ARCOSA INC (ACA) Stock Fundamental Analysis
NYSE:ACA - New York Stock Exchange, Inc. - US0396531008 - Common Stock - Currency: USD
ACA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 51 industry peers in the Construction & Engineering industry. ACA has a medium profitability rating, but doesn't score so well on its financial health evaluation. ACA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ACA had positive earnings in the past year.
ACA had a positive operating cash flow in the past year.
Each year in the past 5 years ACA has been profitable.
ACA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACA's Return On Assets of 1.58% is in line compared to the rest of the industry. ACA outperforms 45.10% of its industry peers.
ACA has a Return On Equity (3.18%) which is in line with its industry peers.
ACA has a Return On Invested Capital (3.54%) which is in line with 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 16.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 3.18% | ||
| ROIC | 3.54% |
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 3.00% is in line compared to the rest of the industry. ACA outperforms 58.82% of its industry peers.
In the last couple of years the Profit Margin of ACA has declined.
ACA has a Operating Margin of 7.85%. This is in the better half of the industry: ACA outperforms 70.59% of its industry peers.
In the last couple of years the Operating Margin of ACA has declined.
ACA has a better Gross Margin (20.32%) than 62.75% of its industry peers.
ACA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.85% | ||
| PM (TTM) | 3% | ||
| GM | 20.32% |
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.
Compared to 1 year ago, ACA has more shares outstanding
ACA has more shares outstanding than it did 5 years ago.
ACA has a worse debt/assets ratio than last year.
2.2 Solvency
ACA has an Altman-Z score of 2.01. This is not the best score and indicates that ACA is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.01, ACA perfoms like the industry average, outperforming 45.10% of the companies in the same industry.
ACA has a debt to FCF ratio of 6.70. This is a slightly negative value and a sign of low solvency as ACA would need 6.70 years to pay back of all of its debts.
ACA has a Debt to FCF ratio (6.70) which is in line with its industry peers.
ACA has a Debt/Equity ratio of 0.68. This is a neutral value indicating ACA is somewhat dependend on debt financing.
The Debt to Equity ratio of ACA (0.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.7 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.36
WACC9.97%
2.3 Liquidity
ACA has a Current Ratio of 1.98. 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 Current ratio of 1.98. This is amongst the best in the industry. ACA outperforms 92.16% of its industry peers.
A Quick Ratio of 1.27 indicates that ACA should not have too much problems paying its short term obligations.
The Quick ratio of ACA (1.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
ACA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.48%.
ACA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.16% yearly.
Looking at the last year, ACA shows a quite strong growth in Revenue. The Revenue has grown by 10.44% in the last year.
Measured over the past years, ACA shows a quite strong growth in Revenue. The Revenue has been growing by 8.15% on average per year.
EPS 1Y (TTM)-4.48%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%-32.88%
Revenue 1Y (TTM)10.44%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%5.58%
3.2 Future
ACA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.44% yearly.
The Revenue is expected to grow by 7.75% on average over the next years.
EPS Next Y28.38%
EPS Next 2Y24.97%
EPS Next 3Y22.44%
EPS Next 5YN/A
Revenue Next Year11.12%
Revenue Next 2Y8.56%
Revenue Next 3Y7.75%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
Based on the Price/Earnings ratio of 30.57, the valuation of ACA can be described as expensive.
Based on the Price/Earnings ratio, ACA is valued a bit cheaper than 60.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, ACA is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.01, the valuation of ACA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ACA is valued a bit cheaper than 68.63% of the companies in the same industry.
ACA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.57 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
ACA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACA is cheaper than 72.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.42 | ||
| EV/EBITDA | 13.78 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ACA's earnings are expected to grow with 22.44% in the coming years.
PEG (NY)1.08
PEG (5Y)5.92
EPS Next 2Y24.97%
EPS Next 3Y22.44%
5. Dividend
5.1 Amount
ACA has a yearly dividend return of 0.23%, which is pretty low.
Compared to an average industry Dividend Yield of 1.72, ACA pays a better dividend. On top of this ACA pays more dividend than 80.39% of the companies listed in the same industry.
With a Dividend Yield of 0.23, ACA pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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
12.55% of the earnings are spent on dividend by ACA. This is a low number and sustainable payout ratio.
DP12.55%
EPS Next 2Y24.97%
EPS Next 3Y22.44%
84.68
-0.09 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.27%
Inst Owner Change7.59%
Ins Owners1.26%
Ins Owner Change11.66%
Market Cap4.13B
Analysts86
Price Target114.07 (34.71%)
Short Float %2.27%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.2
Dividend Growth(5Y)-0.48%
DP12.55%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)60.96%
Min EPS beat(2)-40.32%
Max EPS beat(2)162.24%
EPS beat(4)3
Avg EPS beat(4)33.68%
Min EPS beat(4)-40.32%
Max EPS beat(4)162.24%
EPS beat(8)7
Avg EPS beat(8)30.95%
EPS beat(12)11
Avg EPS beat(12)37.09%
EPS beat(16)15
Avg EPS beat(16)39.57%
Revenue beat(2)1
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-4.44%
Max Revenue beat(2)1.83%
Revenue beat(4)1
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)1.83%
Revenue beat(8)4
Avg Revenue beat(8)-0.45%
Revenue beat(12)8
Avg Revenue beat(12)1.73%
Revenue beat(16)12
Avg Revenue beat(16)2.81%
PT rev (1m)0%
PT rev (3m)-4.28%
EPS NQ rev (1m)-3%
EPS NQ rev (3m)-16.94%
EPS NY rev (1m)3.97%
EPS NY rev (3m)-11.96%
Revenue NQ rev (1m)-0.87%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.57 | ||
| Fwd PE | 18.01 | ||
| P/S | 1.59 | ||
| P/FCF | 16.42 | ||
| P/OCF | 9.82 | ||
| P/B | 1.68 | ||
| P/tB | 5.29 | ||
| EV/EBITDA | 13.78 |
EPS(TTM)2.77
EY3.27%
EPS(NY)4.7
Fwd EY5.55%
FCF(TTM)5.16
FCFY6.09%
OCF(TTM)8.63
OCFY10.19%
SpS53.37
BVpS50.32
TBVpS16
PEG (NY)1.08
PEG (5Y)5.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 3.18% | ||
| ROCE | 4.62% | ||
| ROIC | 3.54% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 6.07% | ||
| OM | 7.85% | ||
| PM (TTM) | 3% | ||
| GM | 20.32% | ||
| FCFM | 9.66% |
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 | 0.68 | ||
| Debt/FCF | 6.7 | ||
| Debt/EBITDA | 4.08 | ||
| Cap/Depr | 82.26% | ||
| Cap/Sales | 6.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.58% | ||
| Profit Quality | 322.02% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.01 |
F-Score5
WACC9.97%
ROIC/WACC0.36
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)-4.48%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%-32.88%
EPS Next Y28.38%
EPS Next 2Y24.97%
EPS Next 3Y22.44%
EPS Next 5YN/A
Revenue 1Y (TTM)10.44%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%5.58%
Revenue Next Year11.12%
Revenue Next 2Y8.56%
Revenue Next 3Y7.75%
Revenue Next 5YN/A
EBIT growth 1Y14.13%
EBIT growth 3Y20.99%
EBIT growth 5Y5.01%
EBIT Next Year133%
EBIT Next 3Y47.68%
EBIT Next 5YN/A
FCF growth 1Y1120.87%
FCF growth 3Y56.55%
FCF growth 5Y2.7%
OCF growth 1Y137.61%
OCF growth 3Y44.47%
OCF growth 5Y6.95%