ARCOSA INC (ACA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACA - US0396531008 - Common Stock
111.42 USD
+3.02 (+2.79%)
111.42 USD
0 (0%)
ACA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 54 industry peers in the Construction & Engineering industry. ACA has an average financial health and profitability rating. ACA is not valued too expensively and it also shows a decent growth rate.
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.
ACA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACA has a Return On Assets of 2.94%. This is comparable to the rest of the industry: ACA outperforms 46.30% of its industry peers.
The Return On Equity of ACA (5.75%) is comparable to the rest of the industry.
The Return On Invested Capital of ACA (4.99%) is comparable to the rest of the industry.
ACA had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 15.99%.
The 3 year average ROIC (3.99%) for ACA is below the current ROIC(4.99%), indicating increased profibility in the last year.
| 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 better Profit Margin (5.25%) than 62.96% of its industry peers.
In the last couple of years the Profit Margin of ACA has declined.
ACA's Operating Margin of 10.27% is fine compared to the rest of the industry. ACA outperforms 72.22% of its industry peers.
In the last couple of years the Operating Margin of ACA has declined.
The Gross Margin of ACA (21.61%) is better than 64.81% 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.
The number of shares outstanding for ACA has been increased compared to 1 year ago.
Compared to 5 years ago, ACA has more shares outstanding
The debt/assets ratio for ACA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.43 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 2.43, ACA is in line with its industry, outperforming 42.59% of the companies in the same industry.
ACA has a debt to FCF ratio of 5.03. This is a neutral value as ACA would need 5.03 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.03, ACA is doing good in the industry, outperforming 62.96% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that ACA is somewhat dependend on debt financing.
ACA has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.49
WACC10.11%
2.3 Liquidity
A Current Ratio of 2.02 indicates that ACA has no problem at all paying its short term obligations.
ACA's Current ratio of 2.02 is amongst the best of the industry. ACA outperforms 88.89% of its industry peers.
ACA has a Quick Ratio of 1.30. This is a normal value and indicates that ACA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ACA (1.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.03% over the past year.
The Earnings Per Share has been growing slightly by 5.16% on average over the past years.
Looking at the last year, ACA shows a quite strong growth in Revenue. The Revenue has grown by 13.96% in the last year.
ACA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.15% yearly.
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 7.41% on average per year.
EPS Next Y41.21%
EPS Next 2Y27.26%
EPS Next 3Y22.53%
EPS Next 5YN/A
Revenue Next Year10.81%
Revenue Next 2Y8.38%
Revenue Next 3Y7.41%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 29.48 indicates a quite expensive valuation of ACA.
64.81% of the companies in the same industry are more expensive than ACA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ACA is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.86, the valuation of ACA can be described as rather expensive.
ACA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ACA is cheaper than 72.22% of the companies in the same industry.
ACA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.48 | ||
| Fwd PE | 22.86 |
4.2 Price Multiples
ACA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACA is cheaper than 81.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACA is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.37 | ||
| EV/EBITDA | 12.92 |
4.3 Compensation for Growth
ACA's 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)0.72
PEG (5Y)5.71
EPS Next 2Y27.26%
EPS Next 3Y22.53%
5. Dividend
5.1 Amount
With a yearly dividend of 0.18%, ACA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.41, ACA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, ACA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
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 2Y27.26%
EPS Next 3Y22.53%
111.42
+3.02 (+2.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners94.81%
Inst Owner Change0%
Ins Owners1.8%
Ins Owner Change-1.18%
Market Cap5.47B
Revenue(TTM)2.83B
Net Income(TTM)148.60M
Analysts86
Price Target122.2 (9.68%)
Short Float %2.27%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend0.2
Dividend Growth(5Y)-0.48%
DP6.66%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.63%
Min EPS beat(2)15.61%
Max EPS beat(2)17.65%
EPS beat(4)3
Avg EPS beat(4)38.79%
Min EPS beat(4)-40.32%
Max EPS beat(4)162.24%
EPS beat(8)7
Avg EPS beat(8)30.62%
EPS beat(12)11
Avg EPS beat(12)32.12%
EPS beat(16)15
Avg EPS beat(16)40.53%
Revenue beat(2)1
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)1.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-4.44%
Max Revenue beat(4)1.83%
Revenue beat(8)4
Avg Revenue beat(8)-0.83%
Revenue beat(12)7
Avg Revenue beat(12)0.53%
Revenue beat(16)11
Avg Revenue beat(16)1.99%
PT rev (1m)-0.03%
PT rev (3m)3.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.23%
EPS NY rev (1m)0%
EPS NY rev (3m)5.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.48 | ||
| Fwd PE | 22.86 | ||
| P/S | 1.93 | ||
| P/FCF | 17.37 | ||
| P/OCF | 11.65 | ||
| P/B | 2.11 | ||
| P/tB | 5.95 | ||
| EV/EBITDA | 12.92 |
EPS(TTM)3.78
EY3.39%
EPS(NY)4.87
Fwd EY4.38%
FCF(TTM)6.41
FCFY5.76%
OCF(TTM)9.57
OCFY8.59%
SpS57.76
BVpS52.7
TBVpS18.72
PEG (NY)0.72
PEG (5Y)5.71
Graham Number66.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.75% | ||
| ROCE | 6.5% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.24% | ||
| ROICexgc | 8.62% | ||
| OM | 10.27% | ||
| PM (TTM) | 5.25% | ||
| GM | 21.61% | ||
| FCFM | 11.11% |
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%
ROICexgc growth 3Y4.01%
ROICexgc 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.03 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 68.36% | ||
| Cap/Sales | 5.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.74% | ||
| Profit Quality | 211.71% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.43 |
F-Score5
WACC10.11%
ROIC/WACC0.49
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)17.03%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%71.43%
EPS Next Y41.21%
EPS Next 2Y27.26%
EPS Next 3Y22.53%
EPS Next 5YN/A
Revenue 1Y (TTM)13.96%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%24.58%
Revenue Next Year10.81%
Revenue Next 2Y8.38%
Revenue Next 3Y7.41%
Revenue Next 5YN/A
EBIT growth 1Y48.65%
EBIT growth 3Y20.99%
EBIT growth 5Y5.01%
EBIT Next Year135.94%
EBIT Next 3Y39.06%
EBIT Next 5YN/A
FCF growth 1Y5015.62%
FCF growth 3Y56.55%
FCF growth 5Y2.7%
OCF growth 1Y146.35%
OCF growth 3Y44.47%
OCF growth 5Y6.95%
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 29.48 and the Price/Book (PB) ratio is 2.11.
How financially healthy is ARCOSA INC?
The financial health rating of ARCOSA INC (ACA) is 5 / 10.