ARCOSA INC (ACA)
US0396531008 - Common Stock
We assign a fundamental rating of 6 out of 10 to ACA. ACA was compared to 40 industry peers in the Construction & Engineering industry. ACA has an excellent profitability rating, but there are some minor concerns on its financial health. ACA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACA was profitable.
In the past year ACA had a positive cash flow from operations.
ACA had positive earnings in each of the past 5 years.
ACA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ACA (4.45%) is better than 67.50% of its industry peers.
ACA has a Return On Equity (6.83%) which is in line with its industry peers.
ACA has a Return On Invested Capital (4.62%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACA is below the industry average of 8.46%.
The 3 year average ROIC (4.00%) for ACA is below the current ROIC(4.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 6.83% | ||
| ROIC | 4.62% |
ROA(3y)4.65%
ROA(5y)4.56%
ROE(3y)7.19%
ROE(5y)6.69%
ROIC(3y)4%
ROIC(5y)4.69%
1.3 Margins
ACA's Profit Margin of 6.90% is amongst the best of the industry. ACA outperforms 90.00% of its industry peers.
ACA's Profit Margin has improved in the last couple of years.
ACA has a better Operating Margin (7.92%) than 80.00% of its industry peers.
ACA's Operating Margin has been stable in the last couple of years.
The Gross Margin of ACA (19.23%) is better than 65.00% of its industry peers.
ACA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.92% | ||
| PM (TTM) | 6.9% | ||
| GM | 19.23% |
OM growth 3Y-1.2%
OM growth 5Y-0.43%
PM growth 3Y8.07%
PM growth 5Y5.88%
GM growth 3Y-0.86%
GM growth 5Y0.64%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACA is destroying value.
Compared to 1 year ago, ACA has more shares outstanding
ACA has less shares outstanding than it did 5 years ago.
ACA has a better debt/assets ratio than last year.
2.2 Solvency
ACA has an Altman-Z score of 3.03. This indicates that ACA is financially healthy and has little risk of bankruptcy at the moment.
ACA's Altman-Z score of 3.03 is fine compared to the rest of the industry. ACA outperforms 62.50% of its industry peers.
ACA has a debt to FCF ratio of 9.89. This is a negative value and a sign of low solvency as ACA would need 9.89 years to pay back of all of its debts.
ACA has a Debt to FCF ratio (9.89) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.24 indicates that ACA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.24, ACA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 9.89 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.48
WACC9.55%
2.3 Liquidity
ACA has a Current Ratio of 2.12. This indicates that ACA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.12, ACA belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
ACA has a Quick Ratio of 1.18. This is a normal value and indicates that ACA is financially healthy and should not expect problems in meeting its short term obligations.
ACA has a Quick ratio of 1.18. This is in the lower half of the industry: ACA underperforms 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
ACA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.82%, which is quite impressive.
ACA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.25% yearly.
ACA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.90%.
The Revenue has been growing by 9.58% on average over the past years. This is quite good.
EPS 1Y (TTM)46.82%
EPS 3Y9.65%
EPS 5Y16.25%
EPS growth Q2Q183.33%
Revenue 1Y (TTM)2.9%
Revenue growth 3Y6.04%
Revenue growth 5Y9.58%
Revenue growth Q2Q16.37%
3.2 Future
The Earnings Per Share is expected to grow by 10.77% on average over the next years. This is quite good.
Based on estimates for the next years, ACA will show a quite strong growth in Revenue. The Revenue will grow by 9.27% on average per year.
EPS Next Y3.88%
EPS Next 2Y10.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.72%
Revenue Next 2Y9.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.94, ACA is valued on the expensive side.
Based on the Price/Earnings ratio, ACA is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ACA to the average of the S&P500 Index (24.92), we can say ACA is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.05, ACA is valued on the expensive side.
ACA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.49. ACA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 23.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACA indicates a somewhat cheap valuation: ACA is cheaper than 70.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACA is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.32 | ||
| EV/EBITDA | 12.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACA does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ACA may justify a higher PE ratio.
PEG (NY)6.18
PEG (5Y)1.47
EPS Next 2Y10.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.26%, ACA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.86, ACA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.26, ACA pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
5.2 History
ACA has been paying a dividend for over 5 years, so it has already some track record.
ACA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
ACA pays out 6.16% of its income as dividend. This is a sustainable payout ratio.
DP6.16%
EPS Next 2Y10.77%
EPS Next 3YN/A
ARCOSA INC
NYSE:ACA (4/26/2024, 7:04:00 PM)
After market: 77.34 0 (0%)77.34
+0.64 (+0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 23.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.18
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 6.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.92% | ||
| PM (TTM) | 6.9% | ||
| GM | 19.23% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)46.82%
EPS 3Y9.65%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.9%
Revenue growth 3Y6.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y