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

COMMON STOCK | Engineering & Construction | TSX

Last Closing Price

CAD 18.75

Change

+0.20 (+1.08)%

Market Cap

CAD 1.12B

Volume

0.21M

Average Target Price

CAD 21.05 (+12.24%)
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.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-05-05 )

Largest Industry Peers for Engineering & Construction

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

+1.09 (+0.86%)

CAD14.41B 50.77 15.14
STN:CA Stantec Inc

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CAD6.38B 37.58 14.90
SNC:CA SNC-Lavalin Group Inc

+0.42 (+1.54%)

CAD4.80B 1.55 1.55
BAD:CA Badger Daylighting Ltd

-0.07 (-0.17%)

CAD1.46B 59.08 13.89
BDT:CA Bird Construction Inc

-0.05 (-0.54%)

CAD0.49B 11.62 5.41
DXT:CA Dexterra Group Inc

+0.01 (+0.17%)

CAD0.39B 4.85 4.73
HNL:CA Dexterra Group Inc

-1.75 (-3.58%)

CAD0.37B 3.28 9.51
DRT:CA DIRTT Environmental Solutions ..

+0.31 (+7.29%)

CAD0.36B 79.50 124.25
IBG:CA IBI Group Inc

-0.02 (-0.20%)

CAD0.32B 21.66 7.43
E:CA Enterprise Group, Inc

N/A

CAD9.64M 31.00 10.10

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 14.61% 45% F 68% D+
Dividend Return 1.07% 83% B 60% D-
Total Return 15.68% 45% F 69% D+
Trailing 12 Months  
Capital Gain 28.69% 20% F 46% F
Dividend Return 4.50% 86% B 67% D+
Total Return 33.18% 30% F 49% F
Trailing 5 Years  
Capital Gain 13.22% 50% F 44% F
Dividend Return 16.55% 71% C- 60% D-
Total Return 29.77% 50% F 47% F
Average Annual (5 Year Horizon)  
Capital Gain 0.23% 50% F 33% F
Dividend Return 3.16% 71% C- 77% C+
Total Return 3.38% 50% F 45% F
Risk Return Profile  
Volatility (Standard Deviation) 18.38% 80% B- 48% F
Risk Adjusted Return 18.39% 60% D- 36% F
Market Capitalization 1.12B 64% D 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 15.48 64% D 47% F
Price/Book Ratio 1.33 73% C 64% D
Price / Cash Flow Ratio 4.11 82% B- 67% D+
EV/EBITDA 5.20 82% B- 82% B-
Management Effectiveness  
Return on Equity 9.61% 70% C- 65% D
Return on Invested Capital 6.45% 45% F 70% C-
Return on Assets 1.02% 45% F 48% F
Debt to Equity Ratio 76.82% 18% F 36% F
Technical Ratios  
Short Ratio 5.06 36% F 20% F
Short Percent N/A N/A N/A N/A N/A
Beta 0.95 90% A- 61% 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 Rating

Target Price Action Rating Action Analyst Rating Price Date

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:
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 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.

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.

Poor return on assets

The company management has delivered below median return on assets 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.