North American Net Income vs. Current Valuation

NOA Stock  CAD 29.40  0.15  0.51%   
Considering North American's profitability and operating efficiency indicators, North American Construction is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess North American's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2006-06-30
Previous Quarter
14 M
Current Value
13.9 M
Quarterly Volatility
21.7 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, North American's Price To Sales Ratio is very stable compared to the past year. As of the 9th of December 2024, Days Sales Outstanding is likely to grow to 80.83, while EV To Sales is likely to drop 1.25. At this time, North American's Net Income Per Share is very stable compared to the past year. As of the 9th of December 2024, Income Quality is likely to grow to 4.50, while Accumulated Other Comprehensive Income is likely to drop (427.4 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.150.1611
Significantly Down
Slightly volatile
For North American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of North American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well North American Construction utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between North American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of North American Construction over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between North American's value and its price as these two are different measures arrived at by different means. Investors typically determine if North American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, North American's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

North American Const Current Valuation vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining North American's current stock value. Our valuation model uses many indicators to compare North American value to that of its competitors to determine the firm's financial worth.
North American Construction is considered to be number one stock in net income category among its peers. It also is rated top company in current valuation category among its peers reporting about  24.44  of Current Valuation per Net Income. At this time, North American's Net Income is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value North American by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for North American's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

North Current Valuation vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

North American

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
63.14 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

North American

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
1.54 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

North Current Valuation vs Competition

North American Construction is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Energy industry is now estimated at about 3.26 Billion. North American totals roughly 1.54 Billion in current valuation claiming about 47% of equities under Energy industry.

North American Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in North American, profitability is also one of the essential criteria for including it into their portfolios because, without profit, North American will eventually generate negative long term returns. The profitability progress is the general direction of North American's change in net profit over the period of time. It can combine multiple indicators of North American, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-407 K-427.4 K
Operating Income95.7 M100.5 M
Income Before Tax86 M90.3 M
Total Other Income Expense Net-9.8 M-10.2 M
Net Income63.1 M66.3 M
Income Tax Expense22.8 M24 M
Net Income From Continuing Ops63.1 M66.3 M
Net Income Applicable To Common Shares77.5 M81.4 M
Interest Income15.3 M9.4 M
Net Interest Income-36.9 M-35.1 M
Change To Netincome-6 M-5.7 M
Net Income Per Share 2.38  2.50 
Income Quality 4.28  4.50 
Net Income Per E B T 0.73  0.51 

North Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on North American. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of North American position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the North American's important profitability drivers and their relationship over time.

Use North American in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if North American position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in North American will appreciate offsetting losses from the drop in the long position's value.

North American Pair Trading

North American Construction Pair Trading Analysis

The ability to find closely correlated positions to North American could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace North American when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back North American - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling North American Construction to buy it.
The correlation of North American is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as North American moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if North American Const moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for North American can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your North American position

In addition to having North American in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Office Supplies Thematic Idea Now

Office Supplies
Office Supplies Theme
Companies producing and selling office supplies, and accessories. The Office Supplies theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Office Supplies Theme or any other thematic opportunities.
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When determining whether North American Const offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of North American's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of North American Construction Stock. Outlined below are crucial reports that will aid in making a well-informed decision on North American Construction Stock:
Check out Correlation Analysis.
You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
To fully project North American's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of North American Const at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include North American's income statement, its balance sheet, and the statement of cash flows.
Potential North American investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although North American investors may work on each financial statement separately, they are all related. The changes in North American's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on North American's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.