ARQ INC (ARQ) Stock Fundamental Analysis
USA - NASDAQ:ARQ - US00770C1018 - Common Stock
6.99 USD
-0.01 (-0.14%)
6.99 USD
0 (0%)
Taking everything into account, ARQ scores 3 out of 10 in our fundamental rating. ARQ was compared to 83 industry peers in the Chemicals industry. ARQ scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ARQ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARQ has reported negative net income.
ARQ had a positive operating cash flow in the past year.
In the past 5 years ARQ reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: ARQ reported negative operating cash flow in multiple years.
1.2 Ratios
ARQ has a Return On Assets of -0.58%. This is in the lower half of the industry: ARQ underperforms 61.45% of its industry peers.
The Return On Equity of ARQ (-0.76%) is comparable to the rest of the industry.
The Return On Invested Capital of ARQ (0.53%) is worse than 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.58% | ||
| ROE | -0.76% | ||
| ROIC | 0.53% |
ROA(3y)-3.97%
ROA(5y)1.37%
ROE(3y)-5.19%
ROE(5y)0.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 1.47%, ARQ is not doing good in the industry: 75.90% of the companies in the same industry are doing better.
With a decent Gross Margin value of 36.27%, ARQ is doing good in the industry, outperforming 74.70% of the companies in the same industry.
ARQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.47% | ||
| PM (TTM) | N/A | ||
| GM | 36.27% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.52%
GM growth 5Y4.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARQ is destroying value.
The number of shares outstanding for ARQ has been increased compared to 1 year ago.
ARQ has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARQ has an improved debt to assets ratio.
2.2 Solvency
ARQ has an Altman-Z score of 3.41. This indicates that ARQ is financially healthy and has little risk of bankruptcy at the moment.
ARQ's Altman-Z score of 3.41 is amongst the best of the industry. ARQ outperforms 80.72% of its industry peers.
ARQ has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
ARQ has a Debt to Equity ratio of 0.13. This is amongst the best in the industry. ARQ outperforms 86.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.41 |
ROIC/WACC0.06
WACC8.55%
2.3 Liquidity
ARQ has a Current Ratio of 1.10. This is a normal value and indicates that ARQ is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.10, ARQ is not doing good in the industry: 90.36% of the companies in the same industry are doing better.
A Quick Ratio of 0.65 indicates that ARQ may have some problems paying its short term obligations.
ARQ has a Quick ratio of 0.65. This is amonst the worse of the industry: ARQ underperforms 89.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ARQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.67%, which is quite impressive.
The Revenue has grown by 11.96% in the past year. This is quite good.
ARQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.22% yearly.
EPS 1Y (TTM)91.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
Revenue 1Y (TTM)11.96%
Revenue growth 3Y2.8%
Revenue growth 5Y9.22%
Sales Q2Q%12.51%
3.2 Future
ARQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 63.64% yearly.
ARQ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.79% yearly.
EPS Next Y95.41%
EPS Next 2Y109.09%
EPS Next 3Y88.93%
EPS Next 5Y63.64%
Revenue Next Year10.84%
Revenue Next 2Y16.73%
Revenue Next 3Y16.47%
Revenue Next 5Y17.79%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ARQ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
ARQ is valuated quite expensively with a Price/Forward Earnings ratio of 26.79.
Based on the Price/Forward Earnings ratio, ARQ is valued a bit more expensive than the industry average as 61.45% of the companies are valued more cheaply.
ARQ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.79 |
4.2 Price Multiples
ARQ's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ARQ is more expensive than 79.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.97 |
4.3 Compensation for Growth
ARQ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARQ's earnings are expected to grow with 88.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y109.09%
EPS Next 3Y88.93%
5. Dividend
5.1 Amount
ARQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.99
-0.01 (-0.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners33.21%
Inst Owner ChangeN/A
Ins Owners18.57%
Ins Owner Change8.31%
Market Cap298.40M
Analysts82.22
Price Target10.91 (56.08%)
Short Float %4.68%
Short Ratio4.96
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)4.8%
Min EPS beat(2)-90.4%
Max EPS beat(2)100%
EPS beat(4)3
Avg EPS beat(4)30.69%
Min EPS beat(4)-90.4%
Max EPS beat(4)100%
EPS beat(8)5
Avg EPS beat(8)42.17%
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)2
Avg Revenue beat(2)6.27%
Min Revenue beat(2)2.71%
Max Revenue beat(2)9.82%
Revenue beat(4)3
Avg Revenue beat(4)4.67%
Min Revenue beat(4)-7.12%
Max Revenue beat(4)13.26%
Revenue beat(8)6
Avg Revenue beat(8)6.6%
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)0%
PT rev (3m)14.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-54.54%
EPS NY rev (1m)-118.18%
EPS NY rev (3m)-110.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.79 | ||
| P/S | 2.54 | ||
| P/FCF | N/A | ||
| P/OCF | 39.13 | ||
| P/B | 1.38 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 25.97 |
EPS(TTM)-0.01
EYN/A
EPS(NY)0.26
Fwd EY3.73%
FCF(TTM)-1.28
FCFYN/A
OCF(TTM)0.18
OCFY2.56%
SpS2.76
BVpS5.08
TBVpS4.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.58% | ||
| ROE | -0.76% | ||
| ROCE | 0.73% | ||
| ROIC | 0.53% | ||
| ROICexc | 0.55% | ||
| ROICexgc | 0.56% | ||
| OM | 1.47% | ||
| PM (TTM) | N/A | ||
| GM | 36.27% | ||
| FCFM | N/A |
ROA(3y)-3.97%
ROA(5y)1.37%
ROE(3y)-5.19%
ROE(5y)0.32%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.52%
GM growth 5Y4.26%
F-Score4
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 629.02% | ||
| Cap/Sales | 52.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.41 |
F-Score4
WACC8.55%
ROIC/WACC0.06
Cap/Depr(3y)475.88%
Cap/Depr(5y)322.19%
Cap/Sales(3y)39.34%
Cap/Sales(5y)27.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
EPS Next Y95.41%
EPS Next 2Y109.09%
EPS Next 3Y88.93%
EPS Next 5Y63.64%
Revenue 1Y (TTM)11.96%
Revenue growth 3Y2.8%
Revenue growth 5Y9.22%
Sales Q2Q%12.51%
Revenue Next Year10.84%
Revenue Next 2Y16.73%
Revenue Next 3Y16.47%
Revenue Next 5Y17.79%
EBIT growth 1Y145.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year777.58%
EBIT Next 3Y180.36%
EBIT Next 5Y107.02%
FCF growth 1Y-16.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y126.31%
OCF growth 3Y-26.14%
OCF growth 5Y-29.98%