North American Construction Group Ltd. provides mining and heavy construction services to the resource development and industrial construction sectors in Canada and the United States The company’s Heavy Construction & Mining division offers constructability reviews, budgetary cost estimates, design-build construction, project management, contract mining, pre-stripping/pit pioneering, overburden removal and stockpile, muskeg removal and stockpile, site preparation, air strip construction, site dewatering/perimeter ditching, tailings and process pipelines, haulage and access road construction, tailings dam construction and densification, mechanically stabilized earth walls, dyke construction, and reclamation services.
North American Construction Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||CA$18.80|
|52 Week High||CA$7.99|
|52 Week Low||CA$21.30|
|1 Month Change||11.44%|
|3 Month Change||-5.15%|
|1 Year Change||100.64%|
|3 Year Change||59.59%|
|5 Year Change||464.57%|
|Change since IPO||1.13%|
Recent News & Updates
North American Construction Group (TSE:NOA) Is Due To Pay A Dividend Of CA$0.04
The board of North American Construction Group Ltd. ( TSE:NOA ) has announced that it will pay a dividend of CA$0.04...
Here's Why North American Construction Group (TSE:NOA) Is Weighed Down By Its Debt Load
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
|NOA||CA Energy Services||CA Market|
Return vs Industry: NOA exceeded the Canadian Energy Services industry which returned 79.4% over the past year.
Return vs Market: NOA exceeded the Canadian Market which returned 28.9% over the past year.
Stable Share Price: NOA is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: NOA's weekly volatility (5%) has been stable over the past year.
About the Company
North American Construction Group Ltd. provides mining and heavy construction services to the resource development and industrial construction sectors in Canada and the United States The company’s Heavy Construction & Mining division offers constructability reviews, budgetary cost estimates, design-build construction, project management, contract mining, pre-stripping/pit pioneering, overburden removal and stockpile, muskeg removal and stockpile, site preparation, air strip construction, site dewatering/perimeter ditching, tailings and process pipelines, haulage and access road construction, tailings dam construction and densification, mechanically stabilized earth walls, dyke construction, and reclamation services. Its Equipment Maintenance Services division provides fuel and lube servicing, portable steaming, equipment inspections, parts and component supply, major overhauls and equipment refurbishment, onsite haul truck brake testing, onsite maintenance support, under carriage rebuild, machining, hose manufacturing, and technical support services, as well as welding, fabrication/repairs, weld certification, and inspection services.
Is North American Construction Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NOA (CA$18.8) is trading below our estimate of fair value (CA$25.61)
Significantly Below Fair Value: NOA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NOA is poor value based on its PE Ratio (13.7x) compared to the Canadian Energy Services industry average (12.7x).
PE vs Market: NOA is poor value based on its PE Ratio (13.7x) compared to the Canadian market (12.8x).
Price to Earnings Growth Ratio
PEG Ratio: NOA is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: NOA is overvalued based on its PB Ratio (2.1x) compared to the CA Energy Services industry average (0.7x).
How is North American Construction Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOA's forecast earnings growth (17.5% per year) is above the savings rate (1.5%).
Earnings vs Market: NOA's earnings (17.5% per year) are forecast to grow faster than the Canadian market (12.3% per year).
High Growth Earnings: NOA's earnings are forecast to grow, but not significantly.
Revenue vs Market: NOA's revenue (8.8% per year) is forecast to grow faster than the Canadian market (6.2% per year).
High Growth Revenue: NOA's revenue (8.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NOA's Return on Equity is forecast to be low in 3 years time (19%).
How has North American Construction Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NOA has high quality earnings.
Growing Profit Margin: NOA's current net profit margins (7.2%) are lower than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: NOA has become profitable over the past 5 years, growing earnings by 55.6% per year.
Accelerating Growth: NOA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NOA had negative earnings growth (-19%) over the past year, making it difficult to compare to the Energy Services industry average (-19%).
Return on Equity
High ROE: NOA's Return on Equity (15.3%) is considered low.
How is North American Construction Group's financial position?
Financial Position Analysis
Short Term Liabilities: NOA's short term assets (CA$107.6M) do not cover its short term liabilities (CA$109.1M).
Long Term Liabilities: NOA's short term assets (CA$107.6M) do not cover its long term liabilities (CA$453.7M).
Debt to Equity History and Analysis
Debt Level: NOA's debt to equity ratio (112.4%) is considered high.
Reducing Debt: NOA's debt to equity ratio has increased from 25% to 112.4% over the past 5 years.
Debt Coverage: NOA's debt is well covered by operating cash flow (46.2%).
Interest Coverage: NOA's interest payments on its debt are not well covered by EBIT (2.5x coverage).
What is North American Construction Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NOA's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.64%).
High Dividend: NOA's dividend (0.85%) is low compared to the top 25% of dividend payers in the Canadian market (4.51%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, NOA has been paying a dividend for less than 10 years.
Growing Dividend: NOA's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (11.8%), NOA's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NOA's dividends in 3 years are forecast to be thoroughly covered by earnings (6.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joe Lambert (56 yo)
Mr. Joseph C. Lambert, also known as Joe, has been Chief Executive Officer and Director of North American Construction Group Ltd. since January 1, 2021 and as its President since October 31, 2017. He serve...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD917.97K) is about average for companies of similar size in the Canadian market ($USD873.80K).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Experienced Management: NOA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: NOA's board of directors are considered experienced (3.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NOA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
North American Construction Group Ltd.'s employee growth, exchange listings and data sources
- Name: North American Construction Group Ltd.
- Ticker: NOA
- Exchange: TSX
- Founded: 1953
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: CA$534.267m
- Shares outstanding: 28.42m
- Website: https://www.nacg.ca
Number of Employees
- North American Construction Group Ltd.
- 27287 – 100 Avenue
- T7X 6H8
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/19 22:08|
|End of Day Share Price||2021/09/17 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.