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North American Construction Group

Market Cap

CA$476.6m

Last Updated

2021/05/05 23:56 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Good value with acceptable track record.


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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NOA's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

17.3%

NOA

3.1%

CA Energy Services

0.7%

CA Market


1 Year Return

160.9%

NOA

78.6%

CA Energy Services

37.1%

CA Market

Return vs Industry: NOA exceeded the Canadian Energy Services industry which returned 71.8% over the past year.

Return vs Market: NOA exceeded the Canadian Market which returned 36% over the past year.


Shareholder returns

NOAIndustryMarket
7 Day17.3%3.1%0.7%
30 Day18.9%7.6%1.8%
90 Day45.5%20.0%8.2%
1 Year164.7%160.9%81.0%78.6%41.6%37.1%
3 Year116.4%109.6%-54.6%-58.3%29.9%17.5%
5 Year487.2%450.6%-53.7%-58.9%59.0%35.1%

Long-Term 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?

35.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOA (CA$16.96) is trading below our estimate of fair value (CA$26.12)

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 (9.9x) compared to the XN Energy Services industry average (12x).

PE vs Market: NOA is good value based on its PE Ratio (9.9x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: NOA is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: NOA is overvalued based on its PB Ratio (1.9x) compared to the CA Energy Services industry average (0.7x).


Future Growth

How is North American Construction Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOA's forecast earnings growth (8.6% per year) is above the savings rate (1.5%).

Earnings vs Market: NOA's earnings (8.6% per year) are forecast to grow slower than the Canadian market (19.8% per year).

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

Revenue vs Market: NOA's revenue (7.9% per year) is forecast to grow faster than the Canadian market (7.5% per year).

High Growth Revenue: NOA's revenue (7.9% 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 (18.3%).


Past Performance

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

61.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOA has high quality earnings.

Growing Profit Margin: NOA's current net profit margins (10.5%) are higher than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: NOA has become profitable over the past 5 years, growing earnings by 61.3% per year.

Accelerating Growth: NOA's earnings growth over the past year (1.7%) is below its 5-year average (61.3% per year).

Earnings vs Industry: NOA earnings growth over the past year (1.7%) underperformed the Energy Services industry 11.3%.


Return on Equity

High ROE: NOA's Return on Equity (19.7%) is considered low.


Financial Health

How is North American Construction Group's financial position?


Financial Position Analysis

Short Term Liabilities: NOA's short term assets (CA$133.9M) exceed its short term liabilities (CA$124.3M).

Long Term Liabilities: NOA's short term assets (CA$133.9M) do not cover its long term liabilities (CA$465.4M).


Debt to Equity History and Analysis

Debt Level: NOA's debt to equity ratio (115.4%) is considered high.

Reducing Debt: NOA's debt to equity ratio has increased from 26.6% to 115.4% over the past 5 years.

Debt Coverage: NOA's debt is well covered by operating cash flow (48.2%).

Interest Coverage: NOA's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Dividend

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

0.94%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 06 2021Ex Dividend DateMay 27 2021Dividend Pay DateJul 09 202143 days from Ex DividendBuy in the next 21 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: NOA's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.52%).

High Dividend: NOA's dividend (0.94%) is low compared to the top 25% of dividend payers in the Canadian market (4.66%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.3%), 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?

2.5yrs

Average management tenure


CEO

Joe Lambert (55 yo)

0.33

Tenure

CA$1,170,302

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 ($USD954.80K) is about average for companies of similar size in the Canadian market ($USD753.99K).

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


Leadership Team

Experienced Management: NOA's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: NOA's board of directors are considered experienced (3.5 years average tenure).


Ownership

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

Ownership Breakdown

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


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$476.554m
  • Shares outstanding: 28.10m
  • Website: https://www.nacg.ca

Number of Employees


Location

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

Listings


Biography

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 Co...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/05 23:56
End of Day Share Price2021/05/05 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.