ARCOSA INC (ACA) Stock Fundamental Analysis
NYSE:ACA - New York Stock Exchange, Inc. - US0396531008 - Common Stock - Currency: USD
ACA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 47 industry peers in the Construction & Engineering industry. There are concerns on the financial health of ACA while its profitability can be described as average. ACA has a decent growth rate and is not valued too expensively.
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
With a Return On Assets value of 1.91%, ACA perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.86%, ACA is in line with its industry, outperforming 48.94% of the companies in the same industry.
ACA has a Return On Invested Capital (3.40%) which 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 12.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 3.86% | ||
| ROIC | 3.4% |
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 (3.65%) than 63.83% of its industry peers.
In the last couple of years the Profit Margin of ACA has declined.
With a decent Operating Margin value of 7.60%, ACA is doing good in the industry, outperforming 70.21% 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 (20.05%) is better than 63.83% of its industry peers.
ACA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.6% | ||
| PM (TTM) | 3.65% | ||
| GM | 20.05% |
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.
ACA has more shares outstanding than it did 1 year ago.
ACA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ACA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.94 indicates that ACA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.94, ACA perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
ACA has a debt to FCF ratio of 5.41. This is a neutral value as ACA would need 5.41 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.41, ACA perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that ACA is somewhat dependend on debt financing.
ACA has a Debt to Equity ratio of 0.69. This is comparable to the rest of the industry: ACA outperforms 48.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.38
WACC9.06%
2.3 Liquidity
ACA has a Current Ratio of 1.85. This is a normal value and indicates that ACA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.85, ACA belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
ACA has a Quick Ratio of 1.15. This is a normal value and indicates that ACA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.15, ACA is doing worse than 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for ACA have decreased by -6.81% in the last year.
ACA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.16% yearly.
ACA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.35%.
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)-6.81%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%-32.35%
Revenue 1Y (TTM)11.35%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%14.43%
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 33.98% on average per year.
The Revenue is expected to grow by 9.29% on average over the next years. This is quite good.
EPS Next Y45.82%
EPS Next 2Y33.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.3%
Revenue Next 2Y9.29%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 27.49 indicates a quite expensive valuation of ACA.
ACA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ACA to the average of the S&P500 Index (29.71), we can say ACA is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.85, the valuation of ACA can be described as rather expensive.
ACA's Price/Forward Earnings is on the same level as the industry average.
ACA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.49 | ||
| Fwd PE | 18.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ACA is valued a bit cheaper than 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.92 | ||
| EV/EBITDA | 14.14 |
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 33.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)5.32
EPS Next 2Y33.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ACA has a yearly dividend return of 0.25%, which is pretty low.
The stock price of ACA dropped by -24.01% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.93, ACA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.25, ACA pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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
ACA pays out 10.35% of its income as dividend. This is a sustainable payout ratio.
DP10.35%
EPS Next 2Y33.98%
EPS Next 3YN/A
NYSE:ACA (3/6/2025, 10:52:51 AM)
82.74
+0.4 (+0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.27%
Inst Owner Change2.21%
Ins Owners1.26%
Ins Owner Change3.87%
Market Cap4.04B
Analysts86
Price Target120.02 (45.06%)
Short Float %1.45%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Yearly Dividend0.2
Dividend Growth(5Y)-0.48%
DP10.35%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.9%
Min EPS beat(2)-40.32%
Max EPS beat(2)4.52%
EPS beat(4)3
Avg EPS beat(4)2.74%
Min EPS beat(4)-40.32%
Max EPS beat(4)38.46%
EPS beat(8)7
Avg EPS beat(8)22.1%
EPS beat(12)11
Avg EPS beat(12)30.68%
EPS beat(16)15
Avg EPS beat(16)33.49%
Revenue beat(2)0
Avg Revenue beat(2)-5.77%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)-4.44%
Revenue beat(4)1
Avg Revenue beat(4)-2.47%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)2.17%
Revenue beat(8)4
Avg Revenue beat(8)0.41%
Revenue beat(12)8
Avg Revenue beat(12)2.41%
Revenue beat(16)12
Avg Revenue beat(16)2.69%
PT rev (1m)0%
PT rev (3m)6.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.56%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.49 | ||
| Fwd PE | 18.85 | ||
| P/S | 1.57 | ||
| P/FCF | 12.92 | ||
| P/OCF | 8.04 | ||
| P/B | 1.66 | ||
| P/tB | 5.54 | ||
| EV/EBITDA | 14.14 |
EPS(TTM)3.01
EY3.64%
EPS(NY)4.39
Fwd EY5.3%
FCF(TTM)6.4
FCFY7.74%
OCF(TTM)10.29
OCFY12.44%
SpS52.68
BVpS49.78
TBVpS14.94
PEG (NY)0.6
PEG (5Y)5.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 3.86% | ||
| ROCE | 4.44% | ||
| ROIC | 3.4% | ||
| ROICexc | 3.55% | ||
| ROICexgc | 5.96% | ||
| OM | 7.6% | ||
| PM (TTM) | 3.65% | ||
| GM | 20.05% | ||
| FCFM | 12.15% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.41 | ||
| Debt/EBITDA | 4.3 | ||
| Cap/Depr | 97.28% | ||
| Cap/Sales | 7.38% | ||
| Interest Coverage | 3.88 | ||
| Cash Conversion | 128.65% | ||
| Profit Quality | 333.3% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 1.94 |
F-Score5
WACC9.06%
ROIC/WACC0.38
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)-6.81%
EPS 3Y16.17%
EPS 5Y5.16%
EPS Q2Q%-32.35%
EPS Next Y45.82%
EPS Next 2Y33.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.35%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%14.43%
Revenue Next Year12.3%
Revenue Next 2Y9.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.84%
EBIT growth 3Y20.99%
EBIT growth 5Y5.01%
EBIT Next Year132.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y443.13%
FCF growth 3Y56.55%
FCF growth 5Y2.7%
OCF growth 1Y92.34%
OCF growth 3Y44.47%
OCF growth 5Y6.95%