Aecon Group Inc T.ARE

Alternate Symbol(s): AEGXF

Industrials Conglomerates

Aecon Group Inc. is a Canada-based construction and infrastructure development company. The Company delivers integrated solutions to private and public sector clients throughout Canada and other countries. It operates through two segments within the infrastructure development industry: Construction and Concessions. Its Construction segment includes all aspects of the construction of both public and private infrastructure, primarily in Canada, and internationally and focuses primarily on the civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure and industrial infrastructure. Its Concessions segment include the development, financing, build and operation of construction projects primarily by way of public-private partnership contract structures, as well as integrating the services of all project participants. The Company’s projects include Annacis Water Supply Tunnel, Bell Canada Gigabit Fiber Service, Finch West LRT, and others.

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Aecon Group Inc > Top Pick

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Comment by Possibleidiot01on Sep 19, 2024 3:24pm

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Post# 36231676

RE:RE:Top Pick

Aecon Group (ARE TSX)

It is a Canadian infrastructure construction company. The company has a growing backlog of projects as global infrastructure is being built and replaced. The company is growing both organically and via acquisition which has led to a history of strong dividend growth. Recently the company turned its focus to better margins on the projects. As this is recognized the stock price should trade in line with historical multiples that are higher than current valuation. Last purchase was $19.64, funds own, none owned personally, and none owned by my family.

TOP PICK

Global infrastructure building. Past projects haven't necessarily had the best margins. Right-sized all of that. Going to focus on increasing margins. Growing organically and by acquisition. Dividend has about an 8% annual compound growth rate over the last 10 years. Yield is 3.7%.

Trading at half the multiple than historically. Huge backlog with infrastructure projects, so it will continue to grow by picking up projects and by making acquisitions.

(Analysts’ price target is $21.00)

contractors

$20.310