ARC Document Solutions Inc (ARC) Stock Fundamental Analysis
USA - NYSE:ARC - US00191G1031 - Common Stock
3.39 USD
0 (0%)
3.39 USD
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ARC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of ARC get a neutral evaluation. Nothing too spectacular is happening here. 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
In the past year ARC was profitable.
In the past year ARC had a positive cash flow from operations.
In the past 5 years ARC has always been profitable.
ARC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARC has a Return On Assets (1.49%) which is comparable to the rest of the industry.
With a Return On Equity value of 3.01%, ARC perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
ARC has a Return On Invested Capital (3.76%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARC is significantly below the industry average of 10.60%.
| 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 of 1.61%. This is comparable to the rest of the industry: ARC outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of ARC has grown nicely.
ARC has a Operating Margin of 4.78%. This is comparable to the rest of the industry: ARC outperforms 46.43% of its industry peers.
ARC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 33.23%, ARC perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
ARC's Gross Margin has been stable in the last couple of years.
| 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
ARC has less shares outstanding than it did 5 years ago.
ARC has a better debt/assets ratio than last year.
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 has a Altman-Z score of 1.96. This is comparable 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.
With a decent Debt to FCF ratio value of 3.13, ARC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that ARC is not too dependend on debt financing.
ARC has a Debt to Equity ratio of 0.34. This is in the better half of the industry: ARC outperforms 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.56
WACC6.71%
2.3 Liquidity
ARC has a Current Ratio of 1.49. This is a normal value and indicates that ARC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.49, ARC is in line with its industry, outperforming 46.43% of the companies in the same industry.
ARC has a Quick Ratio of 1.37. This is a normal value and indicates that ARC is financially healthy and should not expect problems in meeting its short term obligations.
ARC's Quick ratio of 1.37 is in line compared 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
The earnings per share for ARC have decreased strongly by -29.63% in the last year.
The Earnings Per Share has been decreasing by -1.09% on average over the past years.
Looking at the last year, ARC shows a small growth in Revenue. The Revenue has grown by 2.86% in the last year.
The Revenue has been decreasing by -6.84% on average over the past years.
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.
The Revenue is expected to grow by 4.14% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ARC is valuated rather expensively with a Price/Earnings ratio of 17.84.
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.
The average S&P500 Price/Earnings ratio is at 27.30. ARC is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.74, ARC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ARC is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
ARC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| 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.
Based on the Price/Free Cash Flow ratio, ARC is valued cheaply inside the industry as 94.05% of the companies are valued more expensively.
| 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
ARC has a Yearly Dividend Yield of 5.90%, which is a nice return.
ARC's Dividend Yield is rather good when compared to the industry average which is at 2.27. ARC pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, ARC pays a better dividend.
| 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)
Earnings (Next)
Inst Owners49.24%
Inst Owner Change0%
Ins Owners1.73%
Ins Owner Change0%
Market Cap146.65M
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
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%
ROICexcg growth 3Y29.73%
ROICexcg 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%