ARCOSA INC (ACA) Stock Fundamental Analysis
USA - NYSE:ACA - US0396531008 - Common Stock
95.73 USD
-1.2 (-1.24%)
95.73 USD
0 (0%)
Taking everything into account, ACA scores 5 out of 10 in our fundamental rating. ACA was compared to 52 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of ACA get a neutral evaluation. Nothing too spectacular is happening here. ACA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ACA had positive earnings in the past year.
In the past year ACA had a positive cash flow from operations.
Each year in the past 5 years ACA has been profitable.
In the past 5 years ACA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ACA (1.84%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 3.68%, ACA is doing worse than 61.54% of the companies in the same industry.
ACA has a Return On Invested Capital of 4.09%. This is comparable to the rest of the industry: ACA outperforms 44.23% of its industry peers.
ACA had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 17.22%.
The last Return On Invested Capital (4.09%) for ACA is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 3.68% | ||
| ROIC | 4.09% |
ROA(3y)4.56%
ROA(5y)3.97%
ROE(3y)7.3%
ROE(5y)6.21%
ROIC(3y)3.99%
ROIC(5y)4.04%
1.3 Margins
ACA's Profit Margin of 3.45% is in line compared to the rest of the industry. ACA outperforms 53.85% of its industry peers.
ACA's Profit Margin has declined in the last couple of years.
ACA has a Operating Margin of 8.93%. This is in the better half of the industry: ACA outperforms 67.31% of its industry peers.
ACA's Operating Margin has declined in the last couple of years.
ACA's Gross Margin of 20.82% is fine compared to the rest of the industry. ACA outperforms 65.38% of its industry peers.
In the last couple of years the Gross Margin of ACA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.93% | ||
| PM (TTM) | 3.45% | ||
| GM | 20.82% |
OM growth 3Y11.96%
OM growth 5Y-2.91%
PM growth 3Y2.37%
PM growth 5Y-10.81%
GM growth 3Y3.69%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACA is destroying value.
The number of shares outstanding for ACA has been increased compared to 1 year ago.
The number of shares outstanding for ACA has been increased compared to 5 years ago.
ACA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.19 indicates that ACA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.19, ACA perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
The Debt to FCF ratio of ACA is 5.72, which is a neutral value as it means it would take ACA, 5.72 years of fcf income to pay off all of its debts.
ACA's Debt to FCF ratio of 5.72 is in line compared to the rest of the industry. ACA outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that ACA is somewhat dependend on debt financing.
ACA's Debt to Equity ratio of 0.67 is in line compared to the rest of the industry. ACA outperforms 51.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.42
WACC9.67%
2.3 Liquidity
A Current Ratio of 2.12 indicates that ACA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.12, ACA belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that ACA should not have too much problems paying its short term obligations.
ACA has a better Quick ratio (1.35) than 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
ACA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.62%.
The Earnings Per Share has been growing slightly by 5.16% on average over the past years.
Looking at the last year, ACA shows a quite strong growth in Revenue. The Revenue has grown by 9.78% in the last year.
ACA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.15% yearly.
EPS 1Y (TTM)2.62%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%39.56%
Revenue 1Y (TTM)9.78%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%10.86%
3.2 Future
Based on estimates for the next years, ACA will show a very strong growth in Earnings Per Share. The EPS will grow by 22.40% on average per year.
ACA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.56% yearly.
EPS Next Y33.55%
EPS Next 2Y26.07%
EPS Next 3Y22.4%
EPS Next 5YN/A
Revenue Next Year10.47%
Revenue Next 2Y8.49%
Revenue Next 3Y6.56%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ACA is valuated quite expensively with a Price/Earnings ratio of 30.58.
Compared to the rest of the industry, the Price/Earnings ratio of ACA indicates a somewhat cheap valuation: ACA is cheaper than 61.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ACA to the average of the S&P500 Index (27.38), we can say ACA is valued inline with the index average.
A Price/Forward Earnings ratio of 20.01 indicates a rather expensive valuation of ACA.
Based on the Price/Forward Earnings ratio, ACA is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
ACA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.58 | ||
| Fwd PE | 20.01 |
4.2 Price Multiples
80.77% of the companies in the same industry are more expensive than ACA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACA indicates a somewhat cheap valuation: ACA is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.96 | ||
| EV/EBITDA | 13.62 |
4.3 Compensation for Growth
ACA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ACA's earnings are expected to grow with 22.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)5.92
EPS Next 2Y26.07%
EPS Next 3Y22.4%
5. Dividend
5.1 Amount
ACA has a yearly dividend return of 0.21%, which is pretty low.
