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Aecon Group Inc T.ARE

Alternate Symbol(s):  AEGXF

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.


TSX:ARE - Post by User

Comment by Gabrielon Oct 05, 2024 12:58pm
77 Views
Post# 36254577

RE:RE:Collaborative projects

RE:RE:Collaborative projects

LCcapital wrote:
Gabriel wrote:

Mark my words, contractors involved in collaborative projects will trade at the same multiple as engineering services firms as the variability in their earnings will be comparable. Give it 5 years. So let me see here :

EBITDA construction : > 500m * 12x = 6B
EBITDA concessions : > 200m * 12x 2= 2.4B

< 60m shares left after 2 NCIB programs.

> 140$ per share.



That is a strong claim - I am not sure I totally agree. The gap should close I agree with collaborative pricing and  also general improvements to construction firms and their processes, but ultimately isn't engineering a business with a less variable cost structure, and therefore will have a higher multiple? 


If the variability in earnings is identical they will definitely trade at the same multiple.
That is precisely what I wrote. I beg to ask what is unclear. Thanks LC.

Mark my words, contractors involved in collaborative projects will trade at the same multiple as engineering services firms as the variability in their earnings will be comparable.

 

Mark my words, contractors involved in collaborative projects will trade at the same multiple as engineering services firms as the variability in their earnings will be comparable.
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