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Investor Insights

This summary was created by AI, based on 11 opinions in the last 12 months.

Aecon Group Inc (ARE-T) is a construction and infrastructure development company that has seen a recent improvement in its business performance. Despite past challenges with fixed-price contracts and cost overruns, the company has managed to right-size its operations, focus on increasing margins, and secure a strong backlog of projects. With a growing nuclear power segment and potential for revenue and earnings growth in the coming years, analysts see potential for the stock to recover and consider it a good long-term investment.

Consensus
Potential
Valuation
Undervalued
SELL
Aecon Group Inc

Good move recently. Benefiting from capital infrastructure spends in Ontario, and this will continue to increase. Nothing wrong with the name, but there are cheaper plays like ATRL and NOA. See his Top Picks.

contractors
BUY
Aecon Group Inc

It's gotten past a lot of its old, fixed-price contracts that really hurt the company for a number of years. ROE is ~9%, at a much lower price-to-book ratio than others. Getting a lot of contracts lately. Prefers this in the space, despite its small $2B market cap.

contractors
BUY
Aecon Group Inc

Has more room to run. It trades at a discount to peers. Its backlog has never grown better. They have a nuclear side to their business at Bruce Power. A lot going on and he likes it.

contractors
BUY
Aecon Group Inc

This got away from him. He held back because these are long-lead projects and there could be labour and permit issues and delays, and their business depends on contracts, jumping from one to another, instead of a reliable stream. That said, they have a ton of projects on the books and have grown into an infrastructure giant.

contractors
BUY ON WEAKNESS
Aecon Group Inc
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

ARE provides construction and infrastructure development services to private and public sector. Nuclear power certainly does seem like it is a growing part of the business, now at 19% of construction revenues over the last twelve months. Recent second quarter financials were not good, however, the stock jumped as ARE announced a 5% buyback and numerous analysts upgraded their ratings on the expectations that the "worst is likely behind." ARE does have a large backlog at $6.19 billion, and its balance sheet is net cash positive. It is still quite cheap at 15x forward earnings despite being up 89% over the last year and paying a 3.7% yield. If revenue and earnings growth begin to recover in the second half of 2024, the stock could be interesting at this valuation and yield. 
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contractors
TOP PICK
Aecon Group Inc

Global infrastructure building. Past projects haven't necessarily had the best margins. Right-sized all of that. Going to focus on increasing margins. Growing organically and by acquisition. Dividend has about an 8% annual compound growth rate over the last 10 years. Yield is 3.7%.

Trading at half the multiple than historically. Huge backlog with infrastructure projects, so it will continue to grow by picking up projects and by making acquisitions.

(Analysts’ price target is $21.00)
contractors
HOLD
Aecon Group Inc

November-March: fantastic. Leveled off in recent weeks, as has the sector. Now consolidating, normal. Engineering stocks have picked up recently, but hasn't yet carried through to this name.

contractors
PAST TOP PICK
Aecon Group Inc
(A Top Pick Apr 11/23, Up 33%)

Excellent business that will continue to hold. Recent cost over runs not a major concern. Backlog is full with new projects. Have sold off low margin business units. Stock continues to perform. Recent Nuclear contracts being signed. 

contractors
DON'T BUY
Aecon Group Inc

Engineering and construction are core businesses, and the construction part is what stops him. Contracts are at the mercy of cost overruns. He owns WSP instead, pure-play consulting and engineering.

contractors
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
Showing 1 to 15 of 426 entries

Aecon Group Inc(ARE-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 7

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 11

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, 11 stock analysts published opinions about ARE-T. 7 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?

11 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 2024-12-06, Aecon Group Inc (ARE-T) stock closed at a price of $28.04.