ARCHER (ARCH.OL) Stock Fundamental Analysis
OSL:ARCH - Euronext Oslo - BMG0451H2087 - Common Stock - Currency: NOK
Taking everything into account, ARCH scores 3 out of 10 in our fundamental rating. ARCH was compared to 35 industry peers in the Energy Equipment & Services industry. While ARCH is still in line with the averages on profitability rating, there are concerns on its financial health. ARCH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARCH has reported negative net income.
In the past year ARCH had a positive cash flow from operations.
ARCH had negative earnings in 4 of the past 5 years.
ARCH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ARCH (0.13%) is worse than 82.86% of its industry peers.
ARCH has a Return On Equity of 0.63%. This is amonst the worse of the industry: ARCH underperforms 82.86% of its industry peers.
ARCH's Return On Invested Capital of 8.88% is in line compared to the rest of the industry. ARCH outperforms 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARCH is in line with the industry average of 14.59%.
The last Return On Invested Capital (8.88%) for ARCH is well below the 3 year average (12.89%), which needs to be investigated, but indicates that ARCH had better years and this may not be a problem.
| 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
With a Profit Margin value of 0.10%, ARCH is not doing good in the industry: 82.86% of the companies in the same industry are doing better.
The Operating Margin of ARCH (5.71%) is worse than 77.14% of its industry peers.
ARCH's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 84.63%, ARCH belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
In the last couple of years the Gross Margin of ARCH has remained more or less at the same level.
| 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
ARCH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ARCH has more shares outstanding
The number of shares outstanding for ARCH has been reduced compared to 5 years ago.
The debt/assets ratio for ARCH has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ARCH is 31.55, which is on the high side as it means it would take ARCH, 31.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ARCH (31.55) is worse than 65.71% of its industry peers.
A Debt/Equity ratio of 2.13 is on the high side and indicates that ARCH has dependencies on debt financing.
With a Debt to Equity ratio value of 2.13, ARCH is not doing good in the industry: 82.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 31.55 | ||
| Altman-Z | N/A |
ROIC/WACC0.77
WACC11.54%
2.3 Liquidity
ARCH has a Current Ratio of 1.22. This is a normal value and indicates that ARCH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ARCH (1.22) is worse than 62.86% of its industry peers.
A Quick Ratio of 1.00 indicates that ARCH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, ARCH is doing worse than 65.71% of the companies in the same industry.
| 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 -658.14%.
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)-658.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-275.42%
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 142.21% on average over the next years. This is a very strong growth
ARCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.
EPS Next Y175%
EPS Next 2Y142.21%
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
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
ARCH reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 7.52, which indicates a rather cheap valuation of ARCH.
Based on the Price/Forward Earnings ratio, ARCH is valued a bit cheaper than 65.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, ARCH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARCH indicates a somewhat cheap valuation: ARCH is cheaper than 80.00% of the companies listed in the same industry.
ARCH's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ARCH is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.25 | ||
| EV/EBITDA | 4.3 |
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 142.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y142.21%
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 (3/7/2025, 7:00:00 PM)
22.85
+0.09 (+0.4%)
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 Cap2.07B
Analysts84
Price Target38.76 (69.63%)
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)-2.56%
PT rev (3m)-2.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.08%
EPS NY rev (1m)-32.1%
EPS NY rev (3m)-54.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)3.41%
Revenue NY rev (3m)5.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.52 | ||
| P/S | 0.15 | ||
| P/FCF | 14.25 | ||
| P/OCF | 2.33 | ||
| P/B | 1 | ||
| P/tB | 7.49 | ||
| EV/EBITDA | 4.3 |
EPS(TTM)-3.71
EYN/A
EPS(NY)3.04
Fwd EY13.3%
FCF(TTM)1.6
FCFY7.02%
OCF(TTM)9.81
OCFY42.93%
SpS150.43
BVpS22.82
TBVpS3.05
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
WACC11.54%
ROIC/WACC0.77
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)-658.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-275.42%
EPS Next Y175%
EPS Next 2Y142.21%
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 Year116%
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%