TSX:NOA

Stock Analysis Report

North American Construction Group

Executive Summary

North American Construction Group Ltd. provides mining and heavy construction services to resource development and industrial construction sectors in Canada.

Snowflake

Fundamentals

Proven track record with reasonable growth potential.


Similar Companies

Share Price & News

How has North American Construction Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

NOA

-0.6%

CA Energy Services

-0.3%

CA Market


1 Year Return

-1.0%

NOA

-36.9%

CA Energy Services

0.9%

CA Market

Return vs Industry: NOA exceeded the Canadian Energy Services industry which returned -36.9% over the past year.

Return vs Market: NOA underperformed the Canadian Market which returned 0.9% over the past year.


Share holder returns

NOAIndustryMarket
7 Day0.6%-0.6%-0.3%
30 Day-11.3%-11.1%-2.1%
90 Day7.1%-16.7%-1.5%
1 Year-0.4%-1.0%-35.1%-36.9%4.4%0.9%
3 Year272.7%260.8%-40.6%-44.9%15.7%5.4%
5 Year149.6%129.8%-68.7%-72.1%26.1%7.9%

Price Volatility Vs. Market

How volatile is North American Construction Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is North American Construction Group undervalued based on future cash flows and its price relative to the stock market?

34%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: NOA (CA$14.25) is trading below our estimate of fair value (CA$21.71)

Significantly Undervalued: NOA is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: NOA is good value based on its PE Ratio (14.2x) compared to the Energy Services industry average (16.1x).

PE vs Market: NOA is poor value based on its PE Ratio (14.2x) compared to the Canadian market (13.7x).


Price Based on Expected Growth

Low PEG Ratio: NOA is good value based on its PEG Ratio (0.5x)


Price Based on Value of Assets

PB vs Industry: NOA is overvalued based on its PB Ratio (2.1x) compared to the CA Energy Services industry average (0.8x).


Next Steps

Future Growth

How is North American Construction Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

30.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: NOA's forecast earnings growth (30.3% per year) is above the savings rate (1.9%).

Earnings vs Market: NOA's earnings (30.3% per year) are forecast to grow faster than the Canadian market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NOA's revenue (13.4% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: NOA's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if NOA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has North American Construction Group performed over the past 5 years?

68.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NOA has become profitable over the past 5 years, growing earnings by 68.4% per year.

Accelerating Growth: NOA's earnings growth over the past year (93.4%) exceeds its 5-year average (68.4% per year).

Earnings vs Industry: NOA earnings growth over the past year (93.4%) exceeded the Energy Services industry 15.8%.


Return on Equity

High ROE: NOA's Return on Equity (14.6%) is considered low.


Return on Assets

ROA vs Industry: NOA's Return on Assets is below or equal to the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: NOA has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is North American Construction Group's financial position?


Financial Position Analysis

Short Term Liabilities: NOA's short term assets (CA$148.1M) do not cover its short term liabilities (CA$177.7M)

Long Term Liabilities: NOA's short term assets (148.1M) do not cover its long term liabilities (423.6M)


Debt to Equity History and Analysis

Debt Level: NOA's debt to equity ratio (178.6%) is considered high

Reducing Debt: NOA's debt to equity ratio has increased from 34.5% to 178.6% over the past 5 years.

Debt Coverage: NOA's debt is well covered by operating cash flow (40.4%).

Interest Coverage: NOA's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: NOA has a high level of physical assets or inventory.

Debt Coverage by Assets: NOA's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is North American Construction Group's current dividend yield, its reliability and sustainability?

0.77%

Expected Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.0%markettop25%6.0%industryaverage4.6%forecastin3Years0.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: NOA's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: NOA's dividend (1.12%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

Stable Dividend: NOA is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: NOA is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NOA is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NOA's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of North American Construction Group's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Martin Ferron (62yo)

7.3yrs

Tenure

CA$2,788,866

Compensation

Mr. Martin R. Ferron has been the Chief Executive Officer of North American Energy Partners Inc. since June 7, 2012. He has been the Chairman of North American Energy Partners Inc. since October 31, 2017 a ...


