ARE:CA:TSX-Aecon Group Inc. (CAD)

EQUITY | Engineering & Construction | Toronto Stock Exchange

Last Closing

CAD 17.17

Change

+0.09 (+0.53)%

Market Cap

CAD 0.85B

Volume

0.36M

Analyst Target

CAD 19.95
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

Aecon Group Inc and its subsidiaries provides construction and infrastructure development services to private and public sector customers throughout Canada. Its segments are Infrastructure, Energy, Mining and Concessions.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

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Relative Returns (From:    To: 2024-05-15 )

Largest Industry Peers for Engineering & Construction

Symbol Name Price(Change) Market Cap
WSP:CA WSP Global Inc

-1.19 (-0.47%)

CAD 31.16B
STN:CA Stantec Inc

-0.80 (-0.70%)

CAD 13.02B
ATRL:CA SNC-Lavalin Group Inc.

+0.24 (+0.36%)

CAD 11.77B
BDT:CA Bird Construction Inc.

+0.11 (+0.36%)

CAD 1.70B
BDGI:CA Badger Infrastructure Solution..

+0.82 (+2.07%)

CAD 1.37B
DRT:CA DIRTT Environmental Solutions ..

+0.03 (+3.33%)

CAD 0.18B

ETFs Containing ARE:CA

N/A

Market Performance

  Market Performance vs. Industry/Classification (Engineering & Construction) Market Performance vs. Exchange (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 31.37% 71% C- 93% A
Dividend Return 1.45% 100% F 57% F
Total Return 32.82% 71% C- 93% A
Trailing 12 Months  
Capital Gain 30.67% 33% F 85% B
Dividend Return 5.67% 100% F 79% B-
Total Return 36.34% 33% F 88% B+
Trailing 5 Years  
Capital Gain -8.67% 40% F 30% F
Dividend Return 18.32% 75% C 82% B
Total Return 9.65% 40% F 38% F
Average Annual (5 Year Horizon)  
Capital Gain -3.14% 33% F 23% F
Dividend Return 1.46% 33% F 42% F
Total Return 4.60% 80% B- 89% A-
Risk Return Profile  
Volatility (Standard Deviation) 28.74% 50% F 32% F
Risk Adjusted Return 5.08% 33% F 36% F
Market Capitalization 0.85B 29% F 72% C

Key Financial Ratios

  Ratio vs. Industry/Classification (Engineering & Construction) Ratio vs. Market (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 12.60 100% 73%
Price/Book Ratio 1.01 100% 64%
Price / Cash Flow Ratio 21.04 43% 11%
Price/Free Cash Flow Ratio 2.19 83% 65%
Management Effectiveness  
Return on Equity 16.62% 57% 86%
Return on Invested Capital -0.08% 29% 31%
Return on Assets 0.03% 17% 28%
Debt to Equity Ratio 10.03% 100% 86%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector