ARC Document Solutions Inc (ARC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARC - US00191G1031 - Common Stock
3.39 USD
0 (0%)
3.39 USD
0 (0%)
Overall ARC gets a fundamental rating of 4 out of 10. We evaluated ARC against 80 industry peers in the Commercial Services & Supplies industry. ARC has an average financial health and profitability rating. ARC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- ARC had positive earnings in the past year.
- ARC had a positive operating cash flow in the past year.
- Each year in the past 5 years ARC has been profitable.
- In the past 5 years ARC always reported a positive cash flow from operatings.
1.2 Ratios
- ARC has a Return On Assets (1.49%) which is comparable to the rest of the industry.
- ARC has a Return On Equity (3.01%) which is comparable to the rest of the industry.
- ARC has a Return On Invested Capital of 3.76%. This is comparable to the rest of the industry: ARC outperforms 44.05% of its industry peers.
- ARC had an Average Return On Invested Capital over the past 3 years of 4.64%. This is significantly below the industry average of 10.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 3.01% | ||
| ROIC | 3.76% |
ROA(3y)3.03%
ROA(5y)2.34%
ROE(3y)6.17%
ROE(5y)4.96%
ROIC(3y)4.64%
ROIC(5y)4.07%
1.3 Margins
- ARC has a Profit Margin (1.61%) which is in line with its industry peers.
- ARC's Profit Margin has improved in the last couple of years.
- ARC has a Operating Margin (4.78%) which is in line with its industry peers.
- ARC's Operating Margin has improved in the last couple of years.
- ARC's Gross Margin of 33.23% is in line compared to the rest of the industry. ARC outperforms 54.76% of its industry peers.
- In the last couple of years the Gross Margin of ARC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.78% | ||
| PM (TTM) | 1.61% | ||
| GM | 33.23% |
OM growth 3Y14.39%
OM growth 5Y7.5%
PM growth 3Y10.99%
PM growth 5Y5.69%
GM growth 3Y1.52%
GM growth 5Y0.55%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARC is destroying value.
- Compared to 1 year ago, ARC has less shares outstanding
- Compared to 1 year ago, ARC has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.96 indicates that ARC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ARC's Altman-Z score of 1.96 is in line compared to the rest of the industry. ARC outperforms 45.24% of its industry peers.
- The Debt to FCF ratio of ARC is 3.13, which is a good value as it means it would take ARC, 3.13 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.13, ARC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- ARC has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.34, ARC is doing good in the industry, outperforming 63.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.56
WACC6.71%
2.3 Liquidity
- A Current Ratio of 1.49 indicates that ARC should not have too much problems paying its short term obligations.
- ARC has a Current ratio (1.49) which is in line with its industry peers.
- A Quick Ratio of 1.37 indicates that ARC should not have too much problems paying its short term obligations.
- ARC has a Quick ratio of 1.37. This is comparable to the rest of the industry: ARC outperforms 55.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
- ARC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.63%.
- Measured over the past years, ARC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.09% on average per year.
- The Revenue has been growing slightly by 2.86% in the past year.
- Measured over the past years, ARC shows a decrease in Revenue. The Revenue has been decreasing by -6.84% on average per year.
EPS 1Y (TTM)-29.63%
EPS 3Y10.6%
EPS 5Y-1.09%
EPS Q2Q%-100%
Revenue 1Y (TTM)2.86%
Revenue growth 3Y-0.96%
Revenue growth 5Y-6.84%
Sales Q2Q%4.77%
3.2 Future
- Based on estimates for the next years, ARC will show a very negative growth in Earnings Per Share. The EPS will decrease by -18.74% on average per year.
- Based on estimates for the next years, ARC will show a small growth in Revenue. The Revenue will grow by 4.14% on average per year.
EPS Next Y-22.31%
EPS Next 2Y-18.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.63%
Revenue Next 2Y4.14%
Revenue Next 3YN/A
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 decreasing.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 17.84 indicates a rather expensive valuation of ARC.
- Based on the Price/Earnings ratio, ARC is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, ARC is valued a bit cheaper.
- ARC is valuated rather expensively with a Price/Forward Earnings ratio of 19.74.
- ARC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARC is cheaper than 71.43% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.30. ARC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 19.74 |
4.2 Price Multiples
- ARC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARC is cheaper than 92.86% of the companies in the same industry.
- 94.05% of the companies in the same industry are more expensive than ARC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
- A cheap valuation may be justified as ARC's earnings are expected to decrease with -18.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.90%, ARC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.83, ARC pays a better dividend. On top of this ARC pays more dividend than 100.00% of the companies listed in the same industry.
- ARC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.9% |
5.2 History
- ARC has been paying a dividend for over 5 years, so it has already some track record.
- ARC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 181.67% of the earnings are spent on dividend by ARC. This is not a sustainable payout ratio.
