ARCO PLATFORM LTD - CLASS A (ARCE)
KYG045531061 - Common Stock
Overall ARCE gets a fundamental rating of 4 out of 10. We evaluated ARCE against 71 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of ARCE have multiple concerns. ARCE shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year ARCE has reported negative net income.
In the past year ARCE has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: ARCE reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: ARCE reported negative operating cash flow in multiple years.
1.2 Ratios
ARCE has a Return On Assets of -0.52%. This is comparable to the rest of the industry: ARCE outperforms 54.55% of its industry peers.
With a Return On Equity value of -1.22%, ARCE perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
The Return On Invested Capital of ARCE (3.15%) is better than 66.67% of its industry peers.
ARCE had an Average Return On Invested Capital over the past 3 years of 2.64%. This is significantly below the industry average of 11.87%.
The last Return On Invested Capital (3.15%) for ARCE is above the 3 year average (2.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.52% | ||
| ROE | -1.22% | ||
| ROIC | 3.15% |
ROA(3y)-0.53%
ROA(5y)-1.61%
ROE(3y)-1.86%
ROE(5y)-2.77%
ROIC(3y)2.64%
ROIC(5y)2.4%
1.3 Margins
In the last couple of years the Profit Margin of ARCE has declined.
ARCE has a better Operating Margin (13.91%) than 78.79% of its industry peers.
In the last couple of years the Operating Margin of ARCE has declined.
ARCE has a Gross Margin of 66.71%. This is in the better half of the industry: ARCE outperforms 75.76% of its industry peers.
ARCE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.91% | ||
| PM (TTM) | N/A | ||
| GM | 66.71% |
OM growth 3Y17.55%
OM growth 5Y-11.49%
PM growth 3YN/A
PM growth 5Y-34.26%
GM growth 3Y-3.35%
GM growth 5Y-1.14%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARCE is destroying value.
ARCE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, ARCE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.84 indicates that ARCE is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARCE has a better Altman-Z score (1.84) than 63.64% of its industry peers.
ARCE has a Debt/Equity ratio of 0.67. This is a neutral value indicating ARCE is somewhat dependend on debt financing.
ARCE's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. ARCE is outperformed by 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.84 |
ROIC/WACC0.23
WACC13.98%
2.3 Liquidity
A Current Ratio of 1.26 indicates that ARCE should not have too much problems paying its short term obligations.
The Current ratio of ARCE (1.26) is comparable to the rest of the industry.
A Quick Ratio of 1.06 indicates that ARCE should not have too much problems paying its short term obligations.
ARCE's Quick ratio of 1.06 is on the low side compared to the rest of the industry. ARCE is outperformed by 62.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 75.29% over the past year.
Measured over the past years, ARCE shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.84% on average per year.
Looking at the last year, ARCE shows a very strong growth in Revenue. The Revenue has grown by 30.47%.
Measured over the past years, ARCE shows a very strong growth in Revenue. The Revenue has been growing by 48.68% on average per year.
EPS 1Y (TTM)75.29%
EPS 3YN/A
EPS 5Y-4.84%
EPS Q2Q%-366.67%
Revenue 1Y (TTM)30.47%
Revenue growth 3Y45.8%
Revenue growth 5Y48.68%
Sales Q2Q%14.29%
3.2 Future
ARCE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 82.40% yearly.
ARCE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.47% yearly.
EPS Next Y356.19%
EPS Next 2Y103.64%
EPS Next 3Y82.4%
EPS Next 5YN/A
Revenue Next Year38.52%
Revenue Next 2Y30.81%
Revenue Next 3Y26.47%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ARCE. In the last year negative earnings were reported.
ARCE is valuated quite expensively with a Price/Forward Earnings ratio of 37.42.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.53. ARCE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 37.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARCE indicates a somewhat cheap valuation: ARCE is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
ARCE'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 ARCE's earnings are expected to grow with 82.40% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y103.64%
EPS Next 3Y82.4%
5. Dividend
5.1 Amount
No dividends for ARCE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ARCO PLATFORM LTD - CLASS A
NASDAQ:ARCE (12/6/2023, 8:00:00 PM)
After market: 13.99 +0.01 (+0.07%)13.98
-0.01 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap927.43M
Analysts78
Price Target17.17 (22.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)119.15%
Min EPS beat(2)-149.55%
Max EPS beat(2)387.86%
EPS beat(4)2
Avg EPS beat(4)43.33%
Min EPS beat(4)-149.55%
Max EPS beat(4)387.86%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.93%
Min Revenue beat(2)-6.43%
Max Revenue beat(2)-1.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)8.78%
Revenue beat(8)3
Avg Revenue beat(8)1.1%
Revenue beat(12)4
Avg Revenue beat(12)-0.35%
Revenue beat(16)7
Avg Revenue beat(16)0.96%
PT rev (1m)0%
PT rev (3m)2.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.82%
EPS NY rev (1m)-12.55%
EPS NY rev (3m)-40%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.36%
Revenue NY rev (1m)6.89%
Revenue NY rev (3m)6.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 37.42 | ||
| P/S | 2.36 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.16 |
EPS(TTM)-0.13
EYN/A
EPS(NY)0.37
Fwd EY2.67%
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)-0.12
OCFYN/A
SpS5.92
BVpS8.33
TBVpS-3.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.52% | ||
| ROE | -1.22% | ||
| ROCE | 5.42% | ||
| ROIC | 3.15% | ||
| ROICexc | 3.52% | ||
| ROICexgc | 26.32% | ||
| OM | 13.91% | ||
| PM (TTM) | N/A | ||
| GM | 66.71% | ||
| FCFM | N/A |
ROA(3y)-0.53%
ROA(5y)-1.61%
ROE(3y)-1.86%
ROE(5y)-2.77%
ROIC(3y)2.64%
ROIC(5y)2.4%
ROICexc(3y)3.39%
ROICexc(5y)3.94%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)4.53%
ROCE(5y)4.12%
ROICexcg growth 3Y54.57%
ROICexcg growth 5Y-1.3%
ROICexc growth 3Y43.62%
ROICexc growth 5Y-21.27%
OM growth 3Y17.55%
OM growth 5Y-11.49%
PM growth 3YN/A
PM growth 5Y-34.26%
GM growth 3Y-3.35%
GM growth 5Y-1.14%
F-Score4
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 49.81% | ||
| Cap/Sales | 8% | ||
| Interest Coverage | 0.72 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.84 |
F-Score4
WACC13.98%
ROIC/WACC0.23
Cap/Depr(3y)85.95%
Cap/Depr(5y)110.99%
Cap/Sales(3y)12.68%
Cap/Sales(5y)11.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)75.29%
EPS 3YN/A
EPS 5Y-4.84%
EPS Q2Q%-366.67%
EPS Next Y356.19%
EPS Next 2Y103.64%
EPS Next 3Y82.4%
EPS Next 5YN/A
Revenue 1Y (TTM)30.47%
Revenue growth 3Y45.8%
Revenue growth 5Y48.68%
Sales Q2Q%14.29%
Revenue Next Year38.52%
Revenue Next 2Y30.81%
Revenue Next 3Y26.47%
Revenue Next 5YN/A
EBIT growth 1Y53.59%
EBIT growth 3Y71.39%
EBIT growth 5Y31.59%
EBIT Next Year166.32%
EBIT Next 3Y58.24%
EBIT Next 5YN/A
FCF growth 1Y-453.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-138.17%
OCF growth 3YN/A
OCF growth 5YN/A