ARC Document Solutions Inc (ARC) Stock Fundamental Analysis
USA - NYSE:ARC - US00191G1031 - Common Stock
3.39 USD
0 (0%)
3.39 USD
0 (0%)
Taking everything into account, ARC scores 5 out of 10 in our fundamental rating. ARC was compared to 82 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 it does not seem to be growing.
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
The Return On Assets of ARC (1.49%) 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.
Measured over the past 3 years, the Average Return On Invested Capital for ARC is significantly below the industry average of 10.38%.
| 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
With a Profit Margin value of 1.61%, ARC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
ARC's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of ARC has grown nicely.
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.
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
ARC 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, ARC has less shares outstanding
The number of shares outstanding for ARC has been reduced compared to 5 years ago.
Compared to 1 year ago, ARC has an improved debt to assets ratio.
2.2 Solvency
ARC has an Altman-Z score of 1.96. This is not the best score and indicates that ARC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ARC (1.96) is comparable to the rest of the industry.
ARC has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as ARC would need 3.13 years to pay back of all of its debts.
ARC's Debt to FCF ratio of 3.13 is fine compared to the rest of the industry. ARC outperforms 75.00% of its industry peers.
ARC has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ARC (0.34) is better than 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.
ARC has a Current ratio (1.49) which is comparable to the rest of the industry.
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 (1.37) which is comparable to the rest of the industry.
| 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.
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.
ARC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.86%.
ARC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.84% yearly.
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
ARC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.74% yearly.
ARC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.14% yearly.
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.
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
With a Price/Earnings ratio of 17.84, ARC is valued on the expensive side.
73.81% of the companies in the same industry are more expensive than ARC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ARC to the average of the S&P500 Index (27.08), we can say ARC is valued slightly cheaper.
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.
When comparing the Price/Forward Earnings ratio of ARC to the average of the S&P500 Index (23.09), we can say ARC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 19.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARC is valued cheaper than 92.86% of the companies in the same industry.
ARC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARC is cheaper than 94.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
ARC's earnings are expected to decrease with -18.74% in the coming years. This may justify a cheaper valuation.
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 2.44, 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 2.30.
| 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
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 of ARC Document Solutions Inc (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.
What is the valuation of ARC Document Solutions Inc based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARC Document Solutions Inc (ARC) is 17.84 and the Price/Book (PB) ratio is 0.95.
How sustainable is the dividend of ARC Document Solutions Inc (ARC) stock?
The dividend rating of ARC Document Solutions Inc (ARC) is 5 / 10 and the dividend payout ratio is 181.67%.