DP181.67%
EPS Next 2Y-18.74%
EPS Next 3YN/A
3.39
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)11-04 2024-11-04/bmo
Earnings (Next)N/A N/A
Inst Owners49.24%
Inst Owner Change0%
Ins Owners1.73%
Ins Owner Change0%
Market Cap146.65M
Revenue(TTM)289.23M
Net Income(TTM)4.66M
Analysts84
Price Target4.44 (30.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.9% |
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP181.67%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-47.19%
Min EPS beat(2)-100%
Max EPS beat(2)5.61%
EPS beat(4)2
Avg EPS beat(4)-18.09%
Min EPS beat(4)-100%
Max EPS beat(4)32.01%
EPS beat(8)3
Avg EPS beat(8)-9.54%
EPS beat(12)6
Avg EPS beat(12)-0.4%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.7%
Min Revenue beat(2)1.39%
Max Revenue beat(2)2%
Revenue beat(4)4
Avg Revenue beat(4)1.48%
Min Revenue beat(4)0.84%
Max Revenue beat(4)2%
Revenue beat(8)4
Avg Revenue beat(8)-0.7%
Revenue beat(12)7
Avg Revenue beat(12)0.21%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-18.69%
EPS NQ rev (1m)-66.67%
EPS NQ rev (3m)-66.67%
EPS NY rev (1m)-25.93%
EPS NY rev (3m)-25.93%
Revenue NQ rev (1m)4.13%
Revenue NQ rev (3m)4.13%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 19.74 | ||
| P/S | 0.51 | ||
| P/FCF | 7.76 | ||
| P/OCF | 4.46 | ||
| P/B | 0.95 | ||
| P/tB | 4.33 | ||
| EV/EBITDA | 5.15 |
EPS(TTM)0.19
EY5.6%
EPS(NY)0.17
Fwd EY5.06%
FCF(TTM)0.44
FCFY12.89%
OCF(TTM)0.76
OCFY22.43%
SpS6.69
BVpS3.58
TBVpS0.78
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 3.01% | ||
| ROCE | 5.79% | ||
| ROIC | 3.76% | ||
| ROICexc | 4.79% | ||
| ROICexgc | 13.53% | ||
| OM | 4.78% | ||
| PM (TTM) | 1.61% | ||
| GM | 33.23% | ||
| FCFM | 6.54% |
ROA(3y)3.03%
ROA(5y)2.34%
ROE(3y)6.17%
ROE(5y)4.96%
ROIC(3y)4.64%
ROIC(5y)4.07%
ROICexc(3y)6.02%
ROICexc(5y)5.13%
ROICexgc(3y)17.47%
ROICexgc(5y)13.75%
ROCE(3y)7.15%
ROCE(5y)6.28%
ROICexgc growth 3Y29.73%
ROICexgc growth 5Y10.98%
ROICexc growth 3Y19.41%
ROICexc growth 5Y4.78%
OM growth 3Y14.39%
OM growth 5Y7.5%
PM growth 3Y10.99%
PM growth 5Y5.69%
GM growth 3Y1.52%
GM growth 5Y0.55%
F-Score5
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 86.39% | ||
| Cap/Sales | 4.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.63% | ||
| Profit Quality | 405.82% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 1.96 |
F-Score5
WACC6.71%
ROIC/WACC0.56
Cap/Depr(3y)34.84%
Cap/Depr(5y)33.2%
Cap/Sales(3y)2.4%
Cap/Sales(5y)2.56%
Profit Quality(3y)316.5%
Profit Quality(5y)611.06%
High Growth Momentum
Growth
EPS 1Y (TTM)-29.63%
EPS 3Y10.6%
EPS 5Y-1.09%
EPS Q2Q%-100%
EPS Next Y-22.31%
EPS Next 2Y-18.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.86%
Revenue growth 3Y-0.96%
Revenue growth 5Y-6.84%
Sales Q2Q%4.77%
Revenue Next Year4.63%
Revenue Next 2Y4.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-25.32%
EBIT growth 3Y13.28%
EBIT growth 5Y0.14%
EBIT Next Year74.29%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-35.91%
FCF growth 3Y-18.72%
FCF growth 5Y-8.42%
OCF growth 1Y-3.26%
OCF growth 3Y-12.44%
OCF growth 5Y-7.83%
ARC Document Solutions Inc / ARC FAQ
Can you provide the ChartMill fundamental rating for ARC Document Solutions Inc?
ChartMill assigns a fundamental rating of 5 / 10 to ARC.
What is the valuation status for ARC stock?
ChartMill assigns a valuation rating of 4 / 10 to ARC Document Solutions Inc (ARC). This can be considered as Fairly Valued.
What is the profitability of ARC stock?
ARC Document Solutions Inc (ARC) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for ARC stock?
The Earnings per Share (EPS) of ARC Document Solutions Inc (ARC) is expected to decline by -22.31% in the next year.
Can you provide the dividend sustainability for ARC stock?
The dividend rating of ARC Document Solutions Inc (ARC) is 5 / 10 and the dividend payout ratio is 181.67%.