Aecon Group (TSX:ARE) Beneish M-Score: -2.92 (As of Jun. 25, 2026)

What is Aecon Group Beneish M-Score?

Aecon Group TSX:ARE -1.28% 80 Beneish M-Score is -2.92 as of Jun. 25, 2026. GuruFocus rates TSX:ARE with a GF Score™ of 80/100 and a GF Value™ of C$25.80 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,704 Construction companies, Aecon Group ranks better than 78.64% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.92 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Aecon Group's Beneish M-Score or its related term are showing as below:

TSX:ARE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.27 Med: -2.5 Max: -1.11
Current: -2.92

During the past 13 years, the highest Beneish M-Score of Aecon Group was -1.11. The lowest was -3.27. And the median was -2.50.

Aecon Group Beneish M-Score Related Terms

Aecon Group Beneish M-Score Historical Data

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The historical data trend for Aecon Group's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Aecon Group Beneish M-Score Chart

Aecon Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.19

-2.01

-2.62

-2.48

-2.65

Aecon Group Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-2.31	-2.77	-2.50	-2.65	-2.92

TSX:ARE vs PWR, FIX, EME: Beneish M-Score Comparison

For the Engineering & Construction subindustry, Aecon Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Aecon Group Beneish M-Score vs Construction Industry

For the Construction industry and Industrials sector, Aecon Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Aecon Group's Beneish M-Score falls into.

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Aecon Group Inc TSX:ARE

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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Aecon Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Aecon Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9204

0.528 * 0.4506

0.404 * 0.9901

0.892 * 1.263

0.115 * 1.0494

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9372

4.679 * -0.068981

0.327 * 1.0002

-2.92

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was C$2,191 Mil.
Revenue was 1256.994 + 1541.228 + 1530.221 + 1301.579 = C$5,630 Mil.
Gross Profit was 100.547 + 144.114 + 131.267 + 76.914 = C$453 Mil.
Total Current Assets was C$2,849 Mil.
Total Assets was C$4,045 Mil.
Property, Plant and Equipment(Net PPE) was C$442 Mil.
Depreciation, Depletion and Amortization(DDA) was C$106 Mil.
Selling, General, & Admin. Expense(SGA) was C$258 Mil.
Total Current Liabilities was C$2,461 Mil.
Long-Term Debt & Capital Lease Obligation was C$413 Mil.
Net Income was -17.921 + 20.721 + 39.997 + -7.625 = C$35 Mil.
Non Operating Income was -7.534 + 51.927 + 3.495 + 5.099 = C$53 Mil.
Cash Flow from Operations was -31.731 + 197.409 + 55.945 + 39.59 = C$261 Mil.

Total Receivables was C$1,885 Mil.
Revenue was 1061.65 + 1267.013 + 1275.347 + 853.779 = C$4,458 Mil.
Gross Profit was 41.79 + 107.243 + 150.425 + -137.907 = C$162 Mil.
Total Current Assets was C$2,373 Mil.
Total Assets was C$3,381 Mil.
Property, Plant and Equipment(Net PPE) was C$372 Mil.
Depreciation, Depletion and Amortization(DDA) was C$95 Mil.
Selling, General, & Admin. Expense(SGA) was C$218 Mil.
Total Current Liabilities was C$1,986 Mil.
Long-Term Debt & Capital Lease Obligation was C$416 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(2190.693 / 5630.022)	/	(1884.649 / 4457.789)
	=	0.389109	/	0.422777
	=	0.9204

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(161.551 / 4457.789)	/	(452.842 / 5630.022)
	=	0.03624	/	0.080433
	=	0.4506

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (2849.07 + 442.134) / 4044.977)	/	(1 - (2372.784 + 372.125) / 3381.306)
	=	0.186348	/	0.18821
	=	0.9901

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	5630.022	/	4457.789
	=	1.263

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(94.962 / (94.962 + 372.125))	/	(106.24 / (106.24 + 442.134))
	=	0.203307	/	0.193736
	=	1.0494

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(258.146 / 5630.022)	/	(218.09 / 4457.789)
	=	0.045852	/	0.048923
	=	0.9372

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((413.051 + 2461.211) / 4044.977)	/	((415.833 + 1986.278) / 3381.306)
	=	0.710576	/	0.710409
	=	1.0002

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(35.172 - 52.987	-	261.213)	/	4044.977
	=	-0.068981

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Aecon Group has a M-score of -2.92 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →

What does a Beneish M-Score of -2.92 mean?

Aecon Group (TSX:ARE) has a Beneish M-Score of -2.92 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Aecon Group and its competitors. According to the industry distribution chart, Aecon Group ranks #364 out of 1704 companies in the Construction industry, placing it in the top 21.4%.

Is Aecon Group's Beneish M-Score too high?

Aecon Group's current Beneish M-Score is -2.92. Based on the distribution chart, Aecon Group ranks #364 out of 1704 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Aecon Group has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Aecon Group's Beneish M-Score compare to PWR and FIX?

According to the Construction industry distribution chart, Aecon Group ranks #364 out of 1704 companies for Beneish M-Score. This places Aecon Group in the top 21% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Beneish M-Score for a Construction company?

A good Beneish M-Score depends on the Construction industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Beneish M-Score mean?

A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Aecon Group and its competitors. Aecon Group's current Beneish M-Score is -2.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Aecon Group stock overvalued right now?

Based on GuruFocus' analysis, Aecon Group (TSX:ARE) is currently considered Significantly Overvalued. The stock's GF Value™ is C$25.80, compared to a current price of C$44.09 — trading 70.9% above its estimated fair value. The current Beneish M-Score is -2.92. Aecon Group's overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Beneish M-Score calculated?

Beneish M-Score is calculated from a company's financial statements. For Aecon Group (TSX:ARE), the current Beneish M-Score is -2.92 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Aecon Group (TSX:ARE) Overvalued in 2026?

Based on GuruFocus' analysis, Aecon Group stock appears to be overvalued. The current stock price of C$44.09 is trading 70.9% above its estimated GF Value™ of C$25.80. GuruFocus considers Aecon Group to be Significantly Overvalued.

Key valuation signals for TSX:ARE:

Beneish M-Score: -2.92
GF Value™: C$25.80 vs. price of C$44.09 (70.9% above fair value)
GF Score™: 80/100 with 5 warning signs

No single metric tells the full story. See the TSX:ARE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Aecon Group Business Description

Industry Industrials Construction

Comparable Companies TSX:BDT TSX:BDGI TSX:DRT TSXV:PWER TSXV:UIG XCNQ:BYT TSXV:RGI TSX:STN TSX:ATRL PWR XPAR:DG FIX NSE:LT XAMS:FER XKRX:028260 XTER:HOT XMAD:ACS EME MTZ SHSE:601668

Other Exchanges AEGXF:USA 2AE:Germany

Address 20 Carlson Court, Suite 105, Toronto, ON, CAN, M9W 7K6

Website https://www.aecon.com

Aecon Group Inc is a Canada-based company that operates in two segments: Construction and Concessions. The Construction segment includes various aspects of the construction of public and private infrastructure projects. Its concessions segment is engaged in the development, financing, construction, and operation of construction projects. The company generates the maximum revenue from the Construction segment.

80GF Score

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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$44.09

Price

C$25.80

GF Value

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