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TSE:NOA
North American Construction Group (NOA.TO)
Financials 
Technical Analysis 
Insiders own about 9% of NOA. On a one-year basis, its total return is 60%, it pays a small dividend of 1.5%, its five-year sales and earnings CAGR are impressive at 19% and 37%. Forward sales and earnings estimates are strong, and profit margins have been expanding nicely over the past several years. It is a smaller name ($740M market cap), and its free cash flow yield is around 5%. It trades at a cheap valuation of 6.4X forward earnings and 0.6X forward sales. It has some small-cap risks, but its fundamentals and share price performance have been strong. We feel that NOA looks fairly attractive here, although we would be mindful of position sizing and small-cap risks.
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Premium contentTrading at 11x earnings and 2.3x book, we again reiterate NOA as a TOP PICK. The company recently announced a $395 million acquisition in Australia that will expand their presence there further. We recommend trailing up the stop (from $25) to $26 at this time, looking to achieve $40 -- upside potential over 35%. Yield 1.2%
(Analysts’ price target is $40.40)Premium contentNOA is reiterated as a TOP PICK following its recent announcement to acquire an Australian heavy equipment services company. This will greatly expand their market reach. It currently trades at 13x earnings and supports a 26% ROE. Cash reserves are growing, while debt is retired and shares bought back. We recommend trailing up the stop (from $23) to $25, looking to achieve $40 -- upside potential of 19%. Yield 1.0%
(Analysts’ price target is $40.40)Premium contentThe stock was also up on very strong earnings, with EPS more than 14% ahead of estimates and sales more than 8% ahead. For a $900M company, the $395M acquisition is very significant. NOA entered Australia two years ago, and this deal instantly gives it scale and market share, and allows it to serve its global customers better. It also further diversifies its overall business. It adds about 1,400 employees and a $4B backlog. It is highly accretive to sales and earnings. Debt-financed, there is risk, but the earnings boost is substantial. We think it is a solid deal, and the stock remains cheap overall despite the gains last week.
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Premium contentWe reiterate NOA, one of Canada's largest heavy construction and mining contractors as a TOP PICK. The company recently reported record revenue on wholly-owned business, as oil sands activity improved and operating margins widened. We like that cash reserves are growing, while debt is retired and shares bought back. It trades at 10x earnings and 2x book, while supporting a 24% ROE. We continue to recommend a stop-loss at $23, looking to achieve $30 -- upside potential of 18%. Yield 1.3%
(Analysts’ price target is $30.17)Premium contentPremium contentDiversified beyond heavy oil, now more of a full engineering company for the resource industry. Stock's acting better. He hasn't added recently. Not as screamingly cheap as it was. Increased costs are squeezing margins.
John ZechnerPremium contentWe again reiterate NOA as a TOP PICK. Management reports the company is experiencing "less skilled trade vacancies and improved equipment utilization" as it emerges from the effects of the pandemic. It trades under 2x book value and supports a 20% ROE. The dividend is backed by a payout ratio under 20% of cash flow. We like that cash reserves have been growing, while debt is aggressively retired and shares are bought back. We recommend trailing up the stop (from $14) to $16, looking to achieve $24 -- upside potential of 16%. Yield %
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North American Construction Group (NOA.TO) Frequently Asked Questions
What is North American Construction Group stock symbol?
North American Construction Group is a Canadian stock, trading under the symbol NOA.TO (previously NOA-T on Stockchase) on the Toronto Stock Exchange (NOA-CT). It is usually referred to as TSX:NOA or NOA.TO
Is North American Construction Group a buy or a sell?
In the last year, no analyst issued a Buy, Sell, or Hold rating on NOA.TO (previously NOA-T on Stockchase) on Stockchase. Read the latest expert commentary for North American Construction Group.
Is North American Construction Group a good investment or a top pick?
North American Construction Group was recommended as a Top Pick by The Panic-Proof Portfolio (Stockchase Research) on 2022-08-11. Read the latest stock experts ratings for North American Construction Group.
Why is North American Construction Group stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for North American Construction Group.
Is North American Construction Group worth watching?
North American Construction Group is followed by 36 investors on Stockchase and is a trending stock that is worth watching.
What is North American Construction Group stock price?
On 2026-06-19, North American Construction Group (NOA.TO) stock closed at a price of $19.36.
We once again reiterate NOA, a heavy equipment services company operating in the oil sands sector, as a TOP PICK. It trades at 12x earnings and 2.2x book and supports a 23% ROE. Free cash flow from operations tripled last quarter, according to the latest reported earnings. We recommend keeping a tight stop at $26 at this time, looking to achieve $43 -- upside potential over 50%. Yield 1.3%
(Analysts’ price target is $43.83)