ARC RESOURCES LTD (ARX.CA) Fundamental Analysis & Valuation

TSX:ARX • CA00208D4084

Current stock price

29.01 CAD
-0.11 (-0.38%)
Last:

This ARX.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ARX.CA Profitability Analysis

1.1 Basic Checks

  • ARX had positive earnings in the past year.
  • ARX had a positive operating cash flow in the past year.
  • ARX had positive earnings in each of the past 5 years.
  • Each year in the past 5 years ARX had a positive operating cash flow.
ARX.CA Yearly Net Income VS EBIT VS OCF VS FCFARX.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • ARX has a better Return On Assets (8.33%) than 91.83% of its industry peers.
  • ARX has a Return On Equity of 15.43%. This is amongst the best in the industry. ARX outperforms 92.79% of its industry peers.
  • ARX has a better Return On Invested Capital (9.93%) than 94.23% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ARX is above the industry average of 6.78%.
  • The last Return On Invested Capital (9.93%) for ARX is above the 3 year average (9.81%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.33%
ROE 15.43%
ROIC 9.93%
ROA(3y)9.93%
ROA(5y)11.3%
ROE(3y)17.02%
ROE(5y)19.79%
ROIC(3y)9.81%
ROIC(5y)15.4%
ARX.CA Yearly ROA, ROE, ROICARX.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

1.3 Margins

  • With an excellent Profit Margin value of 20.92%, ARX belongs to the best of the industry, outperforming 87.02% of the companies in the same industry.
  • ARX's Profit Margin has declined in the last couple of years.
  • ARX has a better Operating Margin (28.98%) than 84.13% of its industry peers.
  • In the last couple of years the Operating Margin of ARX has grown nicely.
  • The Gross Margin of ARX (68.82%) is better than 84.62% of its industry peers.
  • In the last couple of years the Gross Margin of ARX has declined.
Industry RankSector Rank
OM 28.98%
PM (TTM) 20.92%
GM 68.82%
OM growth 3Y-14.62%
OM growth 5Y41.01%
PM growth 3Y-7.68%
PM growth 5YN/A
GM growth 3Y-1.92%
GM growth 5Y-2%
ARX.CA Yearly Profit, Operating, Gross MarginsARX.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

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5

2. ARX.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARX is creating some value.
  • ARX has less shares outstanding than it did 1 year ago.
  • ARX has more shares outstanding than it did 5 years ago.
  • ARX has a worse debt/assets ratio than last year.
ARX.CA Yearly Shares OutstandingARX.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
ARX.CA Yearly Total Debt VS Total AssetsARX.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 2.36 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.36, ARX is doing good in the industry, outperforming 73.08% of the companies in the same industry.
  • The Debt to FCF ratio of ARX is 3.25, which is a good value as it means it would take ARX, 3.25 years of fcf income to pay off all of its debts.
  • ARX's Debt to FCF ratio of 3.25 is amongst the best of the industry. ARX outperforms 86.54% of its industry peers.
  • A Debt/Equity ratio of 0.41 indicates that ARX is not too dependend on debt financing.
  • ARX has a Debt to Equity ratio (0.41) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 3.25
Altman-Z 2.36
ROIC/WACC1.38
WACC7.17%
ARX.CA Yearly LT Debt VS Equity VS FCFARX.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • ARX has a Current Ratio of 0.70. This is a bad value and indicates that ARX is not financially healthy enough and could expect problems in meeting its short term obligations.
  • ARX's Current ratio of 0.70 is in line compared to the rest of the industry. ARX outperforms 51.92% of its industry peers.
  • ARX has a Quick Ratio of 0.70. This is a bad value and indicates that ARX is not financially healthy enough and could expect problems in meeting its short term obligations.
  • ARX has a Quick ratio (0.69) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.69
ARX.CA Yearly Current Assets VS Current LiabilitesARX.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ARX.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 15.87% over the past year.
  • Measured over the past years, ARX shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.81% on average per year.
  • Looking at the last year, ARX shows a quite strong growth in Revenue. The Revenue has grown by 19.08% in the last year.
  • Measured over the past years, ARX shows a very strong growth in Revenue. The Revenue has been growing by 39.96% on average per year.
EPS 1Y (TTM)15.87%
EPS 3Y-13.12%
EPS 5Y32.81%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y-11.05%
Revenue growth 5Y39.96%
Sales Q2Q%15.55%

