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NOA

North American Construction Group TSX:NOA Stock Report

Last Price

CA$13.18

Market Cap

CA$358.2m

7D

-7.9%

1Y

-28.6%

Updated

23 Sep, 2022

Data

Company Financials +
NOA fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance3/6
Financial Health1/6
Dividends3/6

NOA Stock Overview

North American Construction Group Ltd. provides equipment maintenance, and mining and heavy construction services in Canada, the United States, and Australia.

North American Construction Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for North American Construction Group
Historical stock prices
Current Share PriceCA$13.18
52 Week HighCA$22.00
52 Week LowCA$12.70
Beta1.53
1 Month Change-14.80%
3 Month Change-5.92%
1 Year Change-28.60%
3 Year Change-14.64%
5 Year Change147.28%
Change since IPO-29.10%

Recent News & Updates

Shareholder Returns

NOACA Energy ServicesCA Market
7D-7.9%-9.7%-4.8%
1Y-28.6%2.0%-7.2%

Return vs Industry: NOA underperformed the Canadian Energy Services industry which returned 12.1% over the past year.

Return vs Market: NOA underperformed the Canadian Market which returned -4.6% over the past year.

Price Volatility

Is NOA's price volatile compared to industry and market?
NOA volatility
NOA Average Weekly Movement5.7%
Energy Services Industry Average Movement7.9%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.4%
10% least volatile stocks in CA Market3.7%

Stable Share Price: NOA is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NOA's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1953195Joe Lamberthttps://nacg.ca

North American Construction Group Ltd. provides equipment maintenance, and mining and heavy construction services in Canada, the United States, and Australia. 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 Fundamentals Summary

How do North American Construction Group's earnings and revenue compare to its market cap?
NOA fundamental statistics
Market CapCA$358.17m
Earnings (TTM)CA$50.35m
Revenue (TTM)CA$691.70m

7.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOA income statement (TTM)
RevenueCA$691.70m
Cost of RevenueCA$506.28m
Gross ProfitCA$185.43m
Other ExpensesCA$135.08m
EarningsCA$50.35m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.85
Gross Margin26.81%
Net Profit Margin7.28%
Debt/Equity Ratio110.7%

How did NOA perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

13%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NOA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

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

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NOA?

Other financial metrics that can be useful for relative valuation.

NOA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA4.7x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does NOA's PE Ratio compare to its peers?

NOA PE Ratio vs Peers
The above table shows the PE ratio for NOA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.4x
CMG Computer Modelling Group
21.7x11.5%CA$401.7m
STEP STEP Energy Services
8.8x30.4%CA$330.5m
TVK TerraVest Industries
11.1xn/aCA$423.9m
CEU CES Energy Solutions
8x37.1%CA$545.9m
NOA North American Construction Group
7.1x11.9%CA$358.2m

Price-To-Earnings vs Peers: NOA is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (12.4x).


Price to Earnings Ratio vs Industry

How does NOA's PE Ratio compare vs other companies in the North American Energy Services Industry?

Price-To-Earnings vs Industry: NOA is good value based on its Price-To-Earnings Ratio (7.1x) compared to the North American Energy Services industry average (19.4x)


Price to Earnings Ratio vs Fair Ratio

What is NOA'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.

NOA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.1x
Fair PE Ratio12.2x

Price-To-Earnings vs Fair Ratio: NOA is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).


Share Price vs Fair Value

What is the Fair Price of NOA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NOA (CA$13.18) is trading below our estimate of fair value (CA$39.66)

Significantly Below Fair Value: NOA is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is North American Construction Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOA's forecast earnings growth (11.9% per year) is above the savings rate (1.6%).

Earnings vs Market: NOA's earnings (11.9% per year) are forecast to grow faster than the Canadian market (7.4% per year).

High Growth Earnings: NOA's earnings are forecast to grow, but not significantly.

Revenue vs Market: NOA's revenue (6.9% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: NOA's revenue (6.9% 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 (18%).


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Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NOA has high quality earnings.

Growing Profit Margin: NOA's current net profit margins (7.3%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: NOA's earnings have grown significantly by 36.8% per year over the past 5 years.

Accelerating Growth: NOA's earnings growth over the past year (29.1%) is below its 5-year average (36.8% per year).

Earnings vs Industry: NOA earnings growth over the past year (29.1%) underperformed the Energy Services industry 29.1%.


Return on Equity

High ROE: NOA's Return on Equity (18.1%) is considered low.


