ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
TSX:ARX - CA00208D4084 - Common Stock
26.14 CAD
-0.4 (-1.51%)
Overall ARX gets a fundamental rating of 8 out of 10. We evaluated ARX against 211 industry peers in the Oil, Gas & Consumable Fuels industry. ARX has an excellent profitability rating, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: ARX is growing strongly while it also seems undervalued. These ratings could make ARX a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year ARX was profitable.
ARX had a positive operating cash flow in the past year.
Of the past 5 years ARX 4 years were profitable.
In the past 5 years ARX always reported a positive cash flow from operatings.
1.2 Ratios
ARX has a better Return On Assets (10.58%) than 92.42% of its industry peers.
ARX has a better Return On Equity (18.08%) than 90.52% of its industry peers.
The Return On Invested Capital of ARX (10.19%) is better than 91.94% of its industry peers.
ARX had an Average Return On Invested Capital over the past 3 years of 16.99%. This is significantly above the industry average of 6.94%.
The 3 year average ROIC (16.99%) for ARX is well above the current ROIC(10.19%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.58% | ||
| ROE | 18.08% | ||
| ROIC | 10.19% |
ROA(3y)13.76%
ROA(5y)7.43%
ROE(3y)23.41%
ROE(5y)12.78%
ROIC(3y)16.99%
ROIC(5y)13.58%
1.3 Margins
ARX has a Profit Margin of 26.24%. This is amongst the best in the industry. ARX outperforms 86.73% of its industry peers.
In the last couple of years the Profit Margin of ARX has grown nicely.
ARX has a Operating Margin of 29.11%. This is amongst the best in the industry. ARX outperforms 80.09% of its industry peers.
ARX's Operating Margin has improved in the last couple of years.
ARX has a Gross Margin of 69.84%. This is amongst the best in the industry. ARX outperforms 89.57% of its industry peers.
In the last couple of years the Gross Margin of ARX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.11% | ||
| PM (TTM) | 26.24% | ||
| GM | 69.84% |
OM growth 3Y-15.37%
OM growth 5Y23.89%
PM growth 3Y12.7%
PM growth 5YN/A
GM growth 3Y-2.53%
GM growth 5Y-0.87%
2. Health
2.1 Basic Checks
ARX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ARX has less shares outstanding
The number of shares outstanding for ARX has been increased compared to 5 years ago.
Compared to 1 year ago, ARX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.58 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARX has a Altman-Z score of 2.58. This is in the better half of the industry: ARX outperforms 76.78% of its industry peers.
ARX has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as ARX would need 2.58 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.58, ARX belongs to the best of the industry, outperforming 85.78% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that ARX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, ARX is in the better half of the industry, outperforming 60.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.22
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.21 indicates that ARX should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.21, ARX is doing good in the industry, outperforming 65.88% of the companies in the same industry.
ARX has a Quick Ratio of 1.20. This is a normal value and indicates that ARX is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.20, ARX is doing good in the industry, outperforming 71.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
ARX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.44%, which is quite impressive.
ARX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.78% yearly.
ARX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.09%.
Measured over the past years, ARX shows a very strong growth in Revenue. The Revenue has been growing by 33.07% on average per year.
EPS 1Y (TTM)31.44%
EPS 3Y14.78%
EPS 5YN/A
EPS Q2Q%70%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%35.68%
3.2 Future
ARX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.35% yearly.
The Revenue is expected to grow by 7.78% on average over the next years.
EPS Next Y51.36%
EPS Next 2Y32.25%
EPS Next 3Y33.29%
EPS Next 5Y24.35%
Revenue Next Year17.97%
Revenue Next 2Y11.98%
Revenue Next 3Y7.62%
Revenue Next 5Y7.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.25 indicates a reasonable valuation of ARX.
Based on the Price/Earnings ratio, ARX is valued a bit cheaper than the industry average as 68.72% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ARX to the average of the S&P500 Index (27.14), we can say ARX is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.91, the valuation of ARX can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARX indicates a somewhat cheap valuation: ARX is cheaper than 72.51% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ARX to the average of the S&P500 Index (22.80), we can say ARX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
82.46% of the companies in the same industry are more expensive than ARX, based on the Enterprise Value to EBITDA ratio.
69.19% of the companies in the same industry are more expensive than ARX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.36 | ||
| EV/EBITDA | 5.61 |
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.
The excellent profitability rating of ARX may justify a higher PE ratio.
ARX's earnings are expected to grow with 33.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y32.25%
EPS Next 3Y33.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.82%, ARX has a reasonable but not impressive dividend return.
ARX's Dividend Yield is a higher than the industry average which is at 6.24.
