ARE Stock Overview
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.
Aecon Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$13.43|
|52 Week High||CA$22.28|
|52 Week Low||CA$12.98|
|1 Month Change||-10.17%|
|3 Month Change||-21.05%|
|1 Year Change||-24.76%|
|3 Year Change||-29.94%|
|5 Year Change||-16.79%|
|Change since IPO||-80.07%|
Recent News & Updates
Is Now The Time To Look At Buying Aecon Group Inc. (TSE:ARE)?
Aecon Group Inc. ( TSE:ARE ), is not the largest company out there, but it saw significant share price movement during...
|ARE||CA Construction||CA Market|
Return vs Industry: ARE underperformed the Canadian Construction industry which returned -11.6% over the past year.
Return vs Market: ARE underperformed the Canadian Market which returned -4% over the past year.
|ARE Average Weekly Movement||3.9%|
|Construction Industry Average Movement||4.8%|
|Market Average Movement||10.0%|
|10% most volatile stocks in CA Market||17.3%|
|10% least volatile stocks in CA Market||4.4%|
Stable Share Price: ARE is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ARE's weekly volatility (4%) has been stable over the past year.
About the Company
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.
Aecon Group Fundamentals Summary
|ARE fundamental statistics|
Is ARE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ARE income statement (TTM)|
|Cost of Revenue||CA$3.88b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Jul 28, 2022
|Earnings per share (EPS)||0.83|
|Net Profit Margin||1.20%|
How did ARE perform over the long term?See historical performance and comparison
5.5%Current Dividend Yield
Is ARE undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ARE?
Other financial metrics that can be useful for relative valuation.
|What is ARE's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does ARE's PE Ratio compare to its peers?
|ARE PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
BDT Bird Construction
SNC SNC-Lavalin Group
WSP WSP Global
AFN Ag Growth International
ARE Aecon Group
Price-To-Earnings vs Peers: ARE is good value based on its Price-To-Earnings Ratio (16.2x) compared to the peer average (39.9x).
Price to Earnings Ratio vs Industry
How does ARE's PE Ratio compare vs other companies in the North American Construction Industry?
Price-To-Earnings vs Industry: ARE is good value based on its Price-To-Earnings Ratio (16.2x) compared to the North American Construction industry average (23.9x)
Price to Earnings Ratio vs Fair Ratio
What is ARE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||16.2x|
|Fair PE Ratio||21.5x|
Price-To-Earnings vs Fair Ratio: ARE is good value based on its Price-To-Earnings Ratio (16.2x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).
Share Price vs Fair Value
What is the Fair Price of ARE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ARE (CA$13.43) is trading below our estimate of fair value (CA$30.05)
Significantly Below Fair Value: ARE is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: ARE is good value based on its PEG Ratio (0.6x)
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How is Aecon Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARE's forecast earnings growth (24.9% per year) is above the savings rate (1.6%).
Earnings vs Market: ARE's earnings (24.9% per year) are forecast to grow faster than the Canadian market (8.2% per year).
High Growth Earnings: ARE's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ARE's revenue (0.9% per year) is forecast to grow slower than the Canadian market (6.9% per year).
High Growth Revenue: ARE's revenue (0.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARE's Return on Equity is forecast to be low in 3 years time (8.2%).
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How has Aecon Group performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARE has a high level of non-cash earnings.
Growing Profit Margin: ARE's current net profit margins (1.2%) are lower than last year (2.2%).
Past Earnings Growth Analysis
Earnings Trend: ARE's earnings have grown by 13.8% per year over the past 5 years.
Accelerating Growth: ARE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ARE had negative earnings growth (-37.5%) over the past year, making it difficult to compare to the Construction industry average (-0.1%).
Return on Equity
High ROE: ARE's Return on Equity (5.7%) is considered low.
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How is Aecon Group's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ARE's short term assets (CA$2.1B) exceed its short term liabilities (CA$1.5B).
Long Term Liabilities: ARE's short term assets (CA$2.1B) exceed its long term liabilities (CA$901.4M).
Debt to Equity History and Analysis
Debt Level: ARE's net debt to equity ratio (28.8%) is considered satisfactory.
Reducing Debt: ARE's debt to equity ratio has reduced from 96.6% to 77.3% over the past 5 years.
Debt Coverage: ARE's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: ARE's interest payments on its debt are not well covered by EBIT (1.4x coverage).
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What is Aecon Group current dividend yield, its reliability and sustainability?
Dividend Score 6/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARE's dividend (5.51%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).
High Dividend: ARE's dividend (5.51%) is in the top 25% of dividend payers in the Canadian market (5.33%)
Stability and Growth of Payments
Stable Dividend: ARE's dividends per share have been stable in the past 10 years.
Growing Dividend: ARE's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: At its current payout ratio (84.8%), ARE's payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: ARE is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jean-Louis Servranckx (60 yo)
Mr. Jean-Louis Servranckx has been President and Chief Executive Officer of Aecon Group Inc. since September 4, 2018 and serves as its Director since October 25, 2018. He has experience in the construction...
CEO Compensation Analysis
Compensation vs Market: Jean-Louis's total compensation ($USD5.37M) is above average for companies of similar size in the Canadian market ($USD1.57M).
Compensation vs Earnings: Jean-Louis's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: ARE's management team is seasoned and experienced (5.5 years average tenure).
Experienced Board: ARE's board of directors are considered experienced (5.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Aecon Group Inc.'s employee growth, exchange listings and data sources
- Name: Aecon Group Inc.
- Ticker: ARE
- Exchange: TSX
- Founded: 1877
- Industry: Construction and Engineering
- Sector: Capital Goods
- Implied Market Cap: CA$808.494m
- Shares outstanding: 60.93m
- Website: https://www.aecon.com
Number of Employees
- Aecon Group Inc.
- 20 Carlson Court
- Suite 105
- M9W 7K6
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/27 00:00|
|End of Day Share Price||2022/06/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.