CEO Compensation Analysis

Compensation vs. Market: Martin's total compensation ($USD2.12M) is about average for companies of similar size in the Canadian market ($USD684.65K).

Compensation vs Earnings: Martin's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.5yrs

Average Tenure

51yo

Average Age

Experienced Management: NOA's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

62yo

Average Age

Experienced Board: NOA's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: NOA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$14,76002 Oct 19
Martin Ferron
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,000
Max PriceCA$14.76
BuyCA$14,99027 Aug 19
Martin Ferron
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,000
Max PriceCA$14.99
BuyCA$31,30015 Aug 19
Martin Ferron
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,000
Max PriceCA$15.65
BuyCA$72,50006 Jun 19
Bryan D. Pinney Professional Corp.
EntityCompany
Shares5,000
Max PriceCA$14.50
BuyCA$15,40022 May 19
Martin Ferron
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,000
Max PriceCA$15.40
BuyCA$47,24116 May 19
Martin Ferron
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,000
Max PriceCA$15.93
BuyCA$31,29507 May 19
Martin Ferron
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,000
Max PriceCA$15.90
BuyCA$47,14125 Mar 19
Martin Ferron
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares3,000
Max PriceCA$15.77
SellCA$115,90607 Jan 19
Martin Ferron
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares9,384
Max PriceCA$12.35
BuyCA$22,58017 Dec 18
Martin Ferron
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,000
Max PriceCA$11.29
SellCA$1,227,47605 Nov 18
Cannell Capital LLC
EntityCompany
Shares81,917
Max PriceCA$15.04

Ownership Breakdown


Management Team

  • Martin Ferron (62yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: CA$2.79m
  • Joe Lambert (54yo)

    President & COO

    • Tenure: 2yrs
    • Compensation: CA$1.33m
  • Barry Palmer (58yo)

    Senior Vice-President of Operations

    • Tenure: 0.9yrs
    • Compensation: CA$844.29k
  • Jordan Slator (48yo)

    VP, General Counsel & Secretary

    • Tenure: 9.2yrs
  • Jason Veenstra (40yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: CA$674.70k
  • David Brunetta

    Director of Investor Relations and Director of Finance & Information Technology

    • Tenure: 0yrs
  • David Kallay (47yo)

    Vice President of Health

    • Tenure: 0.9yrs

Board Members

  • Martin Ferron (62yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: CA$2.79m
  • Ron McIntosh (77yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: CA$131.00k
  • Tom Stan (61yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: CA$144.50k
  • Jay Thornton (62yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: CA$129.50k
  • John Pollesel (56yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: CA$131.00k
  • Kristina Williams

    Director

    • Tenure: 0.2yrs
  • Bryan Pinney (66yo)

    Lead Director

    • Tenure: 2yrs
    • Compensation: CA$173.50k
  • Maryse Saint-Laurent (59yo)

    Director

    • Tenure: 0.2yrs

Company Information

North American Construction Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: North American Construction Group Ltd.
  • Ticker: NOA
  • Exchange: TSX
  • Founded: 1953
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$364.786m
  • Shares outstanding: 25.60m
  • Website: https://www.nacg.ca

Number of Employees


Location

  • North American Construction Group Ltd.
  • 27287 – 100 Avenue
  • Acheson
  • Alberta
  • T7X 6H8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOATSX (The Toronto Stock Exchange)YesVoting Common SharesCACADNov 2006
NOANYSE (New York Stock Exchange)YesVoting Common SharesUSUSDNov 2006
N5ZDB (Deutsche Boerse AG)YesVoting Common SharesDEEURNov 2006

Biography

North American Construction Group Ltd. provides mining and heavy construction services to resource development and industrial construction sectors in Canada. The company’s Heavy Construction & Mining divis ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:00
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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