ARCOSA INC (ACA) Stock Fundamental Analysis
NYSE:ACA - New York Stock Exchange, Inc. - US0396531008 - Common Stock - Currency: USD
ACA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 45 industry peers in the Construction & Engineering industry. ACA has only an average score on both its financial health and profitability. ACA is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make ACA a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
ACA had positive earnings in the past year.
In the past year ACA had a positive cash flow from operations.
In the past 5 years ACA has always been profitable.
In the past 5 years ACA always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.95%, ACA perfoms like the industry average, outperforming 56.82% of the companies in the same industry.
ACA has a Return On Equity (5.28%) which is in line with its industry peers.
The Return On Invested Capital of ACA (3.96%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACA is significantly below the industry average of 11.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 5.28% | ||
| ROIC | 3.96% |
ROA(3y)4.65%
ROA(5y)4.56%
ROE(3y)7.19%
ROE(5y)6.69%
ROIC(3y)4%
ROIC(5y)4.69%
1.3 Margins
Looking at the Profit Margin, with a value of 5.17%, ACA is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Profit Margin of ACA has grown nicely.
Looking at the Operating Margin, with a value of 7.87%, ACA is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
ACA's Operating Margin has been stable in the last couple of years.
ACA has a better Gross Margin (19.84%) than 61.36% of its industry peers.
In the last couple of years the Gross Margin of ACA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.87% | ||
| PM (TTM) | 5.17% | ||
| GM | 19.84% |
OM growth 3Y-1.2%
OM growth 5Y-0.43%
PM growth 3Y8.07%
PM growth 5Y5.88%
GM growth 3Y-0.86%
GM growth 5Y0.64%
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
The number of shares outstanding for ACA has been reduced compared to 5 years ago.
The debt/assets ratio for ACA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.78 indicates that ACA 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 2.78, ACA is in line with its industry, outperforming 50.00% of the companies in the same industry.
ACA has a debt to FCF ratio of 10.23. This is a negative value and a sign of low solvency as ACA would need 10.23 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.23, ACA is in line with its industry, outperforming 45.45% of the companies in the same industry.
ACA has a Debt/Equity ratio of 0.51. This is a neutral value indicating ACA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, ACA perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 10.23 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.33
WACC11.87%
2.3 Liquidity
ACA has a Current Ratio of 3.61. This indicates that ACA is financially healthy and has no problem in meeting its short term obligations.
ACA has a better Current ratio (3.61) than 97.73% of its industry peers.
A Quick Ratio of 2.77 indicates that ACA has no problem at all paying its short term obligations.
ACA has a better Quick ratio (2.77) than 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.61 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
ACA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.77%, which is quite good.
ACA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.25% yearly.
ACA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.68%.
ACA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.58% yearly.
EPS 1Y (TTM)15.77%
EPS 3Y9.65%
EPS 5Y16.25%
EPS Q2Q%24.66%
Revenue 1Y (TTM)11.68%
Revenue growth 3Y6.04%
Revenue growth 5Y9.58%
Sales Q2Q%8.23%
3.2 Future
Based on estimates for the next years, ACA will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.41% on average per year.
ACA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.79% yearly.
EPS Next Y4.31%
EPS Next 2Y17.57%
EPS Next 3Y18.41%
EPS Next 5YN/A
Revenue Next Year14.07%
Revenue Next 2Y13.96%
Revenue Next 3Y11.79%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.48, which means the current valuation is very expensive for ACA.
ACA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.51. ACA is around the same levels.
With a Price/Forward Earnings ratio of 22.77, ACA is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as ACA.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, ACA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.48 | ||
| Fwd PE | 22.77 |
4.2 Price Multiples
ACA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACA is cheaper than 63.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.03 | ||
| EV/EBITDA | 14.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ACA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ACA's earnings are expected to grow with 18.41% in the coming years.
PEG (NY)7.3
PEG (5Y)1.94
EPS Next 2Y17.57%
EPS Next 3Y18.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, ACA is not a good candidate for dividend investing.
ACA's Dividend Yield is a higher than the industry average which is at 1.56.
Compared to an average S&P500 Dividend Yield of 2.27, ACA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
5.2 History
ACA has been paying a dividend for over 5 years, so it has already some track record.
ACA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
ACA pays out 7.63% of its income as dividend. This is a sustainable payout ratio.
