TSX:NOA

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North American Construction Group

Executive Summary

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


Snowflake Analysis

Solid track record and good value.


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

Stable Share Price: NOA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.8%

NOA

4.8%

CA Energy Services

1.9%

CA Market


1 Year Return

-41.2%

NOA

-64.3%

CA Energy Services

-12.0%

CA Market

Return vs Industry: NOA exceeded the Canadian Energy Services industry which returned -66.8% over the past year.

Return vs Market: NOA underperformed the Canadian Market which returned -14.5% over the past year.


Shareholder returns

NOAIndustryMarket
7 Day7.8%4.8%1.9%
30 Day31.4%15.0%3.5%
90 Day-29.0%-44.6%-10.5%
1 Year-40.4%-41.2%-62.3%-64.3%-8.9%-12.0%
3 Year49.8%45.0%-74.1%-76.5%-0.1%-9.4%
5 Year195.1%171.7%-79.0%-81.9%14.7%-2.4%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOA (CA$8.88) is trading below our estimate of fair value (CA$20.57)

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


Price To Earnings Ratio

PE vs Industry: NOA is good value based on its PE Ratio (4.7x) compared to the Energy Services industry average (7.5x).

PE vs Market: NOA is good value based on its PE Ratio (4.7x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: NOA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NOA is overvalued based on its PB Ratio (1.2x) compared to the CA Energy Services industry average (0.3x).


Next Steps

Future Growth

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

-9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOA's earnings are forecast to decline over the next 3 years (-9% per year).

Earnings vs Market: NOA's earnings are forecast to decline over the next 3 years (-9% per year).

High Growth Earnings: NOA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NOA's revenue (4.3% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: NOA's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

76.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOA has high quality earnings.

Growing Profit Margin: NOA's current net profit margins (6.7%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: NOA has become profitable over the past 5 years, growing earnings by 76.4% per year.

Accelerating Growth: NOA's earnings growth over the past year (324.2%) exceeds its 5-year average (76.4% per year).

Earnings vs Industry: NOA earnings growth over the past year (324.2%) exceeded the Energy Services industry 4.4%.


Return on Equity

High ROE: Whilst NOA's Return on Equity (26.05%) is high, this metric is skewed due to their high level of debt.


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$130.1M) do not cover its short term liabilities (CA$133.4M).

Long Term Liabilities: NOA's short term assets (CA$130.1M) do not cover its long term liabilities (CA$515.6M).


Debt to Equity History and Analysis

Debt Level: NOA's debt to equity ratio (203.2%) is considered high.

Reducing Debt: NOA's debt to equity ratio has increased from 31.8% to 203.2% over the past 5 years.

Debt Coverage: NOA's debt is well covered by operating cash flow (41.8%).

Interest Coverage: NOA's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NOA's dividend (1.8%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.07%).

High Dividend: NOA's dividend (1.8%) is low compared to the top 25% of dividend payers in the Canadian market (6.65%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.3%), NOA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Martin Ferron (62yo)

7.92yrs

Tenure

CA$2,066,117

Compensation

Mr. Martin R. Ferron serves as Chairman of the Board at North American Construction Group Inc. He has been the Chief Executive Officer of North American Construction Group Ltd. (formally known as North Ame ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD1.48M) is above average for companies of similar size in the Canadian market ($USD730.29K).

Compensation vs Earnings: Martin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Martin Ferron
Chairman & CEO7.92yrsCA$2.07m7.12% CA$18.2m
Joseph Lambert
President & COO2.58yrsCA$1.07m0.65% CA$1.7m
Jason Veenstra
Executive VP & CFO1.67yrsCA$799.67kno data
Jordan Slator
VP, General Counsel & Corporate Secretary9.75yrsCA$444.18k0.26% CA$665.0k
Barry Palmer
Senior Vice-President of Operations1.5yrsCA$686.31k0.45% CA$1.2m
David Brunetta
Director of Investor Relations and Director of Finance & Information Technologyno datano datano data
David Kallay
Vice President of Health1.5yrsno data0.079% CA$201.7k

2.1yrs

Average Tenure

50.5yo

Average Age

Experienced Management: NOA's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Ferron
Chairman & CEO7.92yrsCA$2.07m7.12% CA$18.2m
Ronald McIntosh
Independent Director16yrsCA$132.50k0.42% CA$1.1m
Thomas Stan
Independent Director3.83yrsCA$149.00kno data
John Pollesel
Independent Director2.5yrsCA$136.25kno data
Kristina Williams
Independent Director0.75yrCA$45.44kno data
Bryan Pinney
Lead Director2.58yrsCA$179.50k0.11% CA$269.3k
Maryse Saint-Laurent
Independent Director0.75yrCA$45.44kno data

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: NOA's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.4%.


Top Shareholders

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$256.341m
  • Shares outstanding: 29.03m
  • 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 the resource development and industrial construction sectors in Canada. 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. As of December 31, 2019, the company had a heavy equipment fleet of 686 units. The company was formerly known as North American Energy Partners Inc. and changed its name to North American Construction Group Ltd. in April 2018. The company was founded in 1953 and is headquartered in Acheson, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 05:01
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.