This summary was created by AI, based on 4 opinions in the last 12 months.
North American Construction Group (NOA) is a heavy equipment services company operating in the oil sands sector. It has shown strong fundamentals including impressive sales and earnings growth, expanding profit margins, and strong forward sales and earnings estimates. The stock has been performing well with a one-year total return of 60% and pays a small dividend of 1.5%. The company's First Nations partner just signed a service contract with a major oilsands producer, supporting an order backlog now projected over $3 billion. While there are some small-cap risks, the experts feel that NOA looks fairly attractive at its current valuation.
Insiders own about 9% of NOA. On a one-year basis, its total return is 60%, it pays a small dividend of 1.5%, its five-year sales and earnings CAGR are impressive at 19% and 37%. Forward sales and earnings estimates are strong, and profit margins have been expanding nicely over the past several years. It is a smaller name ($740M market cap), and its free cash flow yield is around 5%. It trades at a cheap valuation of 6.4X forward earnings and 0.6X forward sales. It has some small-cap risks, but its fundamentals and share price performance have been strong. We feel that NOA looks fairly attractive here, although we would be mindful of position sizing and small-cap risks.
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The stock was also up on very strong earnings, with EPS more than 14% ahead of estimates and sales more than 8% ahead. For a $900M company, the $395M acquisition is very significant. NOA entered Australia two years ago, and this deal instantly gives it scale and market share, and allows it to serve its global customers better. It also further diversifies its overall business. It adds about 1,400 employees and a $4B backlog. It is highly accretive to sales and earnings. Debt-financed, there is risk, but the earnings boost is substantial. We think it is a solid deal, and the stock remains cheap overall despite the gains last week.
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Diversified beyond heavy oil, now more of a full engineering company for the resource industry. Stock's acting better. He hasn't added recently. Not as screamingly cheap as it was. Increased costs are squeezing margins.
North American Construction Group is a Canadian stock, trading under the symbol NOA-T on the Toronto Stock Exchange (NOA-CT). It is usually referred to as TSX:NOA or NOA-T
In the last year, 3 stock analysts published opinions about NOA-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for North American Construction Group.
North American Construction Group was recommended as a Top Pick by on . Read the latest stock experts ratings for North American Construction Group.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered North American Construction Group In the last year. It is a trending stock that is worth watching.
On 2024-12-02, North American Construction Group (NOA-T) stock closed at a price of $28.5.
A cheap play in the space. See his Top Picks.