growth 1Y32.65%
EBIT growth 3Y54.22%
EBIT growth 5Y21.26%
EBIT Next Year123.85%
EBIT Next 3Y32.78%
EBIT Next 5YN/A
FCF growth 1Y-202.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y45.42%
OCF growth 3Y9.62%
OCF growth 5Y6.62%