3.2 Future

  • Based on estimates for the next years, ARX will show a decrease in Earnings Per Share. The EPS will decrease by -1.87% on average per year.
  • Based on estimates for the next years, ARX will show a small growth in Revenue. The Revenue will grow by 1.72% on average per year.
EPS Next Y-7.37%
EPS Next 2Y-2.61%
EPS Next 3Y-3.27%
EPS Next 5Y-1.87%
Revenue Next Year3.01%
Revenue Next 2Y2.12%
Revenue Next 3Y2.55%
Revenue Next 5Y1.72%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ARX.CA Yearly Revenue VS EstimatesARX.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
ARX.CA Yearly EPS VS EstimatesARX.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 -1 2 3

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6

4. ARX.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.25 indicates a correct valuation of ARX.
  • Based on the Price/Earnings ratio, ARX is valued a bit cheaper than the industry average as 70.67% of the companies are valued more expensively.
  • ARX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.54.
  • Based on the Price/Forward Earnings ratio of 14.30, the valuation of ARX can be described as correct.
  • Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than the industry average as 72.60% of the companies are valued more expensively.
  • ARX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.25
Fwd PE 14.3
ARX.CA Price Earnings VS Forward Price EarningsARX.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 87.50% of the companies in the same industry are more expensive than ARX, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARX indicates a rather cheap valuation: ARX is cheaper than 82.21% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.77
EV/EBITDA 6.18
ARX.CA Per share dataARX.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

  • The excellent profitability rating of ARX may justify a higher PE ratio.
  • ARX's earnings are expected to decrease with -3.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-2.61%
EPS Next 3Y-3.27%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. ARX.CA Dividend Analysis

5.1 Amount

  • ARX has a Yearly Dividend Yield of 2.92%.
  • Compared to an average industry Dividend Yield of 4.47, ARX pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, ARX pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.92%

5.2 History

  • The dividend of ARX is nicely growing with an annual growth rate of 21.35%!
  • ARX has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ARX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)21.35%
Div Incr Years3
Div Non Decr Years3
ARX.CA Yearly Dividends per shareARX.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

  • ARX pays out 34.82% of its income as dividend. This is a sustainable payout ratio.
DP34.82%
EPS Next 2Y-2.61%
EPS Next 3Y-3.27%
ARX.CA Yearly Income VS Free CF VS DividendARX.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B 2B
ARX.CA Dividend Payout.ARX.CA Dividend Payout, showing the Payout Ratio.ARX.CA Dividend Payout.PayoutRetained Earnings

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ARX.CA Fundamentals: All Metrics, Ratios and Statistics

ARC RESOURCES LTD

TSX:ARX (3/23/2026, 7:00:00 PM)

