ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - TSX:ARX - CA00208D4084 - Common Stock
25.8 CAD
+0.33 (+1.3%)
Overall ARX gets a fundamental rating of 8 out of 10. We evaluated ARX against 218 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 would make ARX suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
ARX had positive earnings in the past year.
ARX had a positive operating cash flow in the past year.
Of the past 5 years ARX 4 years were profitable.
ARX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARX's Return On Assets of 10.58% is amongst the best of the industry. ARX outperforms 93.12% of its industry peers.
ARX has a Return On Equity of 18.08%. This is amongst the best in the industry. ARX outperforms 92.20% of its industry peers.
With an excellent Return On Invested Capital value of 10.19%, ARX belongs to the best of the industry, outperforming 92.66% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARX is significantly above the industry average of 6.89%.
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
Looking at the Profit Margin, with a value of 26.24%, ARX belongs to the top of the industry, outperforming 86.24% of the companies in the same industry.
ARX's Profit Margin has improved in the last couple of years.
ARX's Operating Margin of 29.11% is amongst the best of the industry. ARX outperforms 81.19% of its industry peers.
ARX's Operating Margin has improved in the last couple of years.
ARX's Gross Margin of 69.84% is amongst the best of the industry. ARX outperforms 89.45% 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.
ARX has less shares outstanding than it did 1 year ago.
ARX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.56 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.56, ARX is in the better half of the industry, outperforming 74.77% of the companies in the same industry.
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 87.16% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that ARX is not too dependend on debt financing.
ARX's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. ARX outperforms 60.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.39
WACC7.35%
2.3 Liquidity
ARX has a Current Ratio of 1.21. This is a normal value and indicates that ARX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ARX (1.21) is better than 64.22% of its industry peers.
A Quick Ratio of 1.20 indicates that ARX should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.20, ARX is doing good in the industry, outperforming 69.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.44% over the past year.
ARX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.78% yearly.
Looking at the last year, ARX shows a quite strong growth in Revenue. The Revenue has grown by 9.09% in the last year.
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 8.04% on average over the next years. This is quite good.
EPS Next Y46.62%
EPS Next 2Y29.78%
EPS Next 3Y32.67%
EPS Next 5Y24.35%
Revenue Next Year19.4%
Revenue Next 2Y10.87%
Revenue Next 3Y7.11%
Revenue Next 5Y8.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
ARX is valuated reasonably with a Price/Earnings ratio of 10.12.
Based on the Price/Earnings ratio, ARX is valued a bit cheaper than 70.64% of the companies in the same industry.
ARX is valuated cheaply when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.11, the valuation of ARX can be described as reasonable.
Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than the industry average as 74.31% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 31.86. ARX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaper than 86.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARX is valued a bit cheaper than the industry average as 70.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.17 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
ARX's 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.
A more expensive valuation may be justified as ARX's earnings are expected to grow with 32.67% in the coming years.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y29.78%
EPS Next 3Y32.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.95%, ARX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.34, ARX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, ARX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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.
The dividend of ARX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.39%
EPS Next 2Y29.78%
EPS Next 3Y32.67%
TSX:ARX (11/5/2025, 7:00:00 PM)
25.8
+0.33 (+1.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners41.5%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap15.00B
Revenue(TTM)5.72B
Net Income(TTM)1.50B
Analysts83.48
Price Target33.72 (30.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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)-2.95%
PT rev (3m)-3.11%
EPS NQ rev (1m)2.73%
EPS NQ rev (3m)-7.82%
EPS NY rev (1m)-3.13%
EPS NY rev (3m)-15.31%
Revenue NQ rev (1m)-9.49%
Revenue NQ rev (3m)-11.2%
Revenue NY rev (1m)1.21%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 8.11 | ||
| P/S | 2.62 | ||
| P/FCF | 13.17 | ||
| P/OCF | 5.21 | ||
| P/B | 1.81 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 5.54 |
EPS(TTM)2.55
EY9.88%
EPS(NY)3.18
Fwd EY12.34%
FCF(TTM)1.96
FCFY7.6%
OCF(TTM)4.96
OCFY19.21%
SpS9.83
BVpS14.27
TBVpS13.84
PEG (NY)0.22
PEG (5Y)N/A
Graham Number28.61
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%
ROICexgc growth 3Y-21.36%
ROICexgc 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 | 2.56 |
F-Score8
WACC7.35%
ROIC/WACC1.39
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 Y46.62%
EPS Next 2Y29.78%
EPS Next 3Y32.67%
EPS Next 5Y24.35%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%35.68%
Revenue Next Year19.4%
Revenue Next 2Y10.87%
Revenue Next 3Y7.11%
Revenue Next 5Y8.04%
EBIT growth 1Y25.39%
EBIT growth 3Y-15.42%
EBIT growth 5Y64.86%
EBIT Next Year170.14%
EBIT Next 3Y44.79%
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%
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 8 / 10 to ARX.CA.
What is the valuation status for ARX stock?
ChartMill assigns a valuation rating of 8 / 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 9 / 10.
Can you provide the PE and PB ratios for ARX stock?
The Price/Earnings (PE) ratio for ARC RESOURCES LTD (ARX.CA) is 10.12 and the Price/Book (PB) ratio is 1.81.
What is the expected EPS growth for ARC RESOURCES LTD (ARX.CA) stock?
The Earnings per Share (EPS) of ARC RESOURCES LTD (ARX.CA) is expected to grow by 46.62% in the next year.