ARCO PLATFORM LTD - CLASS A (ARCE) Fundamental Analysis & Valuation

NASDAQ:ARCE • KYG045531061

Current stock price

13.98 USD
-0.01 (-0.07%)
At close:
13.99 USD
+0.01 (+0.07%)
After Hours:

This ARCE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. ARCE Profitability Analysis

1.1 Basic Checks

  • ARCE had negative earnings in the past year.
  • ARCE had a negative operating cash flow in the past year.
ARCE Yearly Net Income VS EBIT VS OCF VS FCFARCE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M -200M

1.2 Ratios

  • ARCE has a Return On Assets (-0.52%) which is comparable to the rest of the industry.
  • ARCE has a Return On Equity (-1.22%) which is comparable to the rest of the industry.
  • The Return On Invested Capital of ARCE (3.15%) is better than 66.67% of its industry peers.
  • ARCE had an Average Return On Invested Capital over the past 3 years of 2.64%. This is significantly below the industry average of 10.75%.
  • The last Return On Invested Capital (3.15%) for ARCE is above the 3 year average (2.64%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.52%
ROE -1.22%
ROIC 3.15%
ROA(3y)-0.53%
ROA(5y)-1.61%
ROE(3y)-1.86%
ROE(5y)-2.77%
ROIC(3y)2.64%
ROIC(5y)2.4%
ARCE Yearly ROA, ROE, ROICARCE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 20 30

1.3 Margins

  • In the last couple of years the Profit Margin of ARCE has declined.
  • The Operating Margin of ARCE (13.91%) is better than 78.79% of its industry peers.
  • ARCE's Operating Margin has declined in the last couple of years.
  • With a decent Gross Margin value of 66.71%, ARCE is doing good in the industry, outperforming 75.76% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ARCE has remained more or less at the same level.
Industry RankSector Rank
OM 13.91%
PM (TTM) N/A
GM 66.71%
OM growth 3Y17.55%
OM growth 5Y-11.49%
PM growth 3YN/A
PM growth 5Y-34.26%
GM growth 3Y-3.35%
GM growth 5Y-1.14%
ARCE Yearly Profit, Operating, Gross MarginsARCE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 20 -20 40 60

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3

2. ARCE Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARCE is destroying value.
  • ARCE has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, ARCE has a worse debt to assets ratio.
ARCE Yearly Shares OutstandingARCE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M 50M
ARCE Yearly Total Debt VS Total AssetsARCE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

2.2 Solvency

  • An Altman-Z score of 1.84 indicates that ARCE is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • ARCE has a Altman-Z score of 1.84. This is in the better half of the industry: ARCE outperforms 63.64% of its industry peers.
  • A Debt/Equity ratio of 0.67 indicates that ARCE is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.67, ARCE is doing worse than 65.15% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Altman-Z 1.84
ROIC/WACC0.23
WACC13.98%
ARCE Yearly LT Debt VS Equity VS FCFARCE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 1.26 indicates that ARCE should not have too much problems paying its short term obligations.
  • ARCE has a Current ratio (1.26) which is in line with its industry peers.
  • A Quick Ratio of 1.06 indicates that ARCE should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.06, ARCE is doing worse than 62.12% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.26
Quick Ratio 1.06
ARCE Yearly Current Assets VS Current LiabilitesARCE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. ARCE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 75.29% over the past year.
  • ARCE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.84% yearly.
  • ARCE shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.47%.
  • The Revenue has been growing by 48.68% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)75.29%
EPS 3YN/A
EPS 5Y-4.84%
EPS Q2Q%-366.67%
Revenue 1Y (TTM)30.47%
Revenue growth 3Y45.8%
Revenue growth 5Y48.68%
Sales Q2Q%14.29%

3.2 Future

  • The Earnings Per Share is expected to grow by 82.40% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 26.47% on average over the next years. This is a very strong growth
EPS Next Y356.19%
EPS Next 2Y103.64%
EPS Next 3Y82.4%
EPS Next 5YN/A
Revenue Next Year38.52%
Revenue Next 2Y30.81%
Revenue Next 3Y26.47%
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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
ARCE Yearly Revenue VS EstimatesARCE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
ARCE Yearly EPS VS EstimatesARCE Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2

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3

4. ARCE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for ARCE. In the last year negative earnings were reported.
  • Based on the Price/Forward Earnings ratio of 37.42, the valuation of ARCE can be described as expensive.
  • ARCE's Price/Forward Earnings is on the same level as the industry average.
  • ARCE is valuated expensively when we compare the Price/Forward Earnings ratio to 22.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 37.42
ARCE Price Earnings VS Forward Price EarningsARCE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -50 -100

4.2 Price Multiples

  • ARCE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARCE is cheaper than 72.73% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.16
ARCE Per share dataARCE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

4.3 Compensation for Growth

  • ARCE's 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 ARCE's earnings are expected to grow with 82.40% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y103.64%
EPS Next 3Y82.4%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ARCE Dividend Analysis

