ARCOSA INC (ACA) Stock Fundamental Analysis
NYSE:ACA - New York Stock Exchange, Inc. - US0396531008 - Common Stock - Currency: USD
Taking everything into account, ACA scores 4 out of 10 in our fundamental rating. ACA was compared to 52 industry peers in the Construction & Engineering industry. While ACA is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
ACA has a Return On Assets (1.58%) which is comparable to the rest of the industry.
ACA has a Return On Equity of 3.18%. This is comparable to the rest of the industry: ACA outperforms 40.38% of its industry peers.
ACA has a Return On Invested Capital (3.54%) which is in line with its industry peers.
ACA had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 16.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 3.18% | ||
| ROIC | 3.54% |
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 (3.00%) which is in line with its industry peers.
ACA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.85%, ACA is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
In the last couple of years the Operating Margin of ACA has declined.
The Gross Margin of ACA (20.32%) is better than 65.38% of its industry peers.
ACA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.85% | ||
| PM (TTM) | 3% | ||
| GM | 20.32% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACA is destroying value.
The number of shares outstanding for ACA has been increased compared to 1 year ago.
The number of shares outstanding for ACA has been increased compared to 5 years ago.
ACA has a worse debt/assets ratio than last year.
2.2 Solvency
ACA has an Altman-Z score of 2.04. This is not the best score and indicates that ACA is in the grey zone with still only limited risk for bankruptcy at the moment.
ACA has a Altman-Z score of 2.04. This is comparable to the rest of the industry: ACA outperforms 46.15% of its industry peers.
The Debt to FCF ratio of ACA is 6.70, which is on the high side as it means it would take ACA, 6.70 years of fcf income to pay off all of its debts.
ACA has a Debt to FCF ratio (6.70) which is in line with its industry peers.
A Debt/Equity ratio of 0.68 indicates that ACA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, ACA perfoms like the industry average, outperforming 51.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.7 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.37
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.98 indicates that ACA should not have too much problems paying its short term obligations.
ACA has a better Current ratio (1.98) than 92.31% of its industry peers.
A Quick Ratio of 1.27 indicates that ACA should not have too much problems paying its short term obligations.
ACA has a Quick ratio of 1.27. This is comparable to the rest of the industry: ACA outperforms 59.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
ACA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.48%.
The Earnings Per Share has been growing slightly by 5.16% on average over the past years.
ACA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.44%.
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)-4.48%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%-32.88%
Revenue 1Y (TTM)10.44%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%5.58%
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 Y28.38%
EPS Next 2Y24.97%
EPS Next 3Y22.44%
EPS Next 5YN/A
Revenue Next Year11.12%
Revenue Next 2Y8.56%
Revenue Next 3Y7.75%
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.
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
ACA is valuated quite expensively with a Price/Earnings ratio of 32.37.
Compared to the rest of the industry, the Price/Earnings ratio of ACA is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.28, ACA is valued at the same level.
A Price/Forward Earnings ratio of 19.08 indicates a rather expensive valuation of ACA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACA indicates a somewhat cheap valuation: ACA is cheaper than 75.00% of the companies listed in the same industry.
ACA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 19.08 |
4.2 Price Multiples
ACA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACA is cheaper than 73.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.41 | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ACA's earnings are expected to grow with 22.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)6.27
EPS Next 2Y24.97%
EPS Next 3Y22.44%
5. Dividend
5.1 Amount
With a yearly dividend of 0.23%, ACA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.75, ACA pays a better dividend. On top of this ACA pays more dividend than 80.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ACA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
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
12.55% of the earnings are spent on dividend by ACA. This is a low number and sustainable payout ratio.
DP12.55%
EPS Next 2Y24.97%
EPS Next 3Y22.44%
89.67
+1.82 (+2.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.6%
Inst Owner Change7.66%
Ins Owners1.85%
Ins Owner Change10.95%
Market Cap4.38B
Analysts86
Price Target114.07 (27.21%)
Short Float %2.41%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.2
Dividend Growth(5Y)-0.48%
DP12.55%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)60.96%
Min EPS beat(2)-40.32%
Max EPS beat(2)162.24%
EPS beat(4)3
Avg EPS beat(4)33.68%
Min EPS beat(4)-40.32%
Max EPS beat(4)162.24%
EPS beat(8)7
Avg EPS beat(8)30.95%
EPS beat(12)11
Avg EPS beat(12)37.09%
EPS beat(16)15
Avg EPS beat(16)39.57%
Revenue beat(2)1
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-4.44%
Max Revenue beat(2)1.83%
Revenue beat(4)1
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)1.83%
Revenue beat(8)4
Avg Revenue beat(8)-0.45%
Revenue beat(12)8
Avg Revenue beat(12)1.73%
Revenue beat(16)12
Avg Revenue beat(16)2.81%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.12%
EPS NY rev (1m)0%
EPS NY rev (3m)3.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 19.08 | ||
| P/S | 1.68 | ||
| P/FCF | 17.41 | ||
| P/OCF | 10.4 | ||
| P/B | 1.78 | ||
| P/tB | 5.61 | ||
| EV/EBITDA | 14.16 |
EPS(TTM)2.77
EY3.09%
EPS(NY)4.7
Fwd EY5.24%
FCF(TTM)5.15
FCFY5.75%
OCF(TTM)8.62
OCFY9.61%
SpS53.32
BVpS50.28
TBVpS15.98
PEG (NY)1.14
PEG (5Y)6.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 3.18% | ||
| ROCE | 4.62% | ||
| ROIC | 3.54% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 6.07% | ||
| OM | 7.85% | ||
| PM (TTM) | 3% | ||
| GM | 20.32% | ||
| FCFM | 9.66% |
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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.7 | ||
| Debt/EBITDA | 4.08 | ||
| Cap/Depr | 82.26% | ||
| Cap/Sales | 6.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.58% | ||
| Profit Quality | 322.02% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.04 |
F-Score5
WACC9.65%
ROIC/WACC0.37
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)-4.48%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%-32.88%
EPS Next Y28.38%
EPS Next 2Y24.97%
EPS Next 3Y22.44%
EPS Next 5YN/A
Revenue 1Y (TTM)10.44%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%5.58%
Revenue Next Year11.12%
Revenue Next 2Y8.56%
Revenue Next 3Y7.75%
Revenue Next 5YN/A
EBIT growth 1Y14.13%
EBIT growth 3Y20.99%
EBIT growth 5Y5.01%
EBIT Next Year134.84%
EBIT Next 3Y47.68%
EBIT Next 5YN/A
FCF growth 1Y1120.87%
FCF growth 3Y56.55%
FCF growth 5Y2.7%
OCF growth 1Y137.61%
OCF growth 3Y44.47%
OCF growth 5Y6.95%