ARCOSA INC (ACA) Stock Fundamental Analysis
NYSE:ACA - New York Stock Exchange, Inc. - US0396531008 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ACA. ACA was compared to 51 industry peers in the Construction & Engineering industry. ACA has only an average score on both its financial health and profitability. ACA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ACA had positive earnings in the past year.
ACA had a positive operating cash flow in the past year.
Each year in the past 5 years ACA has been profitable.
In the past 5 years ACA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ACA (1.91%) is comparable to the rest of the industry.
The Return On Equity of ACA (3.86%) is comparable to the rest of the industry.
ACA has a Return On Invested Capital (3.40%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACA is significantly below the industry average of 12.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 3.86% | ||
| ROIC | 3.4% |
ROA(3y)4.56%
ROA(5y)3.97%
ROE(3y)7.3%
ROE(5y)6.21%
ROIC(3y)3.99%
ROIC(5y)4.04%
1.3 Margins
Looking at the Profit Margin, with a value of 3.65%, ACA is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
ACA's Profit Margin has declined in the last couple of years.
ACA has a Operating Margin of 7.60%. This is in the better half of the industry: ACA outperforms 70.59% of its industry peers.
ACA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 20.05%, ACA is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
ACA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.6% | ||
| PM (TTM) | 3.65% | ||
| GM | 20.05% |
OM growth 3Y11.96%
OM growth 5Y-2.91%
PM growth 3Y2.37%
PM growth 5Y-10.81%
GM growth 3Y3.69%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
ACA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ACA has more shares outstanding
ACA has more shares outstanding than it did 5 years ago.
ACA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.86 indicates that ACA is not a great score, but indicates only limited risk for bankruptcy at the moment.
ACA's Altman-Z score of 1.86 is in line compared to the rest of the industry. ACA outperforms 45.10% of its industry peers.
The Debt to FCF ratio of ACA is 5.41, which is a neutral value as it means it would take ACA, 5.41 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.41, ACA perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
ACA has a Debt/Equity ratio of 0.69. This is a neutral value indicating ACA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, ACA is in line with its industry, outperforming 49.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.39
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.85 indicates that ACA should not have too much problems paying its short term obligations.
ACA has a better Current ratio (1.85) than 88.24% of its industry peers.
A Quick Ratio of 1.15 indicates that ACA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, ACA perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
ACA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.81%.
The Earnings Per Share has been growing slightly by 5.16% on average over the past years.
The Revenue has grown by 11.35% in the past year. This is quite good.
Measured over the past years, ACA shows a quite strong growth in Revenue. The Revenue has been growing by 8.15% on average per year.
EPS 1Y (TTM)-6.81%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%-32.35%
Revenue 1Y (TTM)11.35%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%14.43%
3.2 Future
The Earnings Per Share is expected to grow by 22.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.75% on average over the next years.
EPS Next Y23.48%
EPS Next 2Y25.09%
EPS Next 3Y22.44%
EPS Next 5YN/A
Revenue Next Year11.31%
Revenue Next 2Y8.91%
Revenue Next 3Y7.75%
Revenue Next 5YN/A
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.49, which means the current valuation is very expensive for ACA.
Compared to the rest of the industry, the Price/Earnings ratio of ACA is on the same level as its industry peers.
ACA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.33.
The Price/Forward Earnings ratio is 20.64, which indicates a rather expensive current valuation of ACA.
ACA's Price/Forward Earnings is on the same level as the industry average.
ACA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 20.64 |
4.2 Price Multiples
ACA's Enterprise Value to EBITDA ratio is in line with the industry average.
ACA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACA is cheaper than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.98 | ||
| EV/EBITDA | 13.22 |
4.3 Compensation for Growth
ACA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ACA's earnings are expected to grow with 22.44% in the coming years.
PEG (NY)1.09
PEG (5Y)4.94
EPS Next 2Y25.09%
EPS Next 3Y22.44%
5. Dividend
5.1 Amount
With a yearly dividend of 0.26%, ACA is not a good candidate for dividend investing.
In the last 3 months the price of ACA has falen by -23.45%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ACA's Dividend Yield is a higher than the industry average which is at 2.05.
With a Dividend Yield of 0.26, ACA pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
5.2 History
The dividend of ACA decreases each year by -0.48%.
ACA has been paying a dividend for over 5 years, so it has already some track record.
As ACA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-0.48%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
ACA pays out 10.35% of its income as dividend. This is a sustainable payout ratio.
