13.98 USD
-0.01 (-0.07%)
13.99 USD
+0.01 (+0.07%)
Overall ARCE gets a fundamental rating of 4 out of 10. We evaluated ARCE against 77 industry peers in the Diversified Consumer Services industry. ARCE may be in some trouble as it scores bad on both profitability and health. ARCE is valued quite expensive, but it does show an excellent growth.
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.
In multiple years ARCE reported negative net income over the last 5 years.
In multiple years ARCE reported negative operating cash flow during the last 5 years.
1.2 Ratios
ARCE's Return On Assets of -0.52% is in line compared to the rest of the industry. ARCE outperforms 54.55% of 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 has a Return On Invested Capital of 3.15%. This is in the better half 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 9.42%.
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 Rank | Sector 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%
1.3 Margins
In the last couple of years the Profit Margin of ARCE has declined.
ARCE's Operating Margin of 13.91% is fine compared to the rest of the industry. ARCE outperforms 78.79% of its industry peers.
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.
In the last couple of years the Gross Margin of ARCE has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARCE 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.
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 has a better Altman-Z score (1.84) than 63.64% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that ARCE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, ARCE is not doing good in the industry: 65.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.84 |
ROIC/WACC0.23
WACC13.98%
2.3 Liquidity
A Current Ratio of 1.26 indicates that ARCE should not have too much problems paying its short term obligations.
ARCE's Current ratio of 1.26 is in line compared to the rest of the industry. ARCE outperforms 46.97% of its industry peers.
A Quick Ratio of 1.06 indicates that ARCE should not have too much problems paying its short term obligations.
ARCE has a worse Quick ratio (1.06) than 62.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 75.29% over the past year.
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
ARCE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 37.42, ARCE can be considered very expensive at the moment.
ARCE's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ARCE to the average of the S&P500 Index (36.59), we can say ARCE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 37.42 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.16 |
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.
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%
5. Dividend
5.1 Amount
ARCE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.98
-0.01 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 for 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.
How financially healthy is ARCO PLATFORM LTD - CLASS A?
The financial health rating of ARCO PLATFORM LTD - CLASS A (ARCE) is 3 / 10.
Can you provide the dividend sustainability for ARCE stock?
The dividend rating of ARCO PLATFORM LTD - CLASS A (ARCE) is 0 / 10 and the dividend payout ratio is 0%.