# Aecon Group Inc. (ARE.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Construction & Engineering. Price C$45.06, market value C$3.1 billion.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Aecon Group Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **PEG: 0.17**. A PEG of 0.17 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.5×**. Each dollar of revenue is priced at 0.5×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 3.2×**. The shares trade at 3.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 26.1×**. Enterprise value is 26.1× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 9.1%** (5-yr avg -5.6%). Free cash flow equals 9.1% of the market value, above its five-year average of -5.6%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Gross margin: 8.0%**. Aecon Group Inc. keeps 8.0% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 1.9%**. 1.9% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 0.3%**. 0.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 1.6%**. 1.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 10.8%**. Return on all capital, debt included, is 10.8%.
- **Return on assets: -1.6%**. Each dollar of assets produces -1.6% of profit.

## Growth
- **Revenue growth (1 yr): 28.1%** (3-yr 5.0%/yr, 5-yr 8.3%/yr). Revenue grew 28.1% over the last year, against 8.3% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 124.2%** (3-yr -21.2%/yr, 5-yr -29.2%/yr). Earnings per share rose 124.2%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 0.65**. Debt is 0.65 times equity, moderate leverage.
- **Net debt / EBITDA: 0.9×**. It would take 0.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 2.3×**. Operating profit covers interest 2.3×, thin but manageable.
- **Current ratio: 1.10** (quick 1.09). Current assets cover the next year's liabilities 1.10 times.
- **Altman Z-score: 2.40**. A Z-score of 2.40 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.71%** (C$0.77 per share, trailing). Aecon Group Inc. yields 1.71%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 316%**. The dividend exceeds earnings (316% payout), which is rarely sustainable outside REITs and one-off years.
- **Consecutive years of increases: 11**. 11 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 3.5%/yr** (1-yr 0.0%). The dividend has grown 3.5% a year over five years.
- **Shareholder yield: -3.6%**. Dividends plus net buybacks return -3.6% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (10 analysts). 10 analysts cover Aecon Group Inc.; the consensus is buy, with an average price target of C$57.00 (+26% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 120.3%** (YTD 45.3%, 3-mo -0.4%). The shares are up 120.3% over twelve months including dividends.
- **From 52-week high: -21.9%** (119.0% above the low). Trading 22% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 0.95** (volatility 45%). Beta of 0.95 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ARE.TO · Page: https://foliofundamentals.com/stocks/are.to

Not investment advice.