ARCOSA INC (ACA) Stock Fundamental Analysis
NYSE:ACA - US0396531008 - Common Stock
98.88 USD
+0.45 (+0.46%)
98.88 USD
0 (0%)
ACA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 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.
ACA had a positive operating cash flow in the past year.
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
With a Return On Assets value of 1.84%, ACA perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
With a Return On Equity value of 3.68%, ACA is not doing good in the industry: 63.27% of the companies in the same industry are doing better.
ACA's Return On Invested Capital of 4.09% is in line compared to the rest of the industry. ACA outperforms 42.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACA is significantly below the industry average of 14.54%.
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 55.10% of its industry peers.
ACA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.93%, ACA is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
ACA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 20.82%, ACA is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
ACA's Gross Margin has been stable in the last couple of years.
| 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.
ACA has more shares outstanding than it did 1 year ago.
ACA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.22 indicates that ACA is not a great score, but indicates only limited risk for bankruptcy at the moment.
ACA's Altman-Z score of 2.22 is in line compared to the rest of the industry. ACA outperforms 46.94% 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.
Looking at the Debt to FCF ratio, with a value of 5.72, ACA is in line with its industry, outperforming 53.06% of the companies in the same industry.
ACA has a Debt/Equity ratio of 0.67. This is a neutral value indicating ACA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, ACA is in line with its industry, outperforming 53.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.38
WACC10.66%
2.3 Liquidity
A Current Ratio of 2.12 indicates that ACA has no problem at all paying its short term obligations.
ACA has a Current ratio of 2.12. This is amongst the best in the industry. ACA outperforms 91.84% of its industry peers.
ACA has a Quick Ratio of 1.35. This is a normal value and indicates that ACA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ACA (1.35) is better than 61.22% 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%.
ACA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.16% yearly.
The Revenue has grown by 9.78% in the past year. This is quite good.
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)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 Y33.55%
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.
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 31.59 indicates a quite expensive valuation of ACA.
ACA's Price/Earnings ratio is in line with the industry average.
ACA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.08.
With a Price/Forward Earnings ratio of 20.67, ACA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ACA is valued a bit cheaper than the industry average as 79.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, ACA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.59 | ||
| Fwd PE | 20.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACA is valued a bit cheaper than 71.43% of the companies in the same industry.
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 | 16.48 | ||
| EV/EBITDA | 13.91 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ACA's earnings are expected to grow with 22.40% in the coming years.
PEG (NY)0.94
PEG (5Y)6.12
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.
ACA's Dividend Yield is a higher than the industry average which is at 1.55.
Compared to an average S&P500 Dividend Yield of 2.34, 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
10.63% of the earnings are spent on dividend by ACA. This is a low number and sustainable payout ratio.
DP10.63%
EPS Next 2Y26.07%
EPS Next 3Y22.4%
98.88
+0.45 (+0.46%)
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 Change8.25%
Market Cap4.85B
Analysts86
Price Target118.32 (19.66%)
Short Float %2.44%
Short Ratio3.88
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)4.66%
EPS NQ rev (3m)-8.88%
EPS NY rev (1m)4.46%
EPS NY rev (3m)4.03%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.59 | ||
| Fwd PE | 20.67 | ||
| P/S | 1.81 | ||
| P/FCF | 16.48 | ||
| P/OCF | 10.93 | ||
| P/B | 1.93 | ||
| P/tB | 5.77 | ||
| EV/EBITDA | 13.91 |
EPS(TTM)3.13
EY3.17%
EPS(NY)4.78
Fwd EY4.84%
FCF(TTM)6
FCFY6.07%
OCF(TTM)9.05
OCFY9.15%
SpS54.56
BVpS51.15
TBVpS17.14
PEG (NY)0.94
PEG (5Y)6.12
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 | 2.22 |
F-Score5
WACC10.66%
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 Y33.55%
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%