DP7.63%
EPS Next 2Y17.57%
EPS Next 3Y18.41%
ARCOSA INC
NYSE:ACA (1/30/2025, 7:00:00 PM)
After market: 101.68 0 (0%)101.68
+2.63 (+2.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners92.12%
Inst Owner Change0.01%
Ins Owners1.26%
Ins Owner Change0.8%
Market Cap4.96B
Analysts86
Price Target118.32 (16.37%)
Short Float %1.98%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP7.63%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.41%
Min EPS beat(2)4.52%
Max EPS beat(2)8.29%
EPS beat(4)4
Avg EPS beat(4)22.45%
Min EPS beat(4)4.52%
Max EPS beat(4)38.53%
EPS beat(8)8
Avg EPS beat(8)28.78%
EPS beat(12)12
Avg EPS beat(12)41.11%
EPS beat(16)15
Avg EPS beat(16)34.68%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)-0.52%
Revenue beat(4)2
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)3.95%
Revenue beat(8)5
Avg Revenue beat(8)1.43%
Revenue beat(12)9
Avg Revenue beat(12)3.09%
Revenue beat(16)12
Avg Revenue beat(16)2.85%
PT rev (1m)5.78%
PT rev (3m)6.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.48 | ||
| Fwd PE | 22.77 | ||
| P/S | 2 | ||
| P/FCF | 41.03 | ||
| P/OCF | 15.7 | ||
| P/B | 2.04 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 14.32 |
EPS(TTM)3.23
EY3.18%
EPS(NY)4.47
Fwd EY4.39%
FCF(TTM)2.48
FCFY2.44%
OCF(TTM)6.48
OCFY6.37%
SpS50.96
BVpS49.9
TBVpS22.93
PEG (NY)7.3
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 5.28% | ||
| ROCE | 4.99% | ||
| ROIC | 3.96% | ||
| ROICexc | 4.91% | ||
| ROICexgc | 8.4% | ||
| OM | 7.87% | ||
| PM (TTM) | 5.17% | ||
| GM | 19.84% | ||
| FCFM | 4.86% |
ROA(3y)4.65%
ROA(5y)4.56%
ROE(3y)7.19%
ROE(5y)6.69%
ROIC(3y)4%
ROIC(5y)4.69%
ROICexc(3y)4.16%
ROICexc(5y)4.99%
ROICexgc(3y)7.2%
ROICexgc(5y)8.47%
ROCE(3y)5.03%
ROCE(5y)5.89%
ROICexcg growth 3Y-7.3%
ROICexcg growth 5Y1.63%
ROICexc growth 3Y-5.39%
ROICexc growth 5Y-1.07%
OM growth 3Y-1.2%
OM growth 5Y-0.43%
PM growth 3Y8.07%
PM growth 5Y5.88%
GM growth 3Y-0.86%
GM growth 5Y0.64%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 10.23 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 111.3% | ||
| Cap/Sales | 7.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.18% | ||
| Profit Quality | 94.09% | ||
| Current Ratio | 3.61 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 2.78 |
F-Score6
WACC11.87%
ROIC/WACC0.33
Cap/Depr(3y)92.04%
Cap/Depr(5y)89.47%
Cap/Sales(3y)6.38%
Cap/Sales(5y)5.66%
Profit Quality(3y)56.19%
Profit Quality(5y)116.06%
High Growth Momentum
Growth
EPS 1Y (TTM)15.77%
EPS 3Y9.65%
EPS 5Y16.25%
EPS Q2Q%24.66%
EPS Next Y4.31%
EPS Next 2Y17.57%
EPS Next 3Y18.41%
EPS Next 5YN/A
Revenue 1Y (TTM)11.68%
Revenue growth 3Y6.04%
Revenue growth 5Y9.58%
Sales Q2Q%8.23%
Revenue Next Year14.07%
Revenue Next 2Y13.96%
Revenue Next 3Y11.79%
Revenue Next 5YN/A
EBIT growth 1Y21.25%
EBIT growth 3Y4.76%
EBIT growth 5Y9.12%
EBIT Next Year109.46%
EBIT Next 3Y43.65%
EBIT Next 5YN/A
FCF growth 1Y-25.42%
FCF growth 3Y-31.36%
FCF growth 5Y-4.84%
OCF growth 1Y16.05%
OCF growth 3Y0.14%
OCF growth 5Y17.11%