ARCO PLATFORM LTD - CLASS A (ARCE) Stock Fundamental Analysis

NASDAQ:ARCE • KYG045531061

13.98 USD
-0.01 (-0.07%)
At close: Dec 6, 2023
13.99 USD
+0.01 (+0.07%)
After Hours: 12/6/2023, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, ARCE scores 4 out of 10 in our fundamental rating. ARCE was compared to 75 industry peers in the Diversified Consumer Services industry. ARCE may be in some trouble as it scores bad on both profitability and health. ARCE shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • ARCE had negative earnings in the past year.
  • In the past year ARCE has reported a negative cash flow from operations.
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 in line with its industry peers.
  • ARCE has a Return On Equity of -1.22%. This is comparable to the rest of the industry: ARCE outperforms 56.06% of its industry peers.
  • ARCE's Return On Invested Capital of 3.15% is fine compared to the rest of the industry. ARCE outperforms 66.67% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ARCE is significantly below the industry average of 11.01%.
  • 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

  • ARCE's Profit Margin has declined in the last couple of years.
  • The Operating Margin of ARCE (13.91%) is better than 78.79% of its industry peers.
  • In the last couple of years the Operating Margin of ARCE has declined.
  • Looking at the Gross Margin, with a value of 66.71%, ARCE is in the better half of 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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • ARCE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • ARCE has about the same amout of shares outstanding than it did 1 year ago.
  • The debt/assets ratio for ARCE is higher compared to a year ago.
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

  • ARCE has an Altman-Z score of 1.84. This is not the best score and indicates that ARCE is in the grey zone with still only limited risk for bankruptcy at the moment.
  • ARCE's Altman-Z score of 1.84 is fine compared to the rest of the industry. ARCE outperforms 63.64% of its industry peers.
  • ARCE has a Debt/Equity ratio of 0.67. This is a neutral value indicating ARCE is somewhat dependend on debt financing.
  • ARCE has a Debt to Equity ratio of 0.67. This is in the lower half of the industry: ARCE underperforms 65.15% of its industry peers.
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.
  • With a Current ratio value of 1.26, ARCE perfoms like the industry average, outperforming 46.97% of the companies in the same industry.
  • ARCE has a Quick Ratio of 1.06. This is a normal value and indicates that ARCE is financially healthy and should not expect problems in meeting its short term obligations.
  • ARCE's Quick ratio of 1.06 is on the low side compared to the rest of the industry. ARCE is outperformed by 62.12% of its industry peers.
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. Growth

3.1 Past

  • ARCE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.29%, which is quite impressive.
  • Measured over the past years, ARCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.84% on average per year.
  • Looking at the last year, ARCE shows a very strong growth in Revenue. The Revenue has grown by 30.47%.
  • Measured over the past years, ARCE shows a very strong growth in Revenue. The Revenue has been growing by 48.68% on average per year.
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
  • ARCE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.47% yearly.
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

  • 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.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of 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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Find the best growth stocksShow best growing peers

3

4. Valuation

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 rather expensively when we compare the Price/Forward Earnings ratio to 28.01, 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

  • Based on the Enterprise Value to EBITDA ratio, ARCE is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
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

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ARCE's earnings are expected to grow with 82.40% in the coming years. This may justify a more expensive valuation.
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. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

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 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%.