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

COMMON STOCK | Engineering & Construction | TSX

Last Closing Price

CAD 20.16

Change

-0.14 (-0.69)%

Market Cap

CAD 1.22B

Volume

0.17M

Avg Analyst Target

CAD 21.36 (+5.97%)

Avg User Target

CAD
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Aecon Group Inc., together with its subsidiaries, provide construction and infrastructure development services to private and public sector clients in Canada, the United States, and internationally. It operates through two segments, Construction and Concessions. The Construction segment focuses primarily on the civil infrastructure, urban transportation systems, nuclear power infrastructure, utility infrastructure, and conventional industrial infrastructure market sectors. The Concessions segment engages in the development, building, construction, financing, and operation of construction projects by way of public-private partnership contract structures. The company was formerly known as Prefac Concrete Co. Ltd. and changed its name to Aecon Group Inc. in June 2001. Aecon Group Inc. was founded in 1877 and is headquartered in Toronto, Canada. Address: 20 Carlson Court, Toronto, ON, Canada, M9W 7K6

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

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Relative Returns (From:    To: 2021-09-24 )

Largest Industry Peers for Engineering & Construction

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
WSP:CA WSP Global Inc

-2.35 (-1.46%)

CAD18.62B 47.74 19.54
STN:CA Stantec Inc

-0.26 (-0.42%)

CAD6.90B 36.21 15.91
SNC:CA SNC-Lavalin Group Inc

+0.66 (+1.83%)

CAD6.45B 1.55 1.55
BAD:CA Badger Daylighting Ltd

N/A

CAD1.40B 310.00 17.69
BDGI:CA Badger Infrastructure Solution..

+0.16 (+0.44%)

CAD1.26B 6,036.67 17.67
BDT:CA Bird Construction Inc

-0.10 (-1.00%)

CAD0.53B 10.00 6.21
HNL:CA Dexterra Group Inc

N/A

CAD0.37B 3.28 9.51
IBG:CA IBI Group Inc

+0.22 (+1.92%)

CAD0.37B 24.70 7.62
DRT:CA DIRTT Environmental Solutions ..

+0.02 (+0.49%)

CAD0.35B 79.50 121.29

ETFs Containing ARE:CA

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Engineering & Construction)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 23.23% 13% F 74% C
Dividend Return 3.21% 80% B- 75% C
Total Return 26.44% 13% F 75% C
Trailing 12 Months  
Capital Gain 48.13% 13% F 76% C
Dividend Return 5.03% 83% B 77% C+
Total Return 53.16% 13% F 77% C+
Trailing 5 Years  
Capital Gain 12.12% 50% F 47% F
Dividend Return 15.91% 50% F 62% D-
Total Return 28.03% 50% F 50% F
Average Annual (5 Year Horizon)  
Capital Gain 4.37% 38% F 45% F
Dividend Return 3.33% 67% D+ 77% C+
Total Return 7.70% 38% F 52% F
Risk Return Profile  
Volatility (Standard Deviation) 20.51% 75% C 50% F
Risk Adjusted Return 37.54% 75% C 43% F
Market Capitalization 1.22B 56% F 68% D+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Engineering & Construction)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 13.30 67% D+ 53% F
Price/Book Ratio 1.44 89% B+ 55% F
Price / Cash Flow Ratio 4.45 89% B+ 65% D
EV/EBITDA 5.19 89% B+ 77% C+
Management Effectiveness  
Return on Equity 12.60% 75% C 64% D
Return on Invested Capital 6.45% 44% F 70% C-
Return on Assets 1.66% 56% F 46% F
Debt to Equity Ratio 76.82% 22% F 36% F
Technical Ratios  
Short Ratio 8.73 33% F 16% F
Short Percent 2.89% 25% F 47% F
Beta 0.93 89% B+ 63% D
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Ratings

Target Price Action Rating Action Analyst Rating Price Date

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User / Independent Analyst Ratings

User Name Target Rating Target Horizon (Months) Target Price User Analysis Date Comment

Fundamental Analysis Breakdown

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:
Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

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 on cashflow basis

The stock is trading low compared to its peers on a price to 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.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it 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.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What to not like:
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.

Poor capital utilization

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

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.