ARCOSA INC (ACA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACA - US0396531008 - Common Stock
107.29 USD
+0.13 (+0.12%)
107.29 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ACA. ACA was compared to 55 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of ACA get a neutral evaluation. Nothing too spectacular is happening here. 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.
ACA had positive earnings in each of the past 5 years.
In the past 5 years ACA always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.94%, ACA perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
ACA's Return On Equity of 5.75% is in line compared to the rest of the industry. ACA outperforms 41.82% of its industry peers.
With a Return On Invested Capital value of 4.99%, ACA perfoms like the industry average, outperforming 45.45% of the companies in the same 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 17.30%.
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 better Profit Margin (5.25%) than 65.45% 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 74.55% of its industry peers.
ACA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 21.61%, ACA is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
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 | 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
ACA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.42 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 2.42, ACA is in line with its industry, outperforming 43.64% of the companies in the same industry.
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.
ACA has a better Debt to FCF ratio (5.03) than 61.82% of its industry peers.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.53
WACC9.41%
2.3 Liquidity
A Current Ratio of 2.02 indicates that ACA has no problem at all paying its short term obligations.
ACA has a Current ratio of 2.02. This is amongst the best in the industry. ACA outperforms 89.09% of its industry peers.
A Quick Ratio of 1.30 indicates that ACA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, ACA perfoms like the industry average, outperforming 58.18% 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.
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.
The Revenue has grown by 13.96% in the past year. This is quite good.
The Revenue has been growing by 8.15% on average over the past years. This is quite good.
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
ACA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.31% yearly.
ACA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.30% yearly.
EPS Next Y36.06%
EPS Next 2Y24.91%
EPS Next 3Y20.31%
EPS Next 5YN/A
Revenue Next Year10.62%
Revenue Next 2Y8.3%
Revenue Next 3Y7.3%
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
The Price/Earnings ratio is 28.38, which means the current valuation is very expensive for ACA.
67.27% 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 26.46, ACA is valued at the same level.
With a Price/Forward Earnings ratio of 22.84, ACA is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACA indicates a somewhat cheap valuation: ACA is cheaper than 69.09% of the companies listed in the same industry.
ACA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.38 | ||
| Fwd PE | 22.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACA is valued cheaper than 81.82% of the companies in the same industry.
83.64% of the companies in the same industry are more expensive than ACA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.73 | ||
| EV/EBITDA | 12.8 |
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 20.31% in the coming years.
PEG (NY)0.79
PEG (5Y)5.5
EPS Next 2Y24.91%
EPS Next 3Y20.31%
5. Dividend
5.1 Amount
ACA has a yearly dividend return of 0.19%, which is pretty low.
Compared to an average industry Dividend Yield of 1.67, ACA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.19, ACA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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 6.66% of its income as dividend. This is a sustainable payout ratio.
DP6.66%
EPS Next 2Y24.91%
EPS Next 3Y20.31%
107.29
+0.13 (+0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.34%
Inst Owner Change-4.45%
Ins Owners1.8%
Ins Owner Change-2%
Market Cap5.26B
Revenue(TTM)2.83B
Net Income(TTM)148.60M
Analysts86
Price Target122.23 (13.92%)
Short Float %2.25%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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)3.3%
PT rev (3m)3.3%
EPS NQ rev (1m)5.06%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)1.6%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.38 | ||
| Fwd PE | 22.84 | ||
| P/S | 1.86 | ||
| P/FCF | 16.73 | ||
| P/OCF | 11.21 | ||
| P/B | 2.04 | ||
| P/tB | 5.73 | ||
| EV/EBITDA | 12.8 |
EPS(TTM)3.78
EY3.52%
EPS(NY)4.7
Fwd EY4.38%
FCF(TTM)6.41
FCFY5.98%
OCF(TTM)9.57
OCFY8.92%
SpS57.76
BVpS52.7
TBVpS18.72
PEG (NY)0.79
PEG (5Y)5.5
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 | 2.42 |
F-Score5
WACC9.41%
ROIC/WACC0.53
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 Y36.06%
EPS Next 2Y24.91%
EPS Next 3Y20.31%
EPS Next 5YN/A
Revenue 1Y (TTM)13.96%
Revenue growth 3Y8.06%
Revenue growth 5Y8.15%
Sales Q2Q%24.58%
Revenue Next Year10.62%
Revenue Next 2Y8.3%
Revenue Next 3Y7.3%
Revenue Next 5YN/A
EBIT growth 1Y48.65%
EBIT growth 3Y20.99%
EBIT growth 5Y5.01%
EBIT Next Year133.35%
EBIT Next 3Y37.6%
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.
What is the valuation status for ACA stock?
ChartMill assigns a valuation rating of 6 / 10 to ARCOSA INC (ACA). This can be considered as Fairly Valued.
Can you provide the profitability details for ARCOSA INC?
ARCOSA INC (ACA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of ARCOSA INC (ACA) stock?
The Price/Earnings (PE) ratio for ARCOSA INC (ACA) is 28.38 and the Price/Book (PB) ratio is 2.04.
What is the expected EPS growth for ARCOSA INC (ACA) stock?
The Earnings per Share (EPS) of ARCOSA INC (ACA) is expected to grow by 36.06% in the next year.