ARCOSA INC (ACA) Stock Fundamental Analysis
NYSE:ACA - New York Stock Exchange, Inc. - US0396531008 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ACA. ACA was compared to 52 industry peers in the Construction & Engineering industry. There are concerns on the financial health of ACA while its profitability can be described as average. ACA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACA was profitable.
ACA had a positive operating cash flow in the past year.
In the past 5 years ACA has always been profitable.
Each year in the past 5 years ACA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.58%, ACA perfoms like the industry average, outperforming 44.23% of the companies in the same industry.
ACA has a Return On Equity (3.18%) which is comparable to the rest of the industry.
ACA has a Return On Invested Capital of 3.54%. This is comparable to the rest of the industry: ACA outperforms 42.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACA is significantly below the industry average of 16.60%.
| 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 has a Profit Margin (3.00%) which is in line with its industry peers.
ACA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.85%, ACA is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
ACA's Operating Margin has declined in the last couple of years.
ACA has a better Gross Margin (20.32%) than 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 | 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.
Compared to 1 year ago, ACA has more shares outstanding
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 2.02 indicates that ACA is not a great score, but indicates only limited risk for bankruptcy at the moment.
ACA's Altman-Z score of 2.02 is in line compared to the rest of the industry. ACA outperforms 46.15% of its industry peers.
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's Debt to FCF ratio of 6.70 is in line compared to the rest of the industry. ACA outperforms 55.77% of 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.
ACA has a Debt to Equity ratio of 0.68. This is comparable to the rest of the industry: ACA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.7 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.37
WACC9.65%
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.
With an excellent Current ratio value of 1.98, ACA belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that ACA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.27, ACA perfoms like the industry average, outperforming 57.69% of the companies in the same 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%.
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.
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)-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
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 30.99 indicates a quite expensive valuation of ACA.
ACA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. ACA is around the same levels.
The Price/Forward Earnings ratio is 18.26, which indicates a rather expensive current valuation of ACA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACA indicates a somewhat cheap valuation: ACA is cheaper than 73.08% of the companies listed in the same industry.
ACA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.99 | ||
| Fwd PE | 18.26 |
4.2 Price Multiples
69.23% 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 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.66 | ||
| EV/EBITDA | 13.92 |
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)1.09
PEG (5Y)6
EPS Next 2Y24.97%
EPS Next 3Y22.44%
5. Dividend
5.1 Amount
With a yearly dividend of 0.23%, ACA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.81, ACA pays a better dividend. On top of this ACA pays more dividend than 80.77% 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 2.40.
| 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%
85.83
-1.88 (-2.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.6%
Inst Owner Change7.69%
Ins Owners1.85%
Ins Owner Change11.66%
Market Cap4.19B
Analysts86
Price Target114.07 (32.9%)
Short Float %2.12%
Short Ratio3.39
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)-4.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.99 | ||
| Fwd PE | 18.26 | ||
| P/S | 1.61 | ||
| P/FCF | 16.66 | ||
| P/OCF | 9.96 | ||
| P/B | 1.71 | ||
| P/tB | 5.37 | ||
| EV/EBITDA | 13.92 |
EPS(TTM)2.77
EY3.23%
EPS(NY)4.7
Fwd EY5.48%
FCF(TTM)5.15
FCFY6%
OCF(TTM)8.62
OCFY10.04%
SpS53.32
BVpS50.28
TBVpS15.98
PEG (NY)1.09
PEG (5Y)6
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 | 2.02 |
F-Score5
WACC9.65%
ROIC/WACC0.37
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 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%