ARX's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
The dividend of ARX has a limited annual growth rate of 2.59%.
ARX has paid a dividend for at least 10 years, which is a reliable track record.
ARX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.59%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ARX pays out 28.39% of its income as dividend. This is a sustainable payout ratio.
ARX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.39%
EPS Next 2Y32.25%
EPS Next 3Y33.29%
TSX:ARX (8/27/2025, 7:00:00 PM)
26.14
-0.4 (-1.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners39.56%
Inst Owner ChangeN/A
Ins Owners0.42%
Ins Owner ChangeN/A
Market Cap15.22B
Analysts83.33
Price Target34.84 (33.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend0.68
Dividend Growth(5Y)2.59%
DP28.39%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.52%
Min EPS beat(2)-6.74%
Max EPS beat(2)39.77%
EPS beat(4)3
Avg EPS beat(4)27.75%
Min EPS beat(4)-6.74%
Max EPS beat(4)57.44%
EPS beat(8)5
Avg EPS beat(8)19.88%
EPS beat(12)9
Avg EPS beat(12)29.45%
EPS beat(16)11
Avg EPS beat(16)16.61%
Revenue beat(2)2
Avg Revenue beat(2)12.95%
Min Revenue beat(2)12.52%
Max Revenue beat(2)13.38%
Revenue beat(4)4
Avg Revenue beat(4)9.41%
Min Revenue beat(4)3.66%
Max Revenue beat(4)13.38%
Revenue beat(8)8
Avg Revenue beat(8)12.74%
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)0.11%
PT rev (3m)4.34%
EPS NQ rev (1m)1.11%
EPS NQ rev (3m)-11.59%
EPS NY rev (1m)-12.57%
EPS NY rev (3m)-12.57%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-8.64%
Revenue NY rev (1m)4.45%
Revenue NY rev (3m)4.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 7.91 | ||
| P/S | 2.66 | ||
| P/FCF | 13.36 | ||
| P/OCF | 5.28 | ||
| P/B | 1.84 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 5.61 |
EPS(TTM)2.55
EY9.76%
EPS(NY)3.31
Fwd EY12.65%
FCF(TTM)1.96
FCFY7.48%
OCF(TTM)4.95
OCFY18.93%
SpS9.81
BVpS14.24
TBVpS13.82
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.58% | ||
| ROE | 18.08% | ||
| ROCE | 13.16% | ||
| ROIC | 10.19% | ||
| ROICexc | 11.01% | ||
| ROICexgc | 11.25% | ||
| OM | 29.11% | ||
| PM (TTM) | 26.24% | ||
| GM | 69.84% | ||
| FCFM | 19.93% |
ROA(3y)13.76%
ROA(5y)7.43%
ROE(3y)23.41%
ROE(5y)12.78%
ROIC(3y)16.99%
ROIC(5y)13.58%
ROICexc(3y)17.05%
ROICexc(5y)13.61%
ROICexgc(3y)17.46%
ROICexgc(5y)13.96%
ROCE(3y)21.94%
ROCE(5y)17.54%
ROICexcg growth 3Y-21.36%
ROICexcg growth 5Y39.3%
ROICexc growth 3Y-21.23%
ROICexc growth 5Y40.04%
OM growth 3Y-15.37%
OM growth 5Y23.89%
PM growth 3Y12.7%
PM growth 5YN/A
GM growth 3Y-2.53%
GM growth 5Y-0.87%
F-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 124.06% | ||
| Cap/Sales | 30.48% | ||
| Interest Coverage | 15.25 | ||
| Cash Conversion | 93.92% | ||
| Profit Quality | 75.96% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.58 |
F-Score8
WACC8.37%
ROIC/WACC1.22
Cap/Depr(3y)124.75%
Cap/Depr(5y)99.95%
Cap/Sales(3y)28.25%
Cap/Sales(5y)26.97%
Profit Quality(3y)61.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.44%
EPS 3Y14.78%
EPS 5YN/A
EPS Q2Q%70%
EPS Next Y51.36%
EPS Next 2Y32.25%
EPS Next 3Y33.29%
EPS Next 5Y24.35%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%35.68%
Revenue Next Year17.97%
Revenue Next 2Y11.98%
Revenue Next 3Y7.62%
Revenue Next 5Y7.78%
EBIT growth 1Y25.39%
EBIT growth 3Y-15.42%
EBIT growth 5Y64.86%
EBIT Next Year176.6%
EBIT Next 3Y40.65%
EBIT Next 5YN/A
FCF growth 1Y-19.97%
FCF growth 3Y-18.47%
FCF growth 5YN/A
OCF growth 1Y-6.24%
OCF growth 3Y5.39%
OCF growth 5Y29.74%