North American Construction Group (NOA) AI Stock Analysis

• Market Cap: $557.05M
• Dividend Yield: 2.55%
• Average Volume (3M): 144.85K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.15
• Revenue Growth: 14.58%
• EPS Growth: -37.71%
• Country: CA
• Employees: 1,825
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.33
• Shares Outstanding: 29,303,010
• 10 Day Avg. Volume: 83,901
• 30 Day Avg. Volume: 144,849
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.72
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 7.78
• Enterprise Value/Ebitda: 5.07
• 1Y Price Target: $25.19
• Price Target Upside: 31.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 61 Neutral
• Price Target: C$18.00 ▼(-6.05% Downside)

The overall stock score of 61 reflects a combination of solid financial performance and reasonable valuation, tempered by technical indicators suggesting bearish momentum. The earnings call highlighted both growth opportunities and operational challenges, contributing to a cautious outlook.

Positive Factors

Negative Factors

North American Construction Group Business Overview & Revenue Model

Company Description

North American Construction Group Ltd. provides equipment maintenance, and mining and heavy construction services in Canada, the United States, and Australia. The company's Heavy Construction & Mining division offers constructability reviews, budgetary cost estimates, design-build construction, project management, contract mining, pre-stripping/pit pioneering, overburden removal and stockpile, muskeg removal and stockpile, site preparation, air strip construction, site dewatering/perimeter ditching, tailings and process pipelines, haulage and access road construction, tailings dam construction and densification, mechanically stabilized earth walls, dyke construction, and reclamation services. Its Equipment Maintenance Services division provides fuel and lube servicing, portable steaming, equipment inspections, parts and component supply, major overhauls and equipment refurbishment, onsite haul truck brake testing, onsite maintenance support, under carriage rebuild, machining, hose manufacturing, and technical support services, as well as welding, fabrication/repairs, weld certification, and inspection services. As of December 31, 2021, the company operated a heavy equipment fleet of 632 units. It serves resource development and industrial construction sectors. The company was formerly known as North American Energy Partners Inc. and changed its name to North American Construction Group Ltd. in April 2018. North American Construction Group Ltd. was founded in 1953 and is headquartered in Acheson, Canada.

How the Company Makes Money

North American Construction Group generates revenue primarily through contracts awarded for large-scale construction projects in the oil sands and other industrial sectors. The company's revenue model is based on a combination of fixed-price, cost-plus, and unit price contracts, which allows it to earn income from both direct labor and equipment rental. Key revenue streams include project execution, maintenance services, and equipment leasing. NOA also benefits from significant partnerships with major oil and gas companies, enabling it to secure long-term contracts and work on high-value projects. Additionally, the company's expertise in safety and efficiency enhances its competitive edge, contributing to repeat business and client loyalty.

North American Construction Group Financial Statement Overview

Summary

North American Construction Group shows robust revenue growth and operational efficiency, with strong EBIT and EBITDA margins. However, challenges exist in net profit margin and free cash flow generation, compounded by high leverage on the balance sheet, which may limit financial flexibility.

Income Statement

North American Construction Group's income statement shows robust growth, with a significant increase in total revenue over recent years. The gross profit margin for TTM is approximately 16.09%, reflecting solid cost management. The net profit margin, however, is relatively low at 3.21% for TTM, indicating pressure on bottom-line profitability. The EBIT margin is strong at 12.04% for TTM, and EBITDA margin is commendable at 24.69%, highlighting efficient operations and strong earnings before non-cash charges. Revenue growth from 2023 to TTM is notable at 26.37%, showcasing a positive growth trajectory.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.79 for TTM, indicating significant leverage, which could pose risks if earnings fluctuate. The equity ratio stands at 25.74% for TTM, suggesting a reasonable level of equity financing. Return on equity (ROE) is relatively low at 8.42% for TTM, reflecting modest returns on shareholder investments. While the company maintains a stable asset base, the high leverage could impact financial flexibility.

Cash Flow

Cash flow analysis shows that the company has a negative free cash flow for TTM, primarily due to substantial capital expenditures. The operating cash flow to net income ratio is strong at 6.61 for TTM, indicating good cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting challenges in converting net income into free cash flow. Although operating cash flow is robust, the negative free cash flow due to high investment spending is a concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	957.22M	769.54M	654.14M	500.37M
Gross Profit	210.05M	154.22M	101.55M	90.42M	94.38M
EBITDA	283.06M	228.69M	191.06M	149.81M	160.35M
Net Income	44.09M	63.14M	67.37M	51.41M	49.21M
Balance Sheet
Total Assets	1.69B	1.55B	979.51M	869.28M	838.93M
Cash, Cash Equivalents and Short-Term Investments	77.88M	88.61M	69.14M	16.60M	43.91M
Total Debt	825.10M	717.05M	435.39M	395.23M	446.18M
Total Liabilities	1.31B	1.19B	673.59M	590.82M	590.49M
Stockholders Equity	388.90M	356.65M	305.92M	278.46M	248.44M
Cash Flow
Free Cash Flow	-66.74M	66.90M	53.94M	51.39M	29.70M
Operating Cash Flow	217.61M	270.39M	169.20M	165.18M	147.27M
Investing Cash Flow	-274.68M	-244.88M	-97.47M	-99.27M	-113.57M
Financing Cash Flow	45.98M	-7.75M	-19.49M	-92.76M	4.67M

North American Construction Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NOA, the sentiment is Neutral. The current price of 19.16 is above the 20-day moving average (MA) of 18.77, below the 50-day MA of 19.61, and below the 200-day MA of 23.43, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 48.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:NOA.

North American Construction Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCW	79 Outperform	1.24B	10.69	21.71%	3.32%	-2.14%	-6.88%
PSI	76 Outperform	933.38M	12.87	15.22%	4.32%	9.33%	-36.51%
EFX	74 Outperform	1.85B	10.44	11.45%	0.98%	-0.41%	―
NOA	61 Neutral	$557.05M	14.99	8.24%	2.55%	14.58%	-37.71%
CFW	52 Neutral	286.87M	29.18	1.50%	―	-4.63%	-92.13%
SFD	42 Neutral	65.38M	-9.30	3456.13%	―	415.42%	55.41%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

North American Construction Group Corporate Events

North American Construction Group to Announce Q2 2025 Financial Results

North American Construction Group Ltd. announced it will release its financial results for the second quarter of 2025 on August 13, with a subsequent conference call and webcast scheduled for August 14. This announcement is part of the company’s ongoing efforts to maintain transparency with stakeholders and provide insights into its financial performance, which could impact its market positioning and stakeholder confidence.

The most recent analyst rating on (TSE:NOA) stock is a Buy with a C$44.00 price target. To see the full list of analyst forecasts on North American Construction Group stock, see the TSE:NOA Stock Forecast page.