North American Construction Group Ltd. Common Shares (no par) (NOA)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at North American Construction Group, I see a cyclical heavy-equipment and mining-services contractor, not a franchise. It sells labor and equipment to resource developers, so pricing power is limited and results depend on commodity capital spending. Revenue growth of 25.05% is impressive, but profit growth of -8.53% tells me the extra work is not converting into earnings. In the latest reported quarter, fiscal Q2 2026, revenue was $401.0 million and net income was $9.4 million, a 2.34% margin. That is thin. Returns are weak: FairStock calculates ROE of 6.88% and ROCE of 3.38%. Debt is heavy at D/E 2.47, and the Altman Z-Score of 0.47 raises balance-sheet concerns. Free cash flow is only $9.4 million trailing, a 2.4% FCF yield. On the positive side, at the 2026-10-13 close of $11.82, P/B is 0.91, EV/EBITDA is 4.19, and the Graham Number is $17.95, giving a 34.15% margin of safety. Piotroski is 6/9. The dividend yield is 2.73%, though cash generation is modest. FairStock's score is 36/100, and no Lynch category is assigned because only zero years of filed results are available, needing three. This is a classic Graham situation: statistically cheap, but not obviously safe. I'd want debt reduction, better margins, and durable free cash flow before calling it a high-quality bargain.

In plain English: North American Construction Group provides mining and heavy construction services, mostly to energy and resource customers in Canada, Australia, and the United States. The business looks weak because profits are thin and it carries a lot of debt, even though sales grew. At the recent price, the stock looks cheaper than its accounting value, but the weak profits and debt make it a risky-looking cheap stock rather than a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer