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Investor Insights

This summary was created by AI, based on 8 opinions in the last 12 months.

Aecon Group Inc has had a mix of reviews from different experts. While some experts are optimistic about the company's potential for growth due to its partnership with Oaktree and exposure to infrastructure spending, others are concerned about the negative impact of cost overruns on profitability. However, there is consensus among experts that the company has a strong business model and could benefit from infrastructure spending in the long term. Overall, the company seems to be in a better financial position after selling off some assets, and its dividend yield is regarded as safe.

Consensus
Mixed
Valuation
Fair Value
PAST TOP PICK
Aecon Group Inc
(A Top Pick Apr 11/23, Up 8%)

Lots of good things. Oaktree partnership to develop US utilities business. Exposure to nuclear. All the pain will lead to better contracting. Real line of sight to doing well. Infrastructure need and spending will benefit them.

contractors
DON'T BUY
Aecon Group Inc

Plagued with cost overruns, so paying penalties impacts profitability. WSP is her choice in the sector.

contractors
BUY
Aecon Group Inc

Does not own shares. Scores 10/10 fundamentally. Has participated in upside rally since October. Strong business model which will benefit from infrastructure spending. Safe dividend yield around 6%. Good long term stock. Would recommend holding. 

contractors
SELL
Aecon Group Inc

Plagued with cost overruns on fixed-price contracts. She's not tempted. Sell, take the loss, and move elsewhere in the engineering space. She owns WSP, purely engineering design and services, no construction exposure.

contractors
DON'T BUY
Aecon Group Inc

Problems in fixed-price legacy projects, including cost overruns that are dramatically affecting profitability. This type of business inflexibility is not positive.

contractors
PAST TOP PICK
Aecon Group Inc
(A Top Pick Sep 06/22, Up 20%)

Last August, they had some writedowns based on fixed-price contracts in various places. The shares came off. They sold their stake in the Bermuda Airport at a great price, and sold a road-building division. Also good is that they may build a full-scale nuclear reactor in Ontario; they have nuclear expertise. Pays a 6% dividend. A quality company with little risk.

contractors
TOP PICK
Aecon Group Inc

Finally some good news for them--sold 49.9% stake in the Bermuda airport (finally), and they just sold their Ontario road construction business. Are in much stronger financial position. Four legacy contracts at a fixed price will run out end-2023/early-2024. After that will be strong margin expansion. Pays around a 6% dividend and trades at a good PE vs. peers.

(Analysts’ price target is $16.09)
contractors
TOP PICK
Aecon Group Inc

They had fixed-cost contracts with cost overruns and shares fell last year. Turned around this year, though, by selling stake in a Bermuda airport and road-building business. Demand for their work continues to grow. Likes this long-term. Yields 5.6%. Good long-term. Those fixed-cost contracts will recover in time.

(Analysts’ price target is $16.20)
contractors
RISKY
Aecon Group Inc

The engineering and construction sector has really been impacted by cost inflation. Lots of problems with fixed-price contracts, will take time to go through the system, and so the repricing cycle is longer. Be cautious. Layer in, don't weight over 5%. You don't want to be all in if sentiment is going to tick down.

contractors
PAST TOP PICK
Aecon Group Inc

(A Top Pick Feb 01/22, Down 35%)

Still mired in cost overruns that's lasting longer than he expected. That said, roads still need to be built and ARE will benefit. Valuation has been punished. Look at Stantec instead in this space, but he is holding onto ARE. He expects a recovery.

contractors
PAST TOP PICK
Aecon Group Inc
(A Top Pick Jan 26/22, Down 30%)

Cost overruns on projects entered into a decade ago, a much different economic environment. Nuclear expertise. Would benefit from increased mining development. At steal at these levels. Nice total return for 5-10 years. Yield is 7%, shouldn't have to cut.

contractors
DON'T BUY
Aecon Group Inc

Am engineering construction company, so margins are lower than WSP's or Stantec's.  Have suffered cost overruns and project lays, like many in their sector. They have a backlog, but you don't know the quality of if it. Are better opportunities elsewhere. Doesn't like the sector.

contractors
RISKY
Aecon Group Inc
Owns it in the aggressive equity platform. It is at the support level of 2015 but may not bounce back. It is a buy only for risk takers.
contractors
DON'T BUY
Aecon Group Inc
Tough year for the entire space. A lot has to do with fixed-price contracts. Rampant inflation hits profitability. Better opportunities out there. Very well run.
contractors
PAST TOP PICK
Aecon Group Inc
(A Top Pick Feb 01/22, Down 45%) It has had cost over-runs and some legal suits. It is looking for recovery in some projects - two should be completed next year. Since there are inflationary pressures, it will de-emphasize fixed price contracts which make up about 60% of its backlog. It is quite inexpensive since infrastructure spending should increase at some point.
contractors
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Aecon Group Inc(ARE-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 6

Stockchase rating for Aecon Group Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Aecon Group Inc(ARE-T) Frequently Asked Questions

What is Aecon Group Inc stock symbol?

Aecon Group Inc is a Canadian stock, trading under the symbol ARE-T on the Toronto Stock Exchange (ARE-CT). It is usually referred to as TSX:ARE or ARE-T

Is Aecon Group Inc a buy or a sell?

In the last year, 6 stock analysts published opinions about ARE-T. 3 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Aecon Group Inc.

Is Aecon Group Inc a good investment or a top pick?

Aecon Group Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Aecon Group Inc.

Why is Aecon Group Inc 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 Aecon Group Inc worth watching?

6 stock analysts on Stockchase covered Aecon Group Inc In the last year. It is a trending stock that is worth watching.

What is Aecon Group Inc stock price?

On 2024-04-12, Aecon Group Inc (ARE-T) stock closed at a price of $17.19.