ARCHER (ARCH.OL) Stock Fundamental Analysis
OSL:ARCH - Euronext Oslo - BMG0451H2087 - Common Stock - Currency: NOK
We assign a fundamental rating of 4 out of 10 to ARCH. ARCH was compared to 35 industry peers in the Energy Equipment & Services industry. ARCH has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year ARCH had a positive cash flow from operations.
In the past 5 years ARCH reported 4 times negative net income.
Each year in the past 5 years ARCH had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -4.22%, ARCH is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
ARCH has a Return On Equity of -22.92%. This is amonst the worse of the industry: ARCH underperforms 91.43% of its industry peers.
ARCH's Return On Invested Capital of 7.90% is in line compared 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 10.77%.
The last Return On Invested Capital (7.90%) for ARCH is well below the 3 year average (12.88%), which needs to be investigated, but indicates that ARCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.22% | ||
| ROE | -22.92% | ||
| ROIC | 7.9% |
ROA(3y)-1.53%
ROA(5y)-1.44%
ROE(3y)-4.88%
ROE(5y)-7.65%
ROIC(3y)12.88%
ROIC(5y)9.12%
1.3 Margins
With a Operating Margin value of 5.42%, ARCH is not doing good in the industry: 77.14% of the companies in the same industry are doing better.
ARCH's Operating Margin has improved in the last couple of years.
ARCH's Gross Margin of 85.35% is amongst the best of the industry. ARCH outperforms 97.14% of its industry peers.
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 | 5.42% | ||
| PM (TTM) | N/A | ||
| GM | 85.35% |
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.
ARCH has more shares outstanding than it did 1 year ago.
ARCH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ARCH has been reduced compared to a year ago.
2.2 Solvency
ARCH has an Altman-Z score of 0.51. This is a bad value and indicates that ARCH is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.51, ARCH is in line with its industry, outperforming 45.71% of the companies in the same industry.
The Debt to FCF ratio of ARCH is 43.08, which is on the high side as it means it would take ARCH, 43.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ARCH (43.08) is worse than 77.14% of its industry peers.
ARCH has a Debt/Equity ratio of 2.47. This is a high value indicating a heavy dependency on external financing.
ARCH has a Debt to Equity ratio of 2.47. This is amonst the worse of the industry: ARCH underperforms 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 43.08 | ||
| Altman-Z | 0.51 |
ROIC/WACC0.86
WACC9.16%
2.3 Liquidity
A Current Ratio of 1.25 indicates that ARCH should not have too much problems paying its short term obligations.
ARCH has a Current ratio (1.25) which is comparable to the rest of the industry.
ARCH has a Quick Ratio of 1.01. This is a normal value and indicates that ARCH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.01, ARCH is doing worse than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
ARCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -403.23%.
ARCH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.23%.
ARCH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.97% yearly.
EPS 1Y (TTM)-403.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-3200%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y11.59%
Revenue growth 5Y6.97%
Sales Q2Q%11.09%
3.2 Future
Based on estimates for the next years, ARCH will show a very strong growth in Earnings Per Share. The EPS will grow by 138.87% on average per year.
The Revenue is expected to grow by 6.49% on average over the next years.
EPS Next Y224.66%
EPS Next 2Y138.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.98%
Revenue Next 2Y6.49%
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
ARCH reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 4.34, the valuation of ARCH can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCH indicates a rather cheap valuation: ARCH is cheaper than 91.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ARCH to the average of the S&P500 Index (21.70), we can say ARCH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARCH is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
ARCH's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ARCH is more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.99 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
The 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
With a Yearly Dividend Yield of 2.73%, ARCH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.33, ARCH has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, ARCH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y138.87%
EPS Next 3YN/A
OSL:ARCH (7/1/2025, 7:00:00 PM)
24.35
+0.85 (+3.62%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners13.2%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner ChangeN/A
Market Cap2.20B
Analysts84
Price Target42.5 (74.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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)1
Avg EPS beat(2)-258.67%
Min EPS beat(2)-529.9%
Max EPS beat(2)12.56%