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Financial Health

How is North American Construction Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NOA's short term assets (CA$140.7M) do not cover its short term liabilities (CA$141.1M).

Long Term Liabilities: NOA's short term assets (CA$140.7M) do not cover its long term liabilities (CA$450.2M).


Debt to Equity History and Analysis

Debt Level: NOA's net debt to equity ratio (106.5%) is considered high.

Reducing Debt: NOA's debt to equity ratio has increased from 39.8% to 110.7% over the past 5 years.

Debt Coverage: NOA's debt is well covered by operating cash flow (51.1%).

Interest Coverage: NOA's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NOA's dividend (2.43%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: NOA's dividend (2.43%) is low compared to the top 25% of dividend payers in the Canadian market (5.86%).


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 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (13.5%), NOA's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18.3%), NOA's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Joe Lambert (57 yo)

4.92yrs

Tenure

CA$2,336,175

Compensation

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 ($USD1.72M) is above average for companies of similar size in the Canadian market ($USD805.67K).

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


Leadership Team

Experienced Management: NOA's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: NOA's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

TSX:NOA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
06 Jul 22BuyCA$300,341Martin FerronIndividual22,000CA$13.65
23 Jun 22BuyCA$69,950Martin FerronIndividual5,000CA$13.99
02 May 22BuyCA$235,500Martin FerronIndividual15,000CA$15.70
22 Feb 22BuyCA$190,100Martin FerronIndividual10,000CA$19.01
21 Dec 21BuyCA$90,250Martin FerronIndividual5,000CA$18.05
02 Dec 21BuyCA$88,750Martin FerronIndividual5,000CA$17.75
19 Nov 21BuyCA$188,500Martin FerronIndividual10,000CA$18.85
12 Nov 21SellCA$202,700Martin FerronIndividual10,000CA$20.27
01 Nov 21SellCA$340,322Martin FerronIndividual16,175CA$21.04

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 81.64% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.13%
Mawer Investment Management Ltd.
4,383,106CA$57.8m0%0.12%
10.31%
Cannell Capital LLC
2,800,757CA$36.9m8.15%6.23%
8.24%
Martin Ferron
2,240,070CA$29.5m4.34%no data
8.1%
Claret Asset Management Corp
2,200,243CA$29.0m2.26%5.1%
4.54%
BMO Asset Management Corp.
1,233,640CA$16.3m6133.65%0.01%
4.08%
Alberta Investment Management Corporation
1,110,100CA$14.6m0%0.09%
3.84%
Mackenzie Financial Corporation
1,043,278CA$13.8m2.31%0.01%
3.51%
Polar Asset Management Partners Inc.
952,958CA$12.6m19.45%0.18%
3.06%
Fiera Capital Corporation
832,663CA$11.0m0.31%0.01%
2.71%
Renaissance Technologies LLC
735,500CA$9.7m-4.65%0.01%
1.95%
HSBC Global Asset Management (UK) Limited
531,229CA$7.0m0%no data
1.8%
National Bank Investments Inc.
490,390CA$6.5m-1.98%0.02%
1.52%
Cumberland Partners Limited
412,800CA$5.4m13.78%0.37%
1.44%
CIBC Asset Management Inc.
390,282CA$5.1m-35.98%0.01%
1.28%
Canadian Imperial Bank of Commerce, Asset Management Arm
348,748CA$4.6m1.62%0.01%
1.13%
Invenire Capital, LLC
308,270CA$4.1m10.78%4.82%
1.1%
Acuitas Investments, LLC
298,336CA$3.9m6.96%1.64%
1.08%
Prelude Capital Management, LLC
293,882CA$3.9m15.19%0.14%
1.07%
Boothbay Fund Management, LLC
291,610CA$3.8m30.09%0.12%
1.02%
Goldman Sachs Group, Investment Banking and Securities Investments
276,874CA$3.6m44.65%no data
1.01%
Joseph Lambert
274,609CA$3.6m-65.04%no data
0.74%
K J Harrison & Partners Inc.
200,000CA$2.6m-4.58%0.57%
0.69%
Barry Palmer
187,588CA$2.5m4.57%no data
0.67%
Millennium Management LLC
182,257CA$2.4m-21.26%no data
0.61%
Intact Investment Management Inc.
165,867CA$2.2m-23.69%0.06%

Company Information

North American Construction Group Ltd.'s 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
  • Implied Market Cap: CA$358.171m
  • Shares outstanding: 27.18m
  • Website: https://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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/23 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.