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North American Construction Group Ltd. is a leading provider of heavy construction and mining services in Canada. Specializing in earthmoving, mine site development, and reclamation, the company serves industries such as oil sands, metals, and infrastructure projects. Established in 1953 and headquartered in Alberta, it has built a strong reputation for its comprehensive capabilities in both general contracting and operational support, ensuring efficient project execution. The firm's extensive equipment fleet and skilled workforce enable it to deliver large-scale infrastructure solutions and maintain operational excellence. North American Construction Group Ltd.'s role in the market is vital, particularly in resource-rich regions where its expertise in managing complex geological and environmental challenges is highly valued. By driving and supporting infrastructure growth, it plays a critical role in the development of Canada’s natural resource sector.
$13.24
$0.02 (-0.15%)
Live · 08:35 PM
Operating margin is thin at 8.57%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 10.2%, still solid. Margins contracted 4.7pp, which offsets some of the top-line progress.
ROIC dropped from 9.89% to 5.06%, capital efficiency is deteriorating. Negative free cash flow of -C$21M. The business is consuming cash, not generating it.
17.1x earnings, 319.6x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
C$1.26B
▲ +10.2% YoY
Net Income (TTM)
C$33M
▼ -23.3% YoY
Op. Margin
8.09%
▼ -4.7pp YoY
ROIC
5.06%
▼ -4.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
C$2M
▲ +68.1% YoY
Op. Cash Flow (TTM)
C$207M
▲ +5.2% YoY
Net Debt
C$836M
Cash & Equiv.
C$100M
3Y CAGR: +18.6%
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At a P/E of 17.1 and a price-to-free-cash-flow of 319.6, North American Construction Group (NOA) trades above a two-stage DCF intrinsic value of about C$-28.34 per share, so at C$13.24 the stock looks overvalued (314.1% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, North American Construction Group scores 43/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.6%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about C$-28.34 per share for NOA, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around C$-21.26. At today's C$13.24, that puts the stock about 314.1% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
North American Construction Group scores 43 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 8.1% operating margin and a 5.1% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, North American Construction Group pays a regular dividend of about C$0.48 per share per year (typically in quarterly installments), a yield of roughly 2.6% at the current price. That is a payout ratio of about 41.1% of earnings, so the dividend is well covered. North American Construction Group has grown the dividend at roughly 31.9% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For NOA's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. NOA currently trades above its estimated intrinsic value and scores 43/100 on quality (mixed). It also yields about 2.6%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.