ARCHER (ARCH.OL) Stock Fundamental Analysis
OSL:ARCH - Euronext Oslo - BMG0451H2087 - Common Stock - Currency: NOK
ARCH gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 35 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of ARCH while its profitability can be described as average. ARCH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ARCH had negative earnings in the past year.
ARCH had a positive operating cash flow in the past year.
ARCH had negative earnings in 4 of the past 5 years.
In the past 5 years ARCH always reported a positive cash flow from operatings.
1.2 Ratios
ARCH's Return On Assets of 0.13% is on the low side compared to the rest of the industry. ARCH is outperformed by 85.71% of its industry peers.
The Return On Equity of ARCH (0.63%) is worse than 85.71% of its industry peers.
ARCH has a Return On Invested Capital of 8.88%. This is comparable to the rest of the industry: ARCH outperforms 57.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARCH is above the industry average of 10.15%.
The 3 year average ROIC (12.89%) for ARCH is well above the current ROIC(8.88%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 0.63% | ||
| ROIC | 8.88% |
ROA(3y)-1.53%
ROA(5y)-1.44%
ROE(3y)-4.88%
ROE(5y)-7.65%
ROIC(3y)12.89%
ROIC(5y)9.12%
1.3 Margins
The Profit Margin of ARCH (0.10%) is worse than 85.71% of its industry peers.
The Operating Margin of ARCH (5.71%) is worse than 77.14% of its industry peers.
In the last couple of years the Operating Margin of ARCH has grown nicely.
ARCH has a Gross Margin of 84.63%. This is amongst the best in the industry. ARCH outperforms 97.14% of its industry peers.
ARCH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.71% | ||
| PM (TTM) | 0.1% | ||
| GM | 84.63% |
OM growth 3Y19.08%
OM growth 5Y3.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.81%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARCH is creating some value.
ARCH has more shares outstanding than it did 1 year ago.
ARCH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARCH has an improved debt to assets ratio.
2.2 Solvency
ARCH has a debt to FCF ratio of 31.55. This is a negative value and a sign of low solvency as ARCH would need 31.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 31.55, ARCH is doing worse than 65.71% of the companies in the same industry.
ARCH has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
ARCH's Debt to Equity ratio of 2.13 is on the low side compared to the rest of the industry. ARCH is outperformed by 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.55 | ||
| Altman-Z | N/A |
ROIC/WACC0.75
WACC11.84%
2.3 Liquidity
A Current Ratio of 1.22 indicates that ARCH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.22, ARCH is doing worse than 62.86% of the companies in the same industry.
ARCH has a Quick Ratio of 1.22. This is a bad value and indicates that ARCH is not financially healthy enough and could expect problems in meeting its short term obligations.
ARCH has a Quick ratio of 1.00. This is in the lower half of the industry: ARCH underperforms 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
ARCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -242.86%.
Looking at the last year, ARCH shows a quite strong growth in Revenue. The Revenue has grown by 11.24% in the last year.
Measured over the past years, ARCH shows a small growth in Revenue. The Revenue has been growing by 6.97% on average per year.
EPS 1Y (TTM)-242.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-176%
Revenue 1Y (TTM)11.24%
Revenue growth 3Y11.59%
Revenue growth 5Y6.97%
Sales Q2Q%14.16%
3.2 Future
The Earnings Per Share is expected to grow by 138.87% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.67% on average over the next years.
EPS Next Y224.66%
EPS Next 2Y138.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.14%
Revenue Next 2Y5.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ARCH. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 11.03, the valuation of ARCH can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as ARCH.
ARCH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.03 |
4.2 Price Multiples
ARCH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARCH is cheaper than 71.43% of the companies in the same industry.
62.86% of the companies in the same industry are cheaper than ARCH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.94 | ||
| EV/EBITDA | 4.25 |
4.3 Compensation for Growth
ARCH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARCH's earnings are expected to grow with 138.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y138.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ARCH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OSL:ARCH (4/25/2025, 7:00:00 PM)
21.45
+0.45 (+2.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners10.64%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner ChangeN/A
Market Cap1.94B
Analysts84
Price Target39.27 (83.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-73.86%
Min EPS beat(2)-86.93%
Max EPS beat(2)-60.78%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)2.13%
Revenue beat(4)2
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-1.93%
Max Revenue beat(4)4.59%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.32%
PT rev (3m)-1.28%
EPS NQ rev (1m)-35.01%
EPS NQ rev (3m)-50.01%
EPS NY rev (1m)-33.33%
EPS NY rev (3m)-69.61%
Revenue NQ rev (1m)1.28%
Revenue NQ rev (3m)3.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.03 | ||
| P/S | 0.15 | ||
| P/FCF | 13.94 | ||
| P/OCF | 2.28 | ||
| P/B | 0.98 | ||
| P/tB | 7.32 | ||
| EV/EBITDA | 4.25 |
EPS(TTM)-1.56
EYN/A
EPS(NY)1.94
Fwd EY9.06%
FCF(TTM)1.54
FCFY7.17%
OCF(TTM)9.42
OCFY43.9%
SpS144.41
BVpS21.91
TBVpS2.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.13% | ||
| ROE | 0.63% | ||
| ROCE | 11.54% | ||
| ROIC | 8.88% | ||
| ROICexc | 9.78% | ||
| ROICexgc | 13.81% | ||
| OM | 5.71% | ||
| PM (TTM) | 0.1% | ||
| GM | 84.63% | ||
| FCFM | 1.07% |
ROA(3y)-1.53%
ROA(5y)-1.44%
ROE(3y)-4.88%
ROE(5y)-7.65%
ROIC(3y)12.89%
ROIC(5y)9.12%
ROICexc(3y)26.56%
ROICexc(5y)17.44%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)16.74%
ROCE(5y)11.85%
ROICexcg growth 3Y35.95%
ROICexcg growth 5Y-55.46%
ROICexc growth 3Y33.07%
ROICexc growth 5Y-12.81%
OM growth 3Y19.08%
OM growth 5Y3.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.81%
GM growth 5YN/A
F-Score6
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.55 | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 119.1% | ||
| Cap/Sales | 5.46% | ||
| Interest Coverage | 1.02 | ||
| Cash Conversion | 63.37% | ||
| Profit Quality | 1116.67% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1 | ||
| Altman-Z | N/A |
F-Score6
WACC11.84%
ROIC/WACC0.75
Cap/Depr(3y)89.27%
Cap/Depr(5y)79.35%
Cap/Sales(3y)4.13%
Cap/Sales(5y)3.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-242.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-176%
EPS Next Y224.66%
EPS Next 2Y138.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.24%
Revenue growth 3Y11.59%
Revenue growth 5Y6.97%
Sales Q2Q%14.16%
Revenue Next Year10.14%
Revenue Next 2Y5.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y10.46%
EBIT growth 3Y32.88%
EBIT growth 5Y10.77%
EBIT Next Year119.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y397.78%
FCF growth 3Y28.46%
FCF growth 5Y26.43%
OCF growth 1Y100.98%
OCF growth 3Y24.99%
OCF growth 5Y13.72%