ARCOSA INC (ACA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACA - US0396531008 - Common Stock
113.5 USD
-3.17 (-2.72%)
112.4 USD
-1.1 (-0.97%)
We assign a fundamental rating of 5 out of 10 to ACA. ACA was compared to 55 industry peers in the Construction & Engineering industry. ACA has only an average score on both its financial health and profitability. ACA has a correct valuation and a medium growth rate.
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.
- ACA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 2.94%, ACA perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
- ACA has a Return On Equity (5.75%) which is comparable to the rest of the industry.
- ACA has a Return On Invested Capital of 4.99%. This is comparable to the rest of the industry: ACA outperforms 47.27% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ACA is significantly below the industry average of 15.97%.
- The last Return On Invested Capital (4.99%) for ACA is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.75% | ||
| ROIC | 4.99% |
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
- ACA has a Profit Margin of 5.25%. This is in the better half of the industry: ACA outperforms 63.64% of its industry peers.
- ACA's Profit Margin has declined in the last couple of years.
- ACA has a better Operating Margin (10.27%) than 72.73% of its industry peers.
- ACA's Operating Margin has declined in the last couple of years.
- ACA has a better Gross Margin (21.61%) than 65.45% of its industry peers.
- ACA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.27% | ||
| PM (TTM) | 5.25% | ||
| GM | 21.61% |
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
- The number of shares outstanding for ACA has been increased compared to 5 years ago.
- The debt/assets ratio for ACA is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.49 indicates that ACA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ACA has a Altman-Z score (2.49) which is in line with its industry peers.
- The Debt to FCF ratio of ACA is 5.03, which is a neutral value as it means it would take ACA, 5.03 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.03, ACA is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- A Debt/Equity ratio of 0.61 indicates that ACA is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.61, ACA is in line with its industry, outperforming 58.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.51
WACC9.72%
2.3 Liquidity
- ACA has a Current Ratio of 2.02. This indicates that ACA is financially healthy and has no problem in meeting its short term obligations.
- ACA has a Current ratio of 2.02. This is amongst the best in the industry. ACA outperforms 87.27% of its industry peers.
- A Quick Ratio of 1.30 indicates that ACA should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.30, ACA is in line with its industry, outperforming 56.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- ACA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.03%, which is quite good.
- The Earnings Per Share has been growing slightly by 5.16% on average over the past years.
- The Revenue has grown by 13.96% 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)17.03%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%71.43%
Revenue 1Y (TTM)13.96%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%24.58%
3.2 Future
- Based on estimates for the next years, ACA will show a very strong growth in Earnings Per Share. The EPS will grow by 22.53% on average per year.
- Based on estimates for the next years, ACA will show a small growth in Revenue. The Revenue will grow by 7.33% on average per year.
EPS Next Y42.05%
EPS Next 2Y27.53%
EPS Next 3Y22.53%
EPS Next 5YN/A
Revenue Next Year10.93%
Revenue Next 2Y8.42%
Revenue Next 3Y7.33%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 30.03, which means the current valuation is very expensive for ACA.
- ACA's Price/Earnings ratio is a bit cheaper when compared to the industry. ACA is cheaper than 67.27% of the companies in the same industry.
- ACA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- ACA is valuated rather expensively with a Price/Forward Earnings ratio of 23.19.
- ACA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ACA is cheaper than 74.55% of the companies in the same industry.
- ACA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.03 | ||
| Fwd PE | 23.19 |
4.2 Price Multiples
- 83.64% of the companies in the same industry are more expensive than ACA, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ACA is valued cheaper than 87.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.7 | ||
| EV/EBITDA | 13.4 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ACA's earnings are expected to grow with 22.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)5.81
EPS Next 2Y27.53%
EPS Next 3Y22.53%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.17%, ACA is not a good candidate for dividend investing.
- ACA's Dividend Yield is a higher than the industry average which is at 0.44.
- Compared to an average S&P500 Dividend Yield of 1.81, ACA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
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
- 6.66% of the earnings are spent on dividend by ACA. This is a low number and sustainable payout ratio.
DP6.66%
EPS Next 2Y27.53%
EPS Next 3Y22.53%
ARCOSA INC / ACA FAQ
Can you provide the ChartMill fundamental rating for ARCOSA INC?
ChartMill assigns a fundamental rating of 5 / 10 to ACA.
Can you provide the valuation status for ARCOSA INC?
ChartMill assigns a valuation rating of 6 / 10 to ARCOSA INC (ACA). This can be considered as Fairly Valued.
How profitable is ARCOSA INC (ACA) stock?
ARCOSA INC (ACA) has a profitability rating of 5 / 10.
What is the valuation of ARCOSA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARCOSA INC (ACA) is 30.03 and the Price/Book (PB) ratio is 2.15.
How financially healthy is ARCOSA INC?
The financial health rating of ARCOSA INC (ACA) is 5 / 10.