ARC RESOURCES LTD (ARX.CA) Fundamental Analysis & Valuation
TSX:ARX • CA00208D4084
27.57 CAD
-0.16 (-0.58%)
Last: Mar 13, 2026, 07:00 PM
This ARX.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall ARX gets a fundamental rating of 6 out of 10. We evaluated ARX against 212 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. ARX is not valued too expensively and it also shows a decent growth rate.
1. ARX.CA Profitability Analysis
1.1 Basic Checks
- ARX had positive earnings in the past year.
- In the past year ARX had a positive cash flow from operations.
- Each year in the past 5 years ARX has been profitable.
- ARX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ARX has a better Return On Assets (8.33%) than 92.45% of its industry peers.
- ARX has a Return On Equity of 15.43%. This is amongst the best in the industry. ARX outperforms 92.92% of its industry peers.
- The Return On Invested Capital of ARX (9.93%) is better than 93.87% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ARX is above the industry average of 6.67%.
- 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 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 has a better Profit Margin (20.92%) than 87.74% of its industry peers.
- In the last couple of years the Profit Margin of ARX has declined.
- ARX's Operating Margin of 28.98% is amongst the best of the industry. ARX outperforms 83.49% of its industry peers.
- In the last couple of years the Operating Margin of ARX has grown nicely.
- With an excellent Gross Margin value of 68.82%, ARX belongs to the best of the industry, outperforming 84.91% 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
- 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.
- Compared to 1 year ago, ARX has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.30 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 2.30, ARX is in the better half of the industry, outperforming 72.17% of the companies in the same industry.
- 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 86.32% of its industry peers.
- A Debt/Equity ratio of 0.41 indicates that ARX is not too dependend on debt financing.
- ARX's Debt to Equity ratio of 0.41 is in line compared to the rest of the industry. ARX outperforms 54.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.37
WACC7.23%
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.
- The Current ratio of ARX (0.70) is comparable to the rest of the industry.
- A Quick Ratio of 0.69 indicates that ARX may have some problems paying its short term obligations.
- With a Quick ratio value of 0.69, ARX perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.69 |
3. ARX.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 15.87% over the past year.
- ARX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.81% yearly.
- The Revenue has grown by 19.08% in the past year. This is quite good.
- 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.
- The Revenue is expected to grow by 1.72% on average over the next years.
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
- 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. ARX.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 12.59, which indicates a correct valuation of ARX.
- Based on the Price/Earnings ratio, ARX is valued a bit cheaper than the industry average as 73.11% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 25.70, ARX is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 13.59, the valuation of ARX can be described as correct.
- 73.58% of the companies in the same industry are more expensive than ARX, based on the Price/Forward Earnings ratio.
- ARX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.59 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaper than 88.21% of the companies in the same industry.
- ARX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARX is cheaper than 82.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.09 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
- ARX has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as ARX's earnings are expected to decrease with -3.27% in the coming years.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-2.61%
EPS Next 3Y-3.27%
5. ARX.CA Dividend Analysis
5.1 Amount
- ARX has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 4.17, ARX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ARX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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 2Y-2.61%
EPS Next 3Y-3.27%
ARX.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:ARX (3/13/2026, 7:00:00 PM)
27.57
-0.16 (-0.58%)
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 Owners42.18%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap15.75B
Revenue(TTM)6.10B
Net Income(TTM)1.28B
Analysts78.4
Price Target29.33 (6.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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)-4.6%
EPS NQ rev (3m)-16.3%
EPS NY rev (1m)-6.72%
EPS NY rev (3m)-20.54%
Revenue NQ rev (1m)1.86%
Revenue NQ rev (3m)5.05%
Revenue NY rev (1m)-2.6%
Revenue NY rev (3m)-2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.59 | ||
| Fwd PE | 13.59 | ||
| P/S | 2.58 | ||
| P/FCF | 13.09 | ||
| P/OCF | 5.09 | ||
| P/B | 1.91 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 5.96 |
EPS(TTM)2.19
EY7.94%
EPS(NY)2.03
Fwd EY7.36%
FCF(TTM)2.11
FCFY7.64%
OCF(TTM)5.42
OCFY19.65%
SpS10.67
BVpS14.47
TBVpS14.03
PEG (NY)N/A
PEG (5Y)0.38
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 | 2.3 |
F-Score6
WACC7.23%
ROIC/WACC1.37
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 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%.