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 76 industry peers in the Diversified Consumer Services industry. ARCE has a bad profitability rating. Also its financial health evaluation is rather negative. ARCE is valued quite expensively, but it does show have an excellent growth rating.
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.
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.
ARCE has a Return On Equity (-1.22%) which is in line with its industry peers.
ARCE has a better Return On Invested Capital (3.15%) than 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 10.55%.
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.
ARCE's Operating Margin has declined in the last couple of years.
The Gross Margin of ARCE (66.71%) is better than 75.76% of its industry peers.
ARCE's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARCE is destroying value.
The number of shares outstanding for ARCE remains at a similar level compared to 1 year ago.
Compared to 1 year ago, ARCE has a worse debt to assets ratio.
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.
With a decent Altman-Z score value of 1.84, ARCE is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.84 |
ROIC/WACC0.23
WACC13.98%
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.
The Current ratio of ARCE (1.26) is comparable to the rest of the 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.06 |
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.
The Earnings Per Share has been decreasing by -4.84% on average over the past years.
ARCE shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.47%.
ARCE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.68% yearly.
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.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
ARCE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 37.42, the valuation of ARCE can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, ARCE is valued quite expensively.
| 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
ARCE's 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%
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 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%.