ARCOSA INC (ACA) Stock Fundamental Analysis
USA - NYSE:ACA - US0396531008 - Common Stock
93.24 USD
+0.82 (+0.89%)
93.24 USD
0 (0%)
Taking everything into account, ACA scores 5 out of 10 in our fundamental rating. ACA was compared to 55 industry peers in the Construction & Engineering industry. ACA has only an average score on both its financial health and profitability. 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.
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
ACA has a Return On Assets (1.84%) which is in line with its industry peers.
With a Return On Equity value of 3.68%, ACA is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 4.09%, ACA perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACA is significantly below the industry average of 17.10%.
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
With a Profit Margin value of 3.45%, ACA perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Profit Margin of ACA has declined.
Looking at the Operating Margin, with a value of 8.93%, ACA is in the better half of the industry, outperforming 68.52% of the companies in the same industry.
In the last couple of years the Operating Margin of ACA has declined.
ACA has a better Gross Margin (20.82%) than 64.81% 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
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
Compared to 5 years ago, ACA has more shares outstanding
Compared to 1 year ago, ACA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.15 indicates that ACA is not a great score, but indicates only limited risk for bankruptcy at the moment.
ACA has a Altman-Z score of 2.15. This is comparable to the rest of the industry: ACA outperforms 40.74% of its industry peers.
ACA has a debt to FCF ratio of 5.72. This is a neutral value as ACA would need 5.72 years to pay back of all of its debts.
ACA has a Debt to FCF ratio (5.72) which is in line with 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 51.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.38
WACC10.78%
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.
ACA's Current ratio of 2.12 is amongst the best of the industry. ACA outperforms 88.89% of its industry peers.
A Quick Ratio of 1.35 indicates that ACA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.35, ACA is doing good in the industry, outperforming 64.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.62% over the past 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 9.78% 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)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
The Earnings Per Share is expected to grow by 22.40% on average over the next years. This is a very strong growth
Based on estimates for the next years, ACA will show a small growth in Revenue. The Revenue will grow by 6.56% on average per year.
EPS Next Y33.6%
EPS Next 2Y26.07%
EPS Next 3Y22.4%
EPS Next 5YN/A
Revenue Next Year10.2%
Revenue Next 2Y8.19%
Revenue Next 3Y6.56%
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.
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
With a Price/Earnings ratio of 29.79, ACA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ACA is valued a bit cheaper than 66.67% of the companies in the same industry.
ACA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.49, ACA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ACA is valued cheaply inside the industry as 85.19% 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 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.79 | ||
| Fwd PE | 19.49 |
4.2 Price Multiples
ACA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACA is cheaper than 79.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACA indicates a somewhat cheap valuation: ACA is cheaper than 77.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.54 | ||
| EV/EBITDA | 13.26 |
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)0.89
PEG (5Y)5.77
EPS Next 2Y26.07%
EPS Next 3Y22.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.22%, ACA is not a good candidate for dividend investing.
ACA's Dividend Yield is rather good when compared to the industry average which is at 1.65. ACA pays more dividend than 81.48% of the companies in the same industry.
With a Dividend Yield of 0.22, ACA pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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%
93.24
+0.82 (+0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.34%
Inst Owner Change0%
Ins Owners1.8%
Ins Owner Change6.34%
Market Cap4.57B
Analysts86
Price Target118.32 (26.9%)
Short Float %2.51%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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)0%
PT rev (3m)3.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.04%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.79 | ||
| Fwd PE | 19.49 | ||
| P/S | 1.71 | ||
| P/FCF | 15.54 | ||
| P/OCF | 10.31 | ||
| P/B | 1.82 | ||
| P/tB | 5.44 | ||
| EV/EBITDA | 13.26 |
EPS(TTM)3.13
EY3.36%
EPS(NY)4.78
Fwd EY5.13%
FCF(TTM)6
FCFY6.43%
OCF(TTM)9.05
OCFY9.7%
SpS54.56
BVpS51.15
TBVpS17.14
PEG (NY)0.89
PEG (5Y)5.77
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 | 2.15 |
F-Score5
WACC10.78%
ROIC/WACC0.38
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 Y33.6%
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 Year10.2%
Revenue Next 2Y8.19%
Revenue Next 3Y6.56%
Revenue Next 5YN/A
EBIT growth 1Y27.67%
EBIT growth 3Y20.99%
EBIT growth 5Y5.01%
EBIT Next Year133.35%
EBIT Next 3Y37.6%
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%