ARCHER (ARCH.OL) Stock Fundamental Analysis
OSL:ARCH - Euronext Oslo - BMG0451H2087 - Common Stock - Currency: NOK
We assign a fundamental rating of 4 out of 10 to ARCH. ARCH was compared to 35 industry peers in the Energy Equipment & Services industry. While ARCH is still in line with the averages on profitability rating, there are concerns on its financial health. ARCH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ARCH had negative earnings in the past year.
In the past year ARCH had a positive cash flow from operations.
ARCH had negative earnings in 4 of the past 5 years.
In the past 5 years ARCH always reported a positive cash flow from operatings.
1.2 Ratios
ARCH's Return On Assets of -4.22% is on the low side compared to the rest of the industry. ARCH is outperformed by 85.71% of its industry peers.
ARCH has a Return On Equity of -22.92%. This is amonst the worse of the industry: ARCH underperforms 91.43% of its industry peers.
ARCH has a Return On Invested Capital (7.90%) which is comparable to the rest of the industry.
ARCH had an Average Return On Invested Capital over the past 3 years of 12.88%. This is above the industry average of 10.50%.
The last Return On Invested Capital (7.90%) for ARCH is well below the 3 year average (12.88%), which needs to be investigated, but indicates that ARCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.22% | ||
| ROE | -22.92% | ||
| ROIC | 7.9% |
ROA(3y)-1.53%
ROA(5y)-1.44%
ROE(3y)-4.88%
ROE(5y)-7.65%
ROIC(3y)12.88%
ROIC(5y)9.12%
1.3 Margins
The Operating Margin of ARCH (5.42%) is worse than 77.14% of its industry peers.
In the last couple of years the Operating Margin of ARCH has grown nicely.
ARCH has a Gross Margin of 85.35%. This is amongst the best in the industry. ARCH outperforms 97.14% of its industry peers.
ARCH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.42% | ||
| PM (TTM) | N/A | ||
| GM | 85.35% |
OM growth 3Y19.08%
OM growth 5Y3.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.81%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARCH is creating some value.
The number of shares outstanding for ARCH has been increased compared to 1 year ago.
Compared to 5 years ago, ARCH has less shares outstanding
The debt/assets ratio for ARCH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.52, we must say that ARCH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ARCH (0.52) is comparable to the rest of the industry.
ARCH has a debt to FCF ratio of 43.08. This is a negative value and a sign of low solvency as ARCH would need 43.08 years to pay back of all of its debts.
The Debt to FCF ratio of ARCH (43.08) is worse than 68.57% of its industry peers.
ARCH has a Debt/Equity ratio of 2.47. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ARCH (2.47) is worse than 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 43.08 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.67
WACC11.84%
2.3 Liquidity
ARCH has a Current Ratio of 1.25. This is a normal value and indicates that ARCH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.25, ARCH is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that ARCH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, ARCH is doing worse than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for ARCH have decreased strongly by -403.23% in the last year.
ARCH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.23%.
ARCH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.97% yearly.
EPS 1Y (TTM)-403.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-3200%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y11.59%
Revenue growth 5Y6.97%
Sales Q2Q%11.09%
3.2 Future
The Earnings Per Share is expected to grow by 138.87% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.49% on average over the next years.
EPS Next Y224.66%
EPS Next 2Y138.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.98%
Revenue Next 2Y6.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ARCH. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 4.21 indicates a rather cheap valuation of ARCH.
Based on the Price/Forward Earnings ratio, ARCH is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
ARCH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARCH is valued a bit cheaper than 74.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARCH is valued a bit more expensive than the industry average as 68.57% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.44 | ||
| EV/EBITDA | 4.61 |
4.3 Compensation for Growth
ARCH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARCH's earnings are expected to grow with 138.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y138.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ARCH has a Yearly Dividend Yield of 2.73%.
ARCH's Dividend Yield is comparable with the industry average which is at 6.53.
ARCH's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y138.87%
EPS Next 3YN/A
OSL:ARCH (5/30/2025, 7:00:00 PM)
23.85
-0.15 (-0.62%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners10.64%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner ChangeN/A
Market Cap2.16B
Analysts84
Price Target40.46 (69.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-258.67%
Min EPS beat(2)-529.9%
Max EPS beat(2)12.56%
EPS beat(4)1
Avg EPS beat(4)-166.26%
Min EPS beat(4)-529.9%
Max EPS beat(4)12.56%
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)-1.69%
Min Revenue beat(2)-3.23%
Max Revenue beat(2)-0.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-3.23%
Max Revenue beat(4)2.13%
Revenue beat(8)4
Avg Revenue beat(8)0.99%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.03%
PT rev (3m)4.39%
EPS NQ rev (1m)-7.69%
EPS NQ rev (3m)33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-33.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.21 | ||
| P/S | 0.16 | ||
| P/FCF | 18.44 | ||
| P/OCF | 2.82 | ||
| P/B | 1.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.61 |
EPS(TTM)-4.79
EYN/A
EPS(NY)5.66
Fwd EY23.74%
FCF(TTM)1.29
FCFY5.42%
OCF(TTM)8.47
OCFY35.51%
SpS150.14
BVpS21.79
TBVpS-1.1
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.22% | ||
| ROE | -22.92% | ||
| ROCE | 10.26% | ||
| ROIC | 7.9% | ||
| ROICexc | 8.84% | ||
| ROICexgc | 13.05% | ||
| OM | 5.42% | ||
| PM (TTM) | N/A | ||
| GM | 85.35% | ||
| FCFM | 0.86% |
ROA(3y)-1.53%
ROA(5y)-1.44%
ROE(3y)-4.88%
ROE(5y)-7.65%
ROIC(3y)12.88%
ROIC(5y)9.12%
ROICexc(3y)26.55%
ROICexc(5y)17.43%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)16.72%
ROCE(5y)11.84%
ROICexcg growth 3Y35.61%
ROICexcg growth 5Y-55.53%
ROICexc growth 3Y32.84%
ROICexc growth 5Y-12.9%
OM growth 3Y19.08%
OM growth 5Y3.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.81%
GM growth 5YN/A
F-Score3
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 43.08 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 97.85% | ||
| Cap/Sales | 4.78% | ||
| Interest Coverage | 1.09 | ||
| Cash Conversion | 54.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.52 |
F-Score3
WACC11.84%
ROIC/WACC0.67
Cap/Depr(3y)89.27%
Cap/Depr(5y)79.35%
Cap/Sales(3y)4.13%
Cap/Sales(5y)3.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-403.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-3200%
EPS Next Y224.66%
EPS Next 2Y138.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.23%
Revenue growth 3Y11.59%
Revenue growth 5Y6.97%
Sales Q2Q%11.09%
Revenue Next Year10.98%
Revenue Next 2Y6.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.14%
EBIT growth 3Y32.88%
EBIT growth 5Y10.77%
EBIT Next Year117.49%
EBIT Next 3Y32.78%
EBIT Next 5YN/A
FCF growth 1Y-73.32%
FCF growth 3Y28.46%
FCF growth 5Y26.43%
OCF growth 1Y-6.34%
OCF growth 3Y24.99%
OCF growth 5Y13.72%