North American Construction Group Ltd.
North American Construction Group Ltd. Fundamental Analysis
North American Construction Group Ltd. (NOA) shows moderate financial fundamentals with a PE ratio of 14.77, profit margin of 2.63%, and ROE of 7.88%. The company generates $1.3B in annual revenue with strong year-over-year growth of 21.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NOA's fundamental strength across five key dimensions:
Efficiency Score
WeakNOA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNOA trades at attractive valuation levels.
Growth Score
ModerateNOA shows steady but slowing expansion.
Financial Health Score
WeakNOA carries high financial risk with limited liquidity.
Profitability Score
WeakNOA struggles to sustain strong margins.
Key Financial Metrics
Is NOA Expensive or Cheap?
P/E Ratio
NOA trades at 14.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NOA's PEG of -0.70 indicates potential undervaluation.
Price to Book
The market values North American Construction Group Ltd. at 1.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.93 times EBITDA. This is generally considered low.
How Well Does NOA Make Money?
Net Profit Margin
For every $100 in sales, North American Construction Group Ltd. keeps $2.63 as profit after all expenses.
Operating Margin
Core operations generate 8.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.88 in profit for every $100 of shareholder equity.
ROA
North American Construction Group Ltd. generates $1.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
North American Construction Group Ltd. produces operating cash flow of $269.16M, showing steady but balanced cash generation.
Free Cash Flow
North American Construction Group Ltd. generates weak or negative free cash flow of $-22.31M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.77 in free cash annually.
FCF Yield
NOA converts -4.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How NOA Stacks Against Its Sector Peers
| Metric | NOA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.77 | 19.95 | Better (Cheaper) |
| ROE | 7.88% | 963.00% | Weak |
| Net Margin | 2.63% | -48347.00% (disorted) | Weak |
| Debt/Equity | 2.02 | -0.54 (disorted) | Distorted |
| Current Ratio | 0.88 | 4.82 | Weak Liquidity |
| ROA | 1.86% | -2296.00% (disorted) | Weak |
NOA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews North American Construction Group Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
98.51%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
46.37%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
68.70%
Industry Style: Cyclical, Value, Commodity
High Growth