DP10.35%
EPS Next 2Y25.09%
EPS Next 3Y22.44%
76.73
+1.74 (+2.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.27%
Inst Owner Change0.22%
Ins Owners1.26%
Ins Owner Change3.82%
Market Cap3.74B
Analysts86
Price Target114.07 (48.66%)
Short Float %1.45%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Yearly Dividend0.2
Dividend Growth(5Y)-0.48%
DP10.35%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.9%
Min EPS beat(2)-40.32%
Max EPS beat(2)4.52%
EPS beat(4)3
Avg EPS beat(4)2.74%
Min EPS beat(4)-40.32%
Max EPS beat(4)38.46%
EPS beat(8)7
Avg EPS beat(8)22.1%
EPS beat(12)11
Avg EPS beat(12)30.68%
EPS beat(16)15
Avg EPS beat(16)33.49%
Revenue beat(2)0
Avg Revenue beat(2)-5.77%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)-4.44%
Revenue beat(4)1
Avg Revenue beat(4)-2.47%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)2.17%
Revenue beat(8)4
Avg Revenue beat(8)0.41%
Revenue beat(12)8
Avg Revenue beat(12)2.41%
Revenue beat(16)12
Avg Revenue beat(16)2.69%
PT rev (1m)-4.96%
PT rev (3m)-3.59%
EPS NQ rev (1m)-12.74%
EPS NQ rev (3m)-65.9%
EPS NY rev (1m)-15.32%
EPS NY rev (3m)-16.76%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 20.64 | ||
| P/S | 1.46 | ||
| P/FCF | 11.98 | ||
| P/OCF | 7.46 | ||
| P/B | 1.54 | ||
| P/tB | 5.14 | ||
| EV/EBITDA | 13.22 |
EPS(TTM)3.01
EY3.92%
EPS(NY)3.72
Fwd EY4.84%
FCF(TTM)6.4
FCFY8.34%
OCF(TTM)10.29
OCFY13.41%
SpS52.68
BVpS49.78
TBVpS14.94
PEG (NY)1.09
PEG (5Y)4.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 3.86% | ||
| ROCE | 4.44% | ||
| ROIC | 3.4% | ||
| ROICexc | 3.55% | ||
| ROICexgc | 5.96% | ||
| OM | 7.6% | ||
| PM (TTM) | 3.65% | ||
| GM | 20.05% | ||
| FCFM | 12.15% |
ROA(3y)4.56%
ROA(5y)3.97%
ROE(3y)7.3%
ROE(5y)6.21%
ROIC(3y)3.99%
ROIC(5y)4.04%
ROICexc(3y)4.17%
ROICexc(5y)4.21%
ROICexgc(3y)7.17%
ROICexgc(5y)7.33%
ROCE(3y)5.21%
ROCE(5y)5.27%
ROICexcg growth 3Y4.01%
ROICexcg growth 5Y-10.09%
ROICexc growth 3Y4.98%
ROICexc growth 5Y-11.63%
OM growth 3Y11.96%
OM growth 5Y-2.91%
PM growth 3Y2.37%
PM growth 5Y-10.81%
GM growth 3Y3.69%
GM growth 5Y0.93%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.41 | ||
| Debt/EBITDA | 4.3 | ||
| Cap/Depr | 97.28% | ||
| Cap/Sales | 7.38% | ||
| Interest Coverage | 3.88 | ||
| Cash Conversion | 128.65% | ||
| Profit Quality | 333.3% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 1.86 |
F-Score5
WACC8.69%
ROIC/WACC0.39
Cap/Depr(3y)104.81%
Cap/Depr(5y)89.02%
Cap/Sales(3y)7.45%
Cap/Sales(5y)6.15%
Profit Quality(3y)128.08%
Profit Quality(5y)133.99%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.81%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%-32.35%
EPS Next Y23.48%
EPS Next 2Y25.09%
EPS Next 3Y22.44%
EPS Next 5YN/A
Revenue 1Y (TTM)11.35%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%14.43%
Revenue Next Year11.31%
Revenue Next 2Y8.91%
Revenue Next 3Y7.75%
Revenue Next 5YN/A
EBIT growth 1Y6.84%
EBIT growth 3Y20.99%
EBIT growth 5Y5.01%
EBIT Next Year133%
EBIT Next 3Y47.68%
EBIT Next 5YN/A
FCF growth 1Y443.13%
FCF growth 3Y56.55%
FCF growth 5Y2.7%
OCF growth 1Y92.34%
OCF growth 3Y44.47%
OCF growth 5Y6.95%