Aecon Group (TSE:ARE) Reaches New 12-Month High - What's Next?

Key Points

• Share price strength: Aecon hit a new 52-week high at C$44.35 (last C$44.33) and was trading up about 3.1% on the session, while several analysts raised price targets (TD to C$47, Canaccord to C$52) though the consensus rating remains an average "Hold" with a C$39.38 target.
• Recent quarter showed C$0.52 EPS on C$1.54 billion revenue, but the stock trades at a high P/E of 190.26 and the company reported very slim profitability (net margin 0.28%, ROE 1.66%), suggesting valuations reflect growth expectations rather than current earnings strength.
• Management declared a quarterly dividend of C$0.1925 (C$0.77 annualized, ~1.8% yield), but the dividend payout ratio is an unusually high 330%, which may be unsustainable without improved earnings or cash flow.

Aecon Group Inc. (TSE:ARE - Get Free Report) hit a new 52-week high on Wednesday . The company traded as high as C$44.35 and last traded at C$44.33, with a volume of 116129 shares trading hands. The stock had previously closed at C$42.46.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the stock. ATB Cormark Capital Markets raised their target price on shares of Aecon Group from C$35.00 to C$39.00 and gave the stock a "sector perform" rating in a research report on Monday, March 9th. TD Securities upped their price target on shares of Aecon Group from C$39.00 to C$47.00 and gave the company a "buy" rating in a research report on Monday, March 9th. Raymond James Financial increased their price target on shares of Aecon Group from C$33.00 to C$41.00 and gave the stock a "market perform" rating in a research note on Tuesday, March 10th. Royal Bank Of Canada raised their price objective on shares of Aecon Group from C$30.00 to C$41.00 and gave the stock a "sector perform" rating in a research report on Tuesday, March 10th. Finally, Canaccord Genuity Group lifted their price objective on shares of Aecon Group from C$40.00 to C$52.00 and gave the company a "buy" rating in a research note on Monday, March 9th. Three research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of C$39.38.

Aecon Group Trading Up 3.1%

The firm has a market capitalization of C$2.80 billion, a price-to-earnings ratio of 190.26, a price-to-earnings-growth ratio of 18.18 and a beta of 1.10. The business's 50 day moving average price is C$37.49 and its 200-day moving average price is C$31.04. The company has a debt-to-equity ratio of 65.17, a current ratio of 1.10 and a quick ratio of 1.27.

Aecon Group (TSE:ARE - Get Free Report) last announced its quarterly earnings data on Thursday, March 5th. The company reported C$0.52 EPS for the quarter. Aecon Group had a net margin of 0.28% and a return on equity of 1.66%. The firm had revenue of C$1.54 billion during the quarter. Equities analysts forecast that Aecon Group Inc. will post 1.3793321 EPS for the current fiscal year.

Aecon Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, April 2nd will be issued a $0.1925 dividend. This represents a $0.77 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Monday, March 23rd. Aecon Group's dividend payout ratio (DPR) is currently 330.43%.

Aecon Group Company Profile

Aecon Group Inc is a Canada-based company that operates in two segments: Construction and Concessions. The Construction segment includes various aspects of the construction of public and private infrastructure projects, mainly in the transportation sector. Its concessions segment is engaged in the development, financing, construction, and operation of infrastructure projects. Aecon generates the majority of its revenue from the Construction segment.

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