ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
TSX:ARX • CA00208D4084
24.43 CAD
+0.38 (+1.58%)
Last: Feb 13, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to ARX. ARX was compared to 203 industry peers in the Oil, Gas & Consumable Fuels industry. ARX scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARX. With these ratings, ARX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- ARX had positive earnings in the past year.
- In the past year ARX had a positive cash flow from operations.
- In the past 5 years ARX has always been profitable.
- Each year in the past 5 years ARX had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 8.33%, ARX belongs to the best of the industry, outperforming 92.61% of the companies in the same industry.
- The Return On Equity of ARX (15.43%) is better than 93.60% of its industry peers.
- With an excellent Return On Invested Capital value of 9.93%, ARX belongs to the best of the industry, outperforming 92.61% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ARX is above the industry average of 6.56%.
- The 3 year average ROIC (9.81%) for ARX is below the current ROIC(9.93%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- ARX's Profit Margin of 20.92% is amongst the best of the industry. ARX outperforms 87.68% of its industry peers.
- In the last couple of years the Profit Margin of ARX has declined.
- ARX has a Operating Margin of 28.98%. This is amongst the best in the industry. ARX outperforms 82.27% of its industry peers.
- ARX's Operating Margin has improved in the last couple of years.
- ARX has a better Gross Margin (68.82%) than 84.24% of its industry peers.
- ARX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARX is still creating some value.
- The number of shares outstanding for ARX has been reduced compared to 1 year ago.
- The number of shares outstanding for ARX has been increased compared to 5 years ago.
- The debt/assets ratio for ARX is higher compared to a year ago.
2.2 Solvency
- ARX has an Altman-Z score of 2.14. This is not the best score and indicates that ARX is in the grey zone with still only limited risk for bankruptcy at the moment.
- ARX's Altman-Z score of 2.14 is fine compared to the rest of the industry. ARX outperforms 70.94% of its industry peers.
- ARX has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as ARX would need 3.25 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.25, ARX belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- ARX has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
- ARX has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: ARX outperforms 53.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.39
WACC7.14%
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.
- Looking at the Current ratio, with a value of 0.70, ARX is in line with its industry, outperforming 43.35% of the companies in the same industry.
- A Quick Ratio of 0.69 indicates that ARX may have some problems paying its short term obligations.
- The Quick ratio of ARX (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- ARX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.87%, which is quite good.
- 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.
- ARX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.08%.
- ARX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.96% yearly.
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
- ARX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.03% yearly.
- ARX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.72% yearly.
EPS Next Y-0.7%
EPS Next 2Y6.66%
EPS Next 3Y-3.53%
EPS Next 5Y-2.03%
Revenue Next Year6.94%
Revenue Next 2Y2.34%
Revenue Next 3Y5%
Revenue Next 5Y1.72%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- ARX is valuated reasonably with a Price/Earnings ratio of 11.16.
- ARX's Price/Earnings ratio is a bit cheaper when compared to the industry. ARX is cheaper than 73.89% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.16. ARX is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.23 indicates a reasonable valuation of ARX.
- Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than the industry average as 70.44% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 28.10. ARX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 11.23 |
4.2 Price Multiples
- 88.67% of the companies in the same industry are more expensive than ARX, based on the Enterprise Value to EBITDA ratio.
- 83.25% 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 | 11.6 | ||
| EV/EBITDA | 5.39 |
4.3 Compensation for Growth
- ARX has an outstanding profitability rating, which may justify a higher PE ratio.
- ARX's earnings are expected to decrease with -3.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y6.66%
EPS Next 3Y-3.53%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.49%, ARX has a reasonable but not impressive dividend return.
- ARX's Dividend Yield is a higher than the industry average which is at 3.25.
- ARX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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
5.3 Sustainability
- ARX pays out 34.82% of its income as dividend. This is a sustainable payout ratio.
DP34.82%
EPS Next 2Y6.66%
EPS Next 3Y-3.53%
TSX:ARX (2/13/2026, 7:00:00 PM)
24.43
+0.38 (+1.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners43.61%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap13.96B
Revenue(TTM)6.10B
Net Income(TTM)1.28B
Analysts82.4
Price Target31.05 (27.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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)-2.59%
PT rev (3m)-7.92%
EPS NQ rev (1m)-13.23%
EPS NQ rev (3m)-40.67%
EPS NY rev (1m)-8.06%
EPS NY rev (3m)-29.42%
Revenue NQ rev (1m)4.81%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 11.23 | ||
| P/S | 2.29 | ||
| P/FCF | 11.6 | ||
| P/OCF | 4.51 | ||
| P/B | 1.69 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 5.39 |
EPS(TTM)2.19
EY8.96%
EPS(NY)2.17
Fwd EY8.9%
FCF(TTM)2.11
FCFY8.62%
OCF(TTM)5.41
OCFY22.16%
SpS10.67
BVpS14.46
TBVpS14.03
PEG (NY)N/A
PEG (5Y)0.34
Graham Number26.7
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.14 |
F-Score6
WACC7.14%
ROIC/WACC1.39
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-0.7%
EPS Next 2Y6.66%
EPS Next 3Y-3.53%
EPS Next 5Y-2.03%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y-11.05%
Revenue growth 5Y39.96%
Sales Q2Q%15.55%
Revenue Next Year6.94%
Revenue Next 2Y2.34%
Revenue Next 3Y5%
Revenue Next 5Y1.72%
EBIT growth 1Y43.75%
EBIT growth 3Y-24.05%
EBIT growth 5Y97.35%
EBIT Next Year93.42%
EBIT Next 3Y23.21%
EBIT Next 5Y12.96%
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 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 7 / 10 to ARC RESOURCES LTD (ARX.CA). This can be considered as Undervalued.
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 -0.7% 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%.