ARE Stock Analysis: Aecon | TO
Engineering & Construction | TO, Canada | Market Cap: 3.374m CAD | 12M Return: 87% | CA00762V1094 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 21.6M
Qual. Beats: 0
Rev. Trend: 74.3%
Qual. Beats: 6
Warnings
Tailwinds
Seasonality 11.8 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Aecon Group Inc. is a Canadian construction and infrastructure company serving public- and private-sector clients in Canada, the United States, and other markets. Its Construction segment works across civil, transportation, nuclear, utility, and industrial infrastructure.
Through its Concessions segment, Aecon develops, finances, builds, and operates projects under public-private partnership arrangements, which can combine private financing and construction with ongoing infrastructure operations and maintenance. Founded in 1867, the company is headquartered in Toronto.
- Nuclear and utility infrastructure backlog supports construction revenue growth
- Fixed-price project overruns and labor costs pressure margins
- Higher financing costs delay public-private partnership awards and concessions monetization
| Net Income: -65.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 8.42 > 1.0 |
| NWC/Revenue: 3.77% < 20% (prev 8.47%; Δ -4.70% < -1%) |
| CFO/TA 0.08 > 3% & CFO 369.5m > Net Income -65.3m |
| Net Debt (174.5m) to EBITDA (122.7m): 1.42 < 3 |
| Current Ratio: 1.08 > 1.5 & < 3 |
| Outstanding Shares: last quarter (68.5m) vs 12m ago 8.86% < -2% |
| Gross Margin: 7.99% > 18% (prev 5.08%; Δ 2.90% > 0.5%) |
| Asset Turnover: 151.6% > 50% (prev 142.3%; Δ 9.27% > 0%) |
| Interest Coverage Ratio: 0.24 > 6 (EBIT TTM 11.6m / Interest Expense TTM 48.7m) |
| A: 0.05 (Total Current Assets 3.16b - Total Current Liabilities 2.94b) / Total Assets 4.42b |
| B: 0.06 (Retained Earnings 248.5m / Total Assets 4.42b) |
| C: 0.00 (EBIT TTM 11.6m / Avg Total Assets 3.93b) |
| D: 0.28 (Book Value of Equity 954.6m / Total Liabilities 3.45b) |
| Altman-Z'' = 0.83 = B |
| DSRI: 1.06 (Receivables 2.37b/1.83b, Revenue 5.96b/4.91b) |
| GMI: 0.64 (GM 5.08% / 7.99%) |
| AQI: 0.93 (AQ_t 0.18 / AQ_t-1 0.19) |
| SGI: 1.21 (Revenue 5.96b / 4.91b) |
| TATA: -0.10 (NI -65.3m - CFO 369.5m) / TA 4.42b) |
| Beneish M = -3.20 (Cap -4..+1) = AA |
As of November 04, 2026, the stock is trading at CAD 56.80 with a total of 679,573 shares traded. Over the past week, the price has changed by +12.99%, over one month by -1.66%, over three months by +15.77% and over the past year by +86.98%.
Current recommended Stop Loss: 52.30 (which is 7.9% or 1.6 ATR below the current price).
Aecon has no consensus analysts rating.
P/E Forward = 25.0
P/S = 0.5661
P/B = 3.8379
P/EG = 5.8991
Revenue TTM = 5.96b CAD
EBIT TTM = 11.6m CAD
EBITDA TTM = 122.7m CAD
Long Term Debt = 435.9m CAD (from longTermDebt, last quarter)
Short Term Debt = 368.1m CAD (from shortTermDebt, last quarter)
Debt = 804.0m CAD (from shortLongTermDebtTotal, last quarter)
Net Debt = 174.5m CAD (calculated: Debt 804.0m - CCE 629.6m)
Enterprise Value = 3.55b CAD (3.37b + Debt 804.0m - CCE 629.6m)
Interest Coverage Ratio = 0.24 (Ebit TTM 11.6m / Interest Expense TTM 48.7m)
EV/FCF = 12.50x (Enterprise Value 3.55b / FCF TTM 283.9m)
FCF Yield = 8.00% (FCF TTM 283.9m / Enterprise Value 3.55b)
FCF Margin = 4.76% (FCF TTM 283.9m / Revenue TTM 5.96b)
Net Margin = -1.10% (Net Income TTM -65.3m / Revenue TTM 5.96b)
Gross Margin = 7.99% ((Revenue TTM 5.96b - Cost of Revenue TTM 5.48b) / Revenue TTM)
Gross Margin QoQ = 9.48% (prev 8.00%)
Tobins Q-Ratio = 0.80 (Enterprise Value 3.55b / Total Assets 4.42b)
Interest Expense / Debt = 6.06% (Interest Expense 48.7m / Debt 804.0m)
Taxrate = 37.38% (9.28m / 24.8m)
NOPAT = 7.25m (EBIT 11.6m * (1 - 37.38%))
Current Ratio = 1.08 (Total Current Assets 3.16b / Total Current Liabilities 2.94b)
Debt / Equity = 0.84 (Debt 804.0m / totalStockholderEquity, last quarter 954.6m)
Debt / EBITDA = 1.42 (Net Debt 174.5m / EBITDA 122.7m)
Debt / FCF = 0.61 (Net Debt 174.5m / FCF TTM 283.9m)
Total Stockholder Equity = 965.4m (last 4 quarters mean from totalStockholderEquity)
RoA = -1.66% (Net Income -65.3m / Total Assets 4.42b)
RoE = -6.76% (Net Income TTM -65.3m / Total Stockholder Equity 965.4m)
RoCE = 0.83% (EBIT 11.6m / Capital Employed (Equity 965.4m + L.T.Debt 435.9m))
RoIC = 0.47% (NOPAT 7.25m / Invested Capital 1.55b)
WACC = 8.68% (E(3.37b)/V(4.18b) * Re(9.85%) + D(804.0m)/V(4.18b) * Rd(6.06%) * (1-Tc(0.37)))
Discount Rate = 9.85% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 55.83 | Cagr: 4.35%
[DCF] Terminal Value 74.27% ; FCFF base≈283.9m ; Y1≈285.0m ; Y5≈301.9m
[DCF] Fair Price = 62.29 (EV 4.44b - Net Debt 174.5m = Equity 4.27b / Shares 68.5m; r=8.68% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.58 | # QB: 0
Revenue Correlation: 74.33 | Revenue CAGR: 10.96% | SUE: 1.39 | # QB: 6
EPS current Quarter (2027-03-31): EPS=-0.09 | Chg30d=-12.50% | Revisions=+25% | Analysts=3
EPS current Year (2026-12-31): EPS=1.55 | Chg30d=-0.24% | Revisions=+25% | GrowthEPS=+287.8% | GrowthRev=+18.0%
EPS next Year (2027-12-31): EPS=2.18 | Chg30d=+2.22% | Revisions=+40% | GrowthEPS=+40.7% | GrowthRev=+6.2%
[Analyst] Revisions Ratio: +57% (up=4, down=0)