Aecon Group, Inc. (ARE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Aecon Group, Inc. ?

Poor Management Efficiency with a low ROE of 6.90%

The company has been able to generate a Return on Equity (avg) of 6.90% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -9.75% of over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 140.12%, its profits have risen by 120.4% ; the PEG ratio of the company is 1.2

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Aecon Group, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Aecon Group, Inc.

132.04%

5.24

44.69%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.05%

EBIT Growth (5y)

-9.75%

EBIT to Interest (avg)

0.26

Debt to EBITDA (avg)

0.89

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

3.40

Tax Ratio

39.62%

Dividend Payout Ratio

316.40%

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

4.11%

ROE (avg)

6.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

148

Industry P/E

Price to Book Value

2.82

EV to EBIT

40.11

EV to EBITDA

16.60

EV to Capital Employed

2.82

EV to Sales

0.54

PEG Ratio

1.24

Dividend Yield

ROCE (Latest)

7.04%

ROE (Latest)

1.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 376.98 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.84 times

PRE-TAX PROFIT(Q)

At CAD 17.19 MM has Grown at 188.51%

NET PROFIT(Q)

At CAD 12.44 MM has Grown at 203.06%

RAW MATERIAL COST(Y)

Fallen by -126.03% (YoY

NET SALES(Q)

Highest at CAD 1,631.01 MM

-3What is not working for the Company

ROCE(HY)

Lowest at -7.09%

EPS(Q)

Lowest at CAD -1.58

Here's what is working for Aecon Group, Inc.

Pre-Tax Profit

At CAD 17.19 MM has Grown at 188.51%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 12.44 MM has Grown at 203.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Debtors Turnover Ratio

Highest at 2.84 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Cash Flow

Highest at CAD 376.98 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 1,631.01 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Raw Material Cost

Fallen by -126.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 30.58 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Aecon Group, Inc.

EPS

Lowest at CAD -1.58

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)