ARCOSA INC (ACA) Stock Fundamental Analysis
USA - NYSE:ACA - US0396531008 - Common Stock
99.41 USD
-0.37 (-0.37%)
99.41 USD
0 (0%)
Taking everything into account, ACA scores 5 out of 10 in our fundamental rating. 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 decent growth rate and is not valued too expensively.
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
ACA has a Return On Assets of 2.94%. This is comparable to the rest of the industry: ACA outperforms 52.73% of its industry peers.
ACA has a Return On Equity (5.75%) which is comparable to the rest of the industry.
ACA's Return On Invested Capital of 4.99% is in line compared to the rest of the industry. ACA outperforms 45.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACA is significantly below the industry average of 16.87%.
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 67.27% of its industry peers.
ACA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.27%, ACA is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
ACA's Operating Margin has declined in the last couple of years.
ACA's Gross Margin of 21.61% is fine compared to the rest of the industry. ACA outperforms 63.64% 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 | 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 2.33 indicates that ACA is not a great score, but indicates only limited risk for bankruptcy at the moment.
ACA has a Altman-Z score (2.33) which is comparable to the rest of the 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.
ACA's Debt to FCF ratio of 5.03 is fine compared to the rest of the industry. ACA outperforms 61.82% of its industry peers.
ACA has a Debt/Equity ratio of 0.61. This is a neutral value indicating ACA is somewhat dependend on debt financing.
ACA has a Debt to Equity ratio of 0.61. This is comparable to the rest of the industry: ACA outperforms 56.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.51
WACC9.8%
2.3 Liquidity
ACA has a Current Ratio of 2.02. This indicates that ACA is financially healthy and has no problem in meeting 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.
ACA has a Quick ratio of 1.30. This is comparable to the rest of the industry: ACA outperforms 58.18% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 5.16% on average over the past years.
The Revenue has grown by 13.96% in the past year. This is quite good.
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
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
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
Based on the Price/Earnings ratio of 26.30, the valuation of ACA can be described as expensive.
ACA's Price/Earnings ratio is a bit cheaper when compared to the industry. ACA is cheaper than 69.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACA to the average of the S&P500 Index (25.07), we can say ACA is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.17, the valuation of ACA can be described as rather expensive.
72.73% of the companies in the same industry are more expensive than ACA, based on the Price/Forward Earnings ratio.
ACA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 21.17 |
4.2 Price Multiples
ACA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACA is cheaper than 83.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACA is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.5 | ||
| EV/EBITDA | 12.1 |
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 20.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)5.09
EPS Next 2Y24.91%
EPS Next 3Y20.31%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, ACA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.78, ACA pays a better dividend. On top of this ACA pays more dividend than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ACA's dividend is way lower than the S&P500 average.
| 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
6.66% of the earnings are spent on dividend by ACA. This is a low number and sustainable payout ratio.
DP6.66%
EPS Next 2Y24.91%
EPS Next 3Y20.31%
99.41
-0.37 (-0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners95.34%
Inst Owner Change-4.39%
Ins Owners1.8%
Ins Owner Change-2.15%
Market Cap4.88B
Revenue(TTM)2.83B
Net Income(TTM)148.60M
Analysts86
Price Target118.32 (19.02%)
Short Float %2.41%
Short Ratio5.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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%
PT rev (3m)3.73%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)1.84%
EPS NY rev (3m)6.43%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.3 | ||
| Fwd PE | 21.17 | ||
| P/S | 1.72 | ||
| P/FCF | 15.5 | ||
| P/OCF | 10.39 | ||
| P/B | 1.89 | ||
| P/tB | 5.31 | ||
| EV/EBITDA | 12.1 |
EPS(TTM)3.78
EY3.8%
EPS(NY)4.7
Fwd EY4.72%
FCF(TTM)6.42
FCFY6.45%
OCF(TTM)9.57
OCFY9.63%
SpS57.77
BVpS52.71
TBVpS18.73
PEG (NY)0.73
PEG (5Y)5.09
Graham Number66.96
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 | 2.33 |
F-Score5
WACC9.8%
ROIC/WACC0.51
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 26.3 and the Price/Book (PB) ratio is 1.89.
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.