ARC RESOURCES LTD (ARX.CA) Fundamental Analysis & Valuation
TSX:ARX • CA00208D4084
Current stock price
25.77 CAD
-0.35 (-1.34%)
Last:
This ARX.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ARX.CA Profitability Analysis
1.1 Basic Checks
- In the past year ARX was profitable.
- ARX had a positive operating cash flow in the past year.
- In the past 5 years ARX has always been profitable.
- In the past 5 years ARX always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.33%, ARX belongs to the top of the industry, outperforming 91.75% of the companies in the same industry.
- The Return On Equity of ARX (15.43%) is better than 92.72% of its industry peers.
- ARX has a Return On Invested Capital of 9.93%. This is amongst the best in the industry. ARX outperforms 93.69% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ARX is above the industry average of 6.84%.
- 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
- The Profit Margin of ARX (20.92%) is better than 85.44% 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 83.01% of its industry peers.
- ARX's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 68.82%, ARX belongs to the best of the industry, outperforming 83.50% of the companies in the same industry.
- 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. ARX.CA Health Analysis
2.1 Basic Checks
- ARX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for ARX is higher compared to a year ago.
2.2 Solvency
- ARX has an Altman-Z score of 2.19. 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 2.19 is fine compared to the rest of the industry. ARX outperforms 69.42% 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.
- ARX has a Debt to FCF ratio of 3.25. This is amongst the best in the industry. ARX outperforms 86.89% of its industry peers.
- A Debt/Equity ratio of 0.41 indicates that ARX is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.41, ARX perfoms like the industry average, outperforming 55.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.38
WACC7.21%
2.3 Liquidity
- A Current Ratio of 0.70 indicates that ARX may have some problems paying its short term obligations.
- ARX has a Current ratio of 0.70. This is comparable to the rest of the industry: ARX outperforms 52.43% 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 of 0.69. This is comparable to the rest of the industry: ARX outperforms 54.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.69 |
3. ARX.CA Growth Analysis
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.
- The Earnings Per Share has been growing by 32.81% on average over the past years. This is a very strong growth
- ARX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.08%.
- 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
- ARX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.66% yearly.
- Based on estimates for the next years, ARX will show a small growth in Revenue. The Revenue will grow by 2.20% on average per year.
EPS Next Y7.13%
EPS Next 2Y4.52%
EPS Next 3Y2.24%
EPS Next 5Y0.66%
Revenue Next Year7.47%
Revenue Next 2Y3.5%
Revenue Next 3Y2.86%
Revenue Next 5Y2.2%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. ARX.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.77, the valuation of ARX can be described as very reasonable.
- 73.79% of the companies in the same industry are more expensive than ARX, based on the Price/Earnings ratio.
- ARX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
- ARX is valuated reasonably with a Price/Forward Earnings ratio of 10.98.
- Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than 75.24% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, ARX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARX indicates a rather cheap valuation: ARX is cheaper than 88.83% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ARX is valued cheaper than 83.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.13 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
- ARX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ARX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)0.36
EPS Next 2Y4.52%
EPS Next 3Y2.24%
5. ARX.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.22%, ARX has a reasonable but not impressive dividend return.
- ARX's Dividend Yield is a higher than the industry average which is at 3.82.
- ARX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
- On average, the dividend of ARX grows each year by 21.35%, which is quite nice.
- 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)21.35%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- ARX pays out 34.82% of its income as dividend. This is a sustainable payout ratio.
- ARX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.82%
EPS Next 2Y4.52%
EPS Next 3Y2.24%
ARX.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:ARX (4/24/2026, 7:00:00 PM)
25.77
-0.35 (-1.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners42.8%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap14.59B
Revenue(TTM)6.10B
Net Income(TTM)1.28B
Analysts78.33
Price Target30.81 (19.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend0.77
Dividend Growth(5Y)21.35%
DP34.82%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-31 2026-03-31 (0.21)
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)5.06%
PT rev (3m)-3.17%
EPS NQ rev (1m)19.63%
EPS NQ rev (3m)27.41%
EPS NY rev (1m)15.66%
EPS NY rev (3m)7.89%
Revenue NQ rev (1m)2.51%
Revenue NQ rev (3m)11.46%
Revenue NY rev (1m)4.13%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 10.98 | ||
| P/S | 2.39 | ||
| P/FCF | 12.13 | ||
| P/OCF | 4.72 | ||
| P/B | 1.77 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 5.58 |
EPS(TTM)2.19
EY8.5%
EPS(NY)2.35
Fwd EY9.1%
FCF(TTM)2.12
FCFY8.24%
OCF(TTM)5.46
OCFY21.2%
SpS10.77
BVpS14.59
TBVpS14.16
PEG (NY)1.65
PEG (5Y)0.36
Graham Number26.8169 (4.06%)
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 | 2.19 |
F-Score6
WACC7.21%
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 Y7.13%
EPS Next 2Y4.52%
EPS Next 3Y2.24%
EPS Next 5Y0.66%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y-11.05%
Revenue growth 5Y39.96%
Sales Q2Q%15.55%
Revenue Next Year7.47%
Revenue Next 2Y3.5%
Revenue Next 3Y2.86%
Revenue Next 5Y2.2%
EBIT growth 1Y43.75%
EBIT growth 3Y-24.05%
EBIT growth 5Y97.35%
EBIT Next Year126.59%
EBIT Next 3Y26.18%
EBIT Next 5Y13.91%
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 7 / 10 to ARC RESOURCES LTD (ARX.CA). This can be considered as Undervalued.
How profitable is ARC RESOURCES LTD (ARX.CA) stock?
ARC RESOURCES LTD (ARX.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ARC RESOURCES LTD (ARX.CA) stock?
The Price/Earnings (PE) ratio for ARC RESOURCES LTD (ARX.CA) is 11.77 and the Price/Book (PB) ratio is 1.77.
How financially healthy is ARC RESOURCES LTD?
The financial health rating of ARC RESOURCES LTD (ARX.CA) is 5 / 10.