TSE:NOA
North American Construction Group (NOA-T)
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Apr 16, 2025, 12:00 amThis summary was created by AI, based on 2 opinions in the last 12 months.
North American Construction Group (NOA-T) has garnered mixed reviews from experts in the investment field. One analyst regards it as a cheap play in the construction space, suggesting it holds potential for growth and could be a beneficial addition to a portfolio. However, another analyst, Michael O'Reilly from Stockchase Research, highlights recent challenges faced by the stock, indicating a 15% decline since it was previously identified as a Top Pick. O'Reilly also notes that the stock has triggered its stop-loss at $26, advising investors to cover their positions. Despite this, cumulative previous recommendations yield a net gain of 20%, suggesting that while the stock may be facing short-term setbacks, it has shown profitability in the past.
Premium contentOur PAST TOP PICK with NOA has triggered its stop at $26. To remain disciplined, we recommend covering the position at this time. Combined with our previous recommendations, this will result in a net investment gain of 20%
Premium contentWe again reiterate NOA as a TOP PICK. NOA's First Nations partner just signed a service contract with a major oilsands producer effective immediately. This will be a good use of their heavy equipment and supports an order backlog now projected over $3 billion. It trades at 13x earnings, 2.4x book and supports a 23% ROE. We continue to recommend a stop-loss at $26, looking to achieve $43 -- upside potential of 38%. Yield 1.2%
(Analysts’ price target is $43.83)Premium contentWe once again reiterate NOA, a heavy equipment services company operating in the oil sands sector, as a TOP PICK. It trades at 12x earnings and 2.2x book and supports a 23% ROE. Free cash flow from operations tripled last quarter, according to the latest reported earnings. We recommend keeping a tight stop at $26 at this time, looking to achieve $43 -- upside potential over 50%. Yield 1.3%
(Analysts’ price target is $43.83)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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Premium contentTrading at 11x earnings and 2.3x book, we again reiterate NOA as a TOP PICK. The company recently announced a $395 million acquisition in Australia that will expand their presence there further. We recommend trailing up the stop (from $25) to $26 at this time, looking to achieve $40 -- upside potential over 35%. Yield 1.2%
(Analysts’ price target is $40.40)Premium contentNOA is reiterated as a TOP PICK following its recent announcement to acquire an Australian heavy equipment services company. This will greatly expand their market reach. It currently trades at 13x earnings and supports a 26% ROE. Cash reserves are growing, while debt is retired and shares bought back. We recommend trailing up the stop (from $23) to $25, looking to achieve $40 -- upside potential of 19%. Yield 1.0%
(Analysts’ price target is $40.40)Premium contentThe 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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Premium contentWe reiterate NOA, one of Canada's largest heavy construction and mining contractors as a TOP PICK. The company recently reported record revenue on wholly-owned business, as oil sands activity improved and operating margins widened. We like that cash reserves are growing, while debt is retired and shares bought back. It trades at 10x earnings and 2x book, while supporting a 24% ROE. We continue to recommend a stop-loss at $23, looking to achieve $30 -- upside potential of 18%. Yield 1.3%
(Analysts’ price target is $30.17)Premium contentPremium contentPremium contentWe again reiterate NOA as a TOP PICK. Management reports the company is experiencing "less skilled trade vacancies and improved equipment utilization" as it emerges from the effects of the pandemic. It trades under 2x book value and supports a 20% ROE. The dividend is backed by a payout ratio under 20% of cash flow. We like that cash reserves have been growing, while debt is aggressively retired and shares are bought back. We recommend trailing up the stop (from $14) to $16, looking to achieve $24 -- upside potential of 16%. Yield %
(Analysts’ price target is $23.79)Premium content
North American Construction Group(NOA-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 2
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 2
North American Construction Group(NOA-T) Frequently Asked Questions
What is North American Construction Group stock symbol?
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
Is North American Construction Group a buy or a sell?
In the last year, 2 stock analysts published opinions about NOA-T. 2 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.
Is North American Construction Group a good investment or a top pick?
North American Construction Group was recommended as a Top Pick by on . Read the latest stock experts ratings for North American Construction Group.
Why is North American Construction Group stock dropping?
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.
Is North American Construction Group worth watching?
2 stock analysts on Stockchase covered North American Construction Group In the last year. It is a trending stock that is worth watching.
What is North American Construction Group stock price?
On 2025-07-15, North American Construction Group (NOA-T) stock closed at a price of $20.88.
A cheap play in the space. See his Top Picks.