NOANorth American Construction Group Ltd.
Is the business good?
A genuinely good business: earnings fully cash-backed (4.0×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
A balanced mix of margins, efficiency, and leverage. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NOA?
North American Construction Group Ltd. earns 6.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.2 points below what the capital costs: growth destroys value
- Operating margin
- 8.5%
Operating margin · Oil & Gas Equipment & Services median 10% · fiscal year to FY2025
- Cash conversion
- 4.04×
Cash conversion · 2.15× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.4%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | 8.4% |
| FY2022 | 9.3% |
| FY2023 | 10.0% |
| FY2024 | 13% |
| FY2025 | 8.5% |
Details›
- Gross marginfiscal year to FY2025
- 13%
- Operating marginfiscal year to FY2025
- 8.5%
- Net marginfiscal year to FY2025
- 2.6%
- Free cash flow margin
- −1.3%
- Revenue, trailing twelve months
- $1.28B
- Free cash flow, trailing twelve months
- −$17M
- Net income, trailing twelve months
- $34M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.