Bullboard - Stock Discussion Forum North American Construction Group Ltd T.NOA.DB.A

Primary Symbol: T.NOA Alternate Symbol(s): T.NOA.DB.B | NOA

North American Construction Group Ltd. is a Canada-based company. The Company provides a range of mining and heavy civil construction services to customer in the resource development and industrial construction sectors within Canada, the United States, and Australia. Its segments are Heavy Equipment - Canada, Heavy Equipment - Australia, and Other. Heavy Equipment - Canada and Heavy Equipment -... see more

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TSX:NOA - Post Discussion

North American Construction Group Ltd > National Bank Outperform $46

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Post by danche on Mar 15, 2024 4:37pm

National Bank Outperform $46

target to $46.00 (from $43.00) on faster de-leveraging that enhances shareholder value.

Key Takeaways: While Q4/23 EBITDA missed by $6 mln vs. consensus, a -6% downdraft (even for a stock that was up +23% YTD) is too much for one simple reason. De-leveraging is taking place much faster than expected. Nuna tightening up will take place in the seasonally least important Q1 (for the said asset) while a 3.3x EV/EBITDA valuation stands in stark contrast to other CAD construction names that have continued to power upwards of 6.0x marks. FCF yield (on our definition, not guidance) for NOA stands close to 10%, more than double the likes of BDT. We are comfortable to buy more NOA at these levels