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

USA • Nasdaq • 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

Overall ARCE gets a fundamental rating of 4 out of 10. We evaluated ARCE against 75 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of ARCE have multiple concerns. ARCE is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year ARCE has reported negative net income.
  • 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 of -0.52%. This is comparable to the rest of the industry: ARCE outperforms 54.55% of its industry peers.
  • Looking at the Return On Equity, with a value of -1.22%, ARCE is in line with its industry, outperforming 56.06% of the companies in the same industry.
  • 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.
  • ARCE had an Average Return On Invested Capital over the past 3 years of 2.64%. This is significantly below the industry average of 10.44%.
  • 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.
  • Looking at the Operating Margin, with a value of 13.91%, ARCE is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ARCE has declined.
  • ARCE has a better Gross Margin (66.71%) than 75.76% of its industry peers.
  • ARCE's Gross Margin has been stable in the last couple of years.
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.
  • The number of shares outstanding for ARCE remains at a similar level compared to 1 year ago.
  • ARCE has a worse debt/assets ratio than last year.
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 better Altman-Z score (1.84) than 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's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. ARCE is outperformed by 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

  • ARCE has a Current Ratio of 1.26. This is a normal value and indicates that ARCE is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.26, ARCE is in line with its industry, 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 has a worse Quick ratio (1.06) than 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.
  • 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

  • Based on estimates for the next years, ARCE will show a very strong growth in Earnings Per Share. The EPS will grow by 82.40% on average per year.
  • Based on estimates for the next years, ARCE will show a very strong growth in Revenue. The Revenue will grow by 26.47% on average per year.
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.
  • 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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • ARCE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • ARCE is valuated quite expensively with a Price/Forward Earnings ratio of 37.42.
  • The rest of the industry has a similar Price/Forward Earnings ratio as ARCE.
  • ARCE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.86.
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

  • 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. 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%.