ARCOSA INC (ACA) Stock Fundamental Analysis
NYSE:ACA - New York Stock Exchange, Inc. - US0396531008 - Common Stock - Currency: USD
Taking everything into account, ACA scores 4 out of 10 in our fundamental rating. ACA was compared to 49 industry peers in the Construction & Engineering industry. While ACA is still in line with the averages on profitability rating, there are concerns on its financial health. ACA has a decent growth rate and is not valued too expensively.
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.
ACA had positive earnings in each of the past 5 years.
In the past 5 years ACA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.58%, ACA is in line with its industry, outperforming 44.90% of the companies in the same industry.
ACA has a Return On Equity of 3.18%. This is comparable to the rest of the industry: ACA outperforms 40.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.54%, ACA is doing worse than 61.22% of the companies in the same industry.
ACA had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 16.70%.
| 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
Looking at the Profit Margin, with a value of 3.00%, ACA is in line with its industry, outperforming 55.10% of the companies in the same industry.
In the last couple of years the Profit Margin of ACA has declined.
ACA's Operating Margin of 7.85% is fine compared to the rest of the industry. ACA outperforms 69.39% of its industry peers.
In the last couple of years the Operating Margin of ACA has declined.
With a decent Gross Margin value of 20.32%, ACA is doing good in the industry, outperforming 63.27% of the companies in the same industry.
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 | 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
ACA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
ACA has an Altman-Z score of 1.99. 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.
ACA has a Altman-Z score (1.99) which is comparable to the rest of the industry.
The Debt to FCF ratio of ACA is 6.70, which is on the high side as it means it would take ACA, 6.70 years of fcf income to pay off all of its debts.
ACA has a Debt to FCF ratio (6.70) which is in line with its industry peers.
A Debt/Equity ratio of 0.68 indicates that 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 | 1.99 |
ROIC/WACC0.35
WACC10.12%
2.3 Liquidity
A Current Ratio of 1.98 indicates that ACA should not have too much problems paying its short term obligations.
The Current ratio of ACA (1.98) is better than 91.84% of its industry peers.
ACA has a Quick Ratio of 1.27. 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 (1.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The earnings per share for ACA have decreased by -4.48% in the last year.
Measured over the past 5 years, ACA shows a small growth in Earnings Per Share. The EPS has been growing by 5.16% on average per year.
The Revenue has grown by 10.44% in the past year. This is quite good.
The Revenue has been growing by 8.15% on average over the past years. This is quite good.
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.
ACA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.75% yearly.
EPS Next Y27.84%
EPS Next 2Y24.75%
EPS Next 3Y22.44%
EPS Next 5YN/A
Revenue Next Year11.04%
Revenue Next 2Y8.53%
Revenue Next 3Y7.75%
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.
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
A Price/Earnings ratio of 30.24 indicates a quite expensive valuation of ACA.
Compared to the rest of the industry, the Price/Earnings ratio of ACA indicates a somewhat cheap valuation: ACA is cheaper than 61.22% of the companies listed in the same industry.
ACA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.88, which indicates a rather expensive current valuation of ACA.
77.55% of the companies in the same industry are more expensive than ACA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.42. ACA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.24 | ||
| Fwd PE | 17.88 |
4.2 Price Multiples
69.39% of the companies in the same industry are more expensive than ACA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ACA is valued a bit cheaper than the industry average as 77.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.26 | ||
| EV/EBITDA | 13.67 |
4.3 Compensation for Growth
ACA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ACA's earnings are expected to grow with 22.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)5.86
EPS Next 2Y24.75%
EPS Next 3Y22.44%
5. Dividend
5.1 Amount
ACA has a yearly dividend return of 0.23%, which is pretty low.
ACA's Dividend Yield is a higher than the industry average which is at 1.62.
Compared to an average S&P500 Dividend Yield of 2.40, ACA's dividend is way lower than the S&P500 average.
| 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
ACA pays out 12.55% of its income as dividend. This is a sustainable payout ratio.
DP12.55%
EPS Next 2Y24.75%
EPS Next 3Y22.44%
83.77
+0.11 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.6%
Inst Owner Change1.71%
Ins Owners1.85%
Ins Owner Change10.95%
Market Cap4.09B
Analysts86
Price Target114.07 (36.17%)
Short Float %2.65%
Short Ratio5.06
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)0%
EPS NQ rev (1m)-2.66%
EPS NQ rev (3m)-5.58%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)3.53%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.24 | ||
| Fwd PE | 17.88 | ||
| P/S | 1.57 | ||
| P/FCF | 16.26 | ||
| P/OCF | 9.72 | ||
| P/B | 1.67 | ||
| P/tB | 5.24 | ||
| EV/EBITDA | 13.67 |
EPS(TTM)2.77
EY3.31%
EPS(NY)4.68
Fwd EY5.59%
FCF(TTM)5.15
FCFY6.15%
OCF(TTM)8.62
OCFY10.29%
SpS53.32
BVpS50.28
TBVpS15.98
PEG (NY)1.09
PEG (5Y)5.86
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 | 1.99 |
F-Score5
WACC10.12%
ROIC/WACC0.35
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 Y27.84%
EPS Next 2Y24.75%
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 Year11.04%
Revenue Next 2Y8.53%
Revenue Next 3Y7.75%
Revenue Next 5YN/A
EBIT growth 1Y14.13%
EBIT growth 3Y20.99%
EBIT growth 5Y5.01%
EBIT Next Year134.84%
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%