NORTH AMERICAN CONSTRUCTION (NOA)
CA6568111067 - Common Stock
Overall NOA gets a fundamental rating of 5 out of 10. We evaluated NOA against 65 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 both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
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.
NOA had positive earnings in each of the past 5 years.
In the past 5 years NOA always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.08%, NOA is doing good in the industry, outperforming 61.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.70%, NOA belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
With a Return On Invested Capital value of 6.10%, NOA perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NOA is below the industry average of 8.49%.
The 3 year average ROIC (5.87%) for NOA is below the current ROIC(6.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 17.7% | ||
| ROIC | 6.1% |
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 6.60%, NOA is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of NOA has grown nicely.
NOA has a Operating Margin (10.17%) which is in line with its industry peers.
NOA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.11%, NOA is doing worse than 81.54% of the companies in the same industry.
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 | 10.17% | ||
| PM (TTM) | 6.6% | ||
| GM | 16.11% |
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
NOA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NOA has more shares outstanding
Compared to 5 years ago, NOA has more shares outstanding
Compared to 1 year ago, NOA has a worse debt to assets ratio.
2.2 Solvency
NOA has an Altman-Z score of 1.32. 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 1.32, NOA is in line with its industry, outperforming 44.62% of the companies in the same industry.
NOA has a debt to FCF ratio of 10.35. This is a negative value and a sign of low solvency as NOA would need 10.35 years to pay back of all of its debts.
NOA has a Debt to FCF ratio (10.35) which is comparable to the rest of the industry.
NOA has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NOA (1.71) is worse than 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 10.35 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.91
WACC6.67%
2.3 Liquidity
A Current Ratio of 0.91 indicates that NOA may have some problems paying its short term obligations.
NOA has a worse Current ratio (0.91) than 95.38% of its industry peers.
NOA has a Quick Ratio of 0.91. This is a bad value and indicates that NOA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.71, NOA is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.85% over the past year.
Measured over the past years, NOA shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.18% on average per year.
The Revenue has grown by 24.39% 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)19.85%
EPS 3Y17.34%
EPS 5Y41.18%
EPS growth Q2Q-21.63%
Revenue 1Y (TTM)24.39%
Revenue growth 3Y24.3%
Revenue growth 5Y18.48%
Revenue growth Q2Q39.79%
3.2 Future
NOA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.41% yearly.
The Revenue is expected to grow by 23.40% on average over the next years. This is a very strong growth
EPS Next Y58.96%
EPS Next 2Y31.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year45.4%
Revenue Next 2Y23.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
NOA is valuated reasonably with a Price/Earnings ratio of 10.77.
80.00% of the companies in the same industry are more expensive than NOA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NOA to the average of the S&P500 Index (24.84), we can say NOA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.63, the valuation of NOA can be described as very cheap.
Based on the Price/Forward Earnings ratio, NOA is valued cheaply inside the industry as 96.92% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, NOA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
64.62% of the companies in the same industry are more expensive than NOA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NOA is valued a bit cheaper than 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.04 | ||
| EV/EBITDA | 6.16 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
NOA's earnings are expected to grow with 31.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)0.26
EPS Next 2Y31.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, NOA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.27, NOA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, NOA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of NOA is nicely growing with an annual growth rate of 36.56%!
NOA has paid a dividend for at least 10 years, which is a reliable track record.
NOA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)36.56%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
NOA pays out 15.89% 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.
DP15.89%
EPS Next 2Y31.41%
EPS Next 3YN/A
NORTH AMERICAN CONSTRUCTION
NYSE:NOA (4/26/2024, 7:06:41 PM)
After market: 22.07 0 (0%)22.07
+0.28 (+1.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap590.00M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 6.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.18
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 17.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.17% | ||
| PM (TTM) | 6.6% | ||
| GM | 16.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.85%
EPS 3Y17.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y58.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.39%
Revenue growth 3Y24.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y