5.1 Amount

  • No dividends for ARCE!.
Industry RankSector Rank
Dividend Yield N/A

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ARCE Fundamentals: All Metrics, Ratios and Statistics

ARCO PLATFORM LTD - CLASS A

NASDAQ:ARCE (12/6/2023, 8:00:00 PM)

After market: 13.99 +0.01 (+0.07%)

13.98

-0.01 (-0.07%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-28
Earnings (Next)03-28
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap927.43M
Revenue(TTM)1.94B
Net Income(TTM)-33.30M
Analysts78
Price Target17.17 (22.82%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)119.15%
Min EPS beat(2)-149.55%
Max EPS beat(2)387.86%
EPS beat(4)2
Avg EPS beat(4)43.33%
Min EPS beat(4)-149.55%
Max EPS beat(4)387.86%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.93%
Min Revenue beat(2)-6.43%
Max Revenue beat(2)-1.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)8.78%
Revenue beat(8)3
Avg Revenue beat(8)1.1%
Revenue beat(12)4
Avg Revenue beat(12)-0.35%
Revenue beat(16)7
Avg Revenue beat(16)0.96%
PT rev (1m)0%
PT rev (3m)2.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.82%
EPS NY rev (1m)-12.55%
EPS NY rev (3m)-40%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.36%
Revenue NY rev (1m)6.89%
Revenue NY rev (3m)6.18%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 37.42
P/S 2.36
P/FCF N/A
P/OCF N/A
P/B 1.68
P/tB N/A
EV/EBITDA 10.16
EPS(TTM)-0.13
EYN/A
EPS(NY)0.37
Fwd EY2.67%
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)-0.12
OCFYN/A
SpS5.92
BVpS8.33
TBVpS-3.45
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -0.52%
ROE -1.22%
ROCE 5.42%
ROIC 3.15%
ROICexc 3.52%
ROICexgc 26.32%
OM 13.91%
PM (TTM) N/A
GM 66.71%
FCFM N/A
ROA(3y)-0.53%
ROA(5y)-1.61%
ROE(3y)-1.86%
ROE(5y)-2.77%
ROIC(3y)2.64%
ROIC(5y)2.4%
ROICexc(3y)3.39%
ROICexc(5y)3.94%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)4.53%
ROCE(5y)4.12%
ROICexgc growth 3Y54.57%
ROICexgc growth 5Y-1.3%
ROICexc growth 3Y43.62%
ROICexc growth 5Y-21.27%
OM growth 3Y17.55%
OM growth 5Y-11.49%
PM growth 3YN/A
PM growth 5Y-34.26%
GM growth 3Y-3.35%
GM growth 5Y-1.14%
F-Score4
Asset Turnover0.3
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Debt/EBITDA 3.14
Cap/Depr 49.81%
Cap/Sales 8%
Interest Coverage 0.72
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.26
Quick Ratio 1.06
Altman-Z 1.84
F-Score4
WACC13.98%
ROIC/WACC0.23
Cap/Depr(3y)85.95%
Cap/Depr(5y)110.99%
Cap/Sales(3y)12.68%
Cap/Sales(5y)11.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)75.29%
EPS 3YN/A
EPS 5Y-4.84%
EPS Q2Q%-366.67%
EPS Next Y356.19%
EPS Next 2Y103.64%
EPS Next 3Y82.4%
EPS Next 5YN/A
Revenue 1Y (TTM)30.47%
Revenue growth 3Y45.8%
Revenue growth 5Y48.68%
Sales Q2Q%14.29%
Revenue Next Year38.52%
Revenue Next 2Y30.81%
Revenue Next 3Y26.47%
Revenue Next 5YN/A
EBIT growth 1Y53.59%
EBIT growth 3Y71.39%
EBIT growth 5Y31.59%
EBIT Next Year166.32%
EBIT Next 3Y58.24%
EBIT Next 5YN/A
FCF growth 1Y-453.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-138.17%
OCF growth 3YN/A
OCF growth 5YN/A

ARCO PLATFORM LTD - CLASS A / ARCE Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ARCO PLATFORM LTD - CLASS A (ARCE) stock?

ChartMill assigns a fundamental rating of 4 / 10 to ARCE.


What is the valuation status of ARCO PLATFORM LTD - CLASS A (ARCE) stock?

ChartMill assigns a valuation rating of 3 / 10 to ARCO PLATFORM LTD - CLASS A (ARCE). This can be considered as Overvalued.


How profitable is ARCO PLATFORM LTD - CLASS A (ARCE) stock?

ARCO PLATFORM LTD - CLASS A (ARCE) has a profitability rating of 3 / 10.


Can you provide the financial health for ARCE stock?

The financial health rating of ARCO PLATFORM LTD - CLASS A (ARCE) is 3 / 10.


How sustainable is the dividend of ARCO PLATFORM LTD - CLASS A (ARCE) stock?

The dividend rating of ARCO PLATFORM LTD - CLASS A (ARCE) is 0 / 10 and the dividend payout ratio is 0%.