Compared to an average industry Dividend Yield of 1.54, ACA pays a better dividend. On top of this ACA pays more dividend than 80.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ACA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
5.2 History
The dividend of ACA decreases each year by -0.48%.
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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-0.48%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
ACA pays out 10.63% of its income as dividend. This is a sustainable payout ratio.
DP10.63%
EPS Next 2Y26.07%
EPS Next 3Y22.4%
95.73
-1.2 (-1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.63%
Inst Owner Change-1.69%
Ins Owners1.83%
Ins Owner Change6.34%
Market Cap4.69B
Analysts86
Price Target118.32 (23.6%)
Short Float %2.37%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
Yearly Dividend0.2
Dividend Growth(5Y)-0.48%
DP10.63%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)89.94%
Min EPS beat(2)17.65%
Max EPS beat(2)162.24%
EPS beat(4)3
Avg EPS beat(4)36.02%
Min EPS beat(4)-40.32%
Max EPS beat(4)162.24%
EPS beat(8)7
Avg EPS beat(8)29.61%
EPS beat(12)11
Avg EPS beat(12)31.83%
EPS beat(16)15
Avg EPS beat(16)40.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)1.83%
Revenue beat(4)1
Avg Revenue beat(4)-3.36%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)1.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.98%
Revenue beat(12)7
Avg Revenue beat(12)0.67%
Revenue beat(16)11
Avg Revenue beat(16)2.34%
PT rev (1m)3.73%
PT rev (3m)3.73%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)1.04%
EPS NY rev (1m)0%
EPS NY rev (3m)4.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.58 | ||
| Fwd PE | 20.01 | ||
| P/S | 1.75 | ||
| P/FCF | 15.96 | ||
| P/OCF | 10.58 | ||
| P/B | 1.87 | ||
| P/tB | 5.58 | ||
| EV/EBITDA | 13.62 |
EPS(TTM)3.13
EY3.27%
EPS(NY)4.78
Fwd EY5%
FCF(TTM)6
FCFY6.27%
OCF(TTM)9.05
OCFY9.45%
SpS54.56
BVpS51.15
TBVpS17.14
PEG (NY)0.91
PEG (5Y)5.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 3.68% | ||
| ROCE | 5.33% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.27% | ||
| ROICexgc | 6.98% | ||
| OM | 8.93% | ||
| PM (TTM) | 3.45% | ||
| GM | 20.82% | ||
| FCFM | 11% |
ROA(3y)4.56%
ROA(5y)3.97%
ROE(3y)7.3%
ROE(5y)6.21%
ROIC(3y)3.99%
ROIC(5y)4.04%
ROICexc(3y)4.17%
ROICexc(5y)4.21%
ROICexgc(3y)7.17%
ROICexgc(5y)7.33%
ROCE(3y)5.21%
ROCE(5y)5.27%
ROICexcg growth 3Y4.01%
ROICexcg growth 5Y-10.09%
ROICexc growth 3Y4.98%
ROICexc growth 5Y-11.63%
OM growth 3Y11.96%
OM growth 5Y-2.91%
PM growth 3Y2.37%
PM growth 5Y-10.81%
GM growth 3Y3.69%
GM growth 5Y0.93%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 69.44% | ||
| Cap/Sales | 5.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.67% | ||
| Profit Quality | 319.09% | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 2.19 |
F-Score5
WACC9.67%
ROIC/WACC0.42
Cap/Depr(3y)104.81%
Cap/Depr(5y)89.02%
Cap/Sales(3y)7.45%
Cap/Sales(5y)6.15%
Profit Quality(3y)128.08%
Profit Quality(5y)133.99%
High Growth Momentum
Growth
EPS 1Y (TTM)2.62%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%39.56%
EPS Next Y33.55%
EPS Next 2Y26.07%
EPS Next 3Y22.4%
EPS Next 5YN/A
Revenue 1Y (TTM)9.78%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%10.86%
Revenue Next Year10.47%
Revenue Next 2Y8.49%
Revenue Next 3Y6.56%
Revenue Next 5YN/A
EBIT growth 1Y27.67%
EBIT growth 3Y20.99%
EBIT growth 5Y5.01%
EBIT Next Year134.45%
EBIT Next 3Y47.68%
EBIT Next 5YN/A
FCF growth 1Y717.22%
FCF growth 3Y56.55%
FCF growth 5Y2.7%
OCF growth 1Y103.53%
OCF growth 3Y44.47%
OCF growth 5Y6.95%