29.01

-0.11 (-0.38%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners42.18%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap16.57B
Revenue(TTM)6.10B
Net Income(TTM)1.28B
Analysts78.4
Price Target29.33 (1.1%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.92%
Yearly Dividend0.77
Dividend Growth(5Y)21.35%
DP34.82%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-27.46%
Min EPS beat(2)-41.04%
Max EPS beat(2)-13.87%
EPS beat(4)1
Avg EPS beat(4)-5.47%
Min EPS beat(4)-41.04%
Max EPS beat(4)39.77%
EPS beat(8)4
Avg EPS beat(8)8.93%
EPS beat(12)7
Avg EPS beat(12)18.3%
EPS beat(16)10
Avg EPS beat(16)13.87%
Revenue beat(2)2
Avg Revenue beat(2)3.77%
Min Revenue beat(2)1.5%
Max Revenue beat(2)6.04%
Revenue beat(4)4
Avg Revenue beat(4)8.36%
Min Revenue beat(4)1.5%
Max Revenue beat(4)13.38%
Revenue beat(8)8
Avg Revenue beat(8)10.45%
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)-5.56%
PT rev (3m)-7.52%
EPS NQ rev (1m)8.21%
EPS NQ rev (3m)-10.27%
EPS NY rev (1m)-6.72%
EPS NY rev (3m)-20.54%
Revenue NQ rev (1m)6.75%
Revenue NQ rev (3m)11.01%
Revenue NY rev (1m)24.63%
Revenue NY rev (3m)-2.18%
Valuation
Industry RankSector Rank
PE 13.25
Fwd PE 14.3
P/S 2.72
P/FCF 13.77
P/OCF 5.36
P/B 2.01
P/tB 2.07
EV/EBITDA 6.18
EPS(TTM)2.19
EY7.55%
EPS(NY)2.03
Fwd EY6.99%
FCF(TTM)2.11
FCFY7.26%
OCF(TTM)5.42
OCFY18.67%
SpS10.67
BVpS14.47
TBVpS14.03
PEG (NY)N/A
PEG (5Y)0.4
Graham Number26.7
Profitability
Industry RankSector Rank
ROA 8.33%
ROE 15.43%
ROCE 12.78%
ROIC 9.93%
ROICexc 9.93%
ROICexgc 10.11%
OM 28.98%
PM (TTM) 20.92%
GM 68.82%
FCFM 19.73%
ROA(3y)9.93%
ROA(5y)11.3%
ROE(3y)17.02%
ROE(5y)19.79%
ROIC(3y)9.81%
ROIC(5y)15.4%
ROICexc(3y)9.81%
ROICexc(5y)15.44%
ROICexgc(3y)10.01%
ROICexgc(5y)15.81%
ROCE(3y)12.63%
ROCE(5y)19.83%
ROICexgc growth 3Y-32.31%
ROICexgc growth 5Y57.12%
ROICexc growth 3Y-32.14%
ROICexc growth 5Y58.3%
OM growth 3Y-14.62%
OM growth 5Y41.01%
PM growth 3Y-7.68%
PM growth 5YN/A
GM growth 3Y-1.92%
GM growth 5Y-2%
F-Score6
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 3.25
Debt/EBITDA 1.01
Cap/Depr 122.19%
Cap/Sales 31.01%
Interest Coverage 13.64
Cash Conversion 93.36%
Profit Quality 94.35%
Current Ratio 0.7
Quick Ratio 0.69
Altman-Z 2.36
F-Score6
WACC7.17%
ROIC/WACC1.38
Cap/Depr(3y)129.32%
Cap/Depr(5y)119.12%
Cap/Sales(3y)33.08%
Cap/Sales(5y)27.26%
Profit Quality(3y)58.35%
Profit Quality(5y)80.09%
High Growth Momentum
Growth
EPS 1Y (TTM)15.87%
EPS 3Y-13.12%
EPS 5Y32.81%
EPS Q2Q%-28.57%
EPS Next Y-7.37%
EPS Next 2Y-2.61%
EPS Next 3Y-3.27%
EPS Next 5Y-1.87%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y-11.05%
Revenue growth 5Y39.96%
Sales Q2Q%15.55%
Revenue Next Year3.01%
Revenue Next 2Y2.12%
Revenue Next 3Y2.55%
Revenue Next 5Y1.72%
EBIT growth 1Y43.75%
EBIT growth 3Y-24.05%
EBIT growth 5Y97.35%
EBIT Next Year94.08%
EBIT Next 3Y26.11%
EBIT Next 5Y12.95%
FCF growth 1Y133.28%
FCF growth 3Y-20.61%
FCF growth 5Y30.31%
OCF growth 1Y31.72%
OCF growth 3Y-6.9%
OCF growth 5Y36.38%

ARC RESOURCES LTD / ARX.CA Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ARC RESOURCES LTD (ARX.CA) stock?

ChartMill assigns a fundamental rating of 6 / 10 to ARX.CA.


Can you provide the valuation status for ARC RESOURCES LTD?

ChartMill assigns a valuation rating of 6 / 10 to ARC RESOURCES LTD (ARX.CA). This can be considered as Fairly Valued.


What is the profitability of ARX stock?

ARC RESOURCES LTD (ARX.CA) has a profitability rating of 8 / 10.


What is the earnings growth outlook for ARC RESOURCES LTD?

The Earnings per Share (EPS) of ARC RESOURCES LTD (ARX.CA) is expected to decline by -7.37% in the next year.


How sustainable is the dividend of ARC RESOURCES LTD (ARX.CA) stock?

The dividend rating of ARC RESOURCES LTD (ARX.CA) is 6 / 10 and the dividend payout ratio is 34.82%.