ARCOSA INC (ACA) Stock Fundamental Analysis
USA - NYSE:ACA - US0396531008 - Common Stock
96.93 USD
+3.33 (+3.56%)
96.93 USD
0 (0%)
Overall ACA gets a fundamental rating of 5 out of 10. We evaluated ACA against 52 industry peers in the Construction & Engineering industry. ACA has only an average score on both its financial health and profitability. ACA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACA was profitable.
ACA had a positive operating cash flow in the past year.
ACA had positive earnings in each of the past 5 years.
ACA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.84%, ACA is in line with its industry, outperforming 44.23% of the companies in the same industry.
The Return On Equity of ACA (3.68%) is worse than 61.54% of its industry peers.
ACA has a Return On Invested Capital (4.09%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ACA is significantly below the industry average of 17.22%.
The 3 year average ROIC (3.99%) for ACA is below the current ROIC(4.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 3.68% | ||
| ROIC | 4.09% |
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 (3.45%) which is in line with its industry peers.
ACA's Profit Margin has declined in the last couple of years.
ACA's Operating Margin of 8.93% is fine compared to the rest of the industry. ACA outperforms 67.31% of its industry peers.
ACA's Operating Margin has declined in the last couple of years.
ACA's Gross Margin of 20.82% is fine compared to the rest of the industry. ACA outperforms 65.38% 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 | 8.93% | ||
| PM (TTM) | 3.45% | ||
| GM | 20.82% |
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 2.16. 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 (2.16) which is comparable to the rest of the industry.
ACA has a debt to FCF ratio of 5.72. This is a neutral value as ACA would need 5.72 years to pay back of all of its debts.
ACA has a Debt to FCF ratio (5.72) which is comparable to the rest of the industry.
ACA has a Debt/Equity ratio of 0.67. This is a neutral value indicating ACA is somewhat dependend on debt financing.
ACA's Debt to Equity ratio of 0.67 is in line compared to the rest of the industry. ACA outperforms 51.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.72 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.43
WACC9.59%
2.3 Liquidity
A Current Ratio of 2.12 indicates that ACA has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.12, ACA belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that ACA should not have too much problems paying its short term obligations.
ACA's Quick ratio of 1.35 is fine compared to the rest of the industry. ACA outperforms 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
ACA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.62%.
Measured over the past 5 years, ACA shows a small growth in Earnings Per Share. The EPS has been growing by 5.16% on average per year.
ACA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.78%.
The Revenue has been growing by 8.15% on average over the past years. This is quite good.
EPS 1Y (TTM)2.62%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%39.56%
Revenue 1Y (TTM)9.78%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%10.86%
3.2 Future
The Earnings Per Share is expected to grow by 22.40% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.56% on average over the next years.
EPS Next Y33.55%
EPS Next 2Y26.07%
EPS Next 3Y22.4%
EPS Next 5YN/A
Revenue Next Year10.47%
Revenue Next 2Y8.49%
Revenue Next 3Y6.56%
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
Based on the Price/Earnings ratio of 30.97, the valuation of ACA can be described as expensive.
ACA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ACA to the average of the S&P500 Index (27.41), we can say ACA is valued inline with the index average.
A Price/Forward Earnings ratio of 20.26 indicates a rather expensive valuation of ACA.
82.69% of the companies in the same industry are more expensive than ACA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ACA to the average of the S&P500 Index (22.88), we can say ACA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.97 | ||
| Fwd PE | 20.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACA is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACA indicates a somewhat cheap valuation: ACA is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.16 | ||
| EV/EBITDA | 13.39 |
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.
A more expensive valuation may be justified as ACA's earnings are expected to grow with 22.40% in the coming years.
PEG (NY)0.92
PEG (5Y)6
EPS Next 2Y26.07%
EPS Next 3Y22.4%
5. Dividend
5.1 Amount
ACA has a yearly dividend return of 0.20%, which is pretty low.
ACA's Dividend Yield is rather good when compared to the industry average which is at 1.57. ACA pays more dividend than 80.77% of the companies in the same industry.
With a Dividend Yield of 0.20, ACA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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
10.63% of the earnings are spent on dividend by ACA. This is a low number and sustainable payout ratio.
DP10.63%
EPS Next 2Y26.07%
EPS Next 3Y22.4%
96.93
+3.33 (+3.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners96.63%
Inst Owner Change-1.69%
Ins Owners1.83%
Ins Owner Change5.55%
Market Cap4.75B
Analysts86
Price Target118.32 (22.07%)
Short Float %2.37%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
Yearly Dividend0.2
Dividend Growth(5Y)-0.48%
DP10.63%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)89.94%
Min EPS beat(2)17.65%
Max EPS beat(2)162.24%
EPS beat(4)3
Avg EPS beat(4)36.02%
Min EPS beat(4)-40.32%
Max EPS beat(4)162.24%
EPS beat(8)7
Avg EPS beat(8)29.61%
EPS beat(12)11
Avg EPS beat(12)31.83%
EPS beat(16)15
Avg EPS beat(16)40.43%
Revenue beat(2)1
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)1.83%
Revenue beat(4)1
Avg Revenue beat(4)-3.36%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)1.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.98%
Revenue beat(12)7
Avg Revenue beat(12)0.67%
Revenue beat(16)11
Avg Revenue beat(16)2.34%
PT rev (1m)3.73%
PT rev (3m)3.73%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)1.04%
EPS NY rev (1m)4.46%
EPS NY rev (3m)4.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.97 | ||
| Fwd PE | 20.26 | ||
| P/S | 1.78 | ||
| P/FCF | 16.16 | ||
| P/OCF | 10.71 | ||
| P/B | 1.9 | ||
| P/tB | 5.65 | ||
| EV/EBITDA | 13.39 |
EPS(TTM)3.13
EY3.23%
EPS(NY)4.78
Fwd EY4.94%
FCF(TTM)6
FCFY6.19%
OCF(TTM)9.05
OCFY9.33%
SpS54.56
BVpS51.15
TBVpS17.14
PEG (NY)0.92
PEG (5Y)6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 3.68% | ||
| ROCE | 5.33% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.27% | ||
| ROICexgc | 6.98% | ||
| OM | 8.93% | ||
| PM (TTM) | 3.45% | ||
| GM | 20.82% | ||
| FCFM | 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%
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 | 0.67 | ||
| Debt/FCF | 5.72 | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 69.44% | ||
| Cap/Sales | 5.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.67% | ||
| Profit Quality | 319.09% | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 2.16 |
F-Score5
WACC9.59%
ROIC/WACC0.43
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)2.62%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%39.56%
EPS Next Y33.55%
EPS Next 2Y26.07%
EPS Next 3Y22.4%
EPS Next 5YN/A
Revenue 1Y (TTM)9.78%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%10.86%
Revenue Next Year10.47%
Revenue Next 2Y8.49%
Revenue Next 3Y6.56%
Revenue Next 5YN/A
EBIT growth 1Y27.67%
EBIT growth 3Y20.99%
EBIT growth 5Y5.01%
EBIT Next Year134.45%
EBIT Next 3Y47.68%
EBIT Next 5YN/A
FCF growth 1Y717.22%
FCF growth 3Y56.55%
FCF growth 5Y2.7%
OCF growth 1Y103.53%
OCF growth 3Y44.47%
OCF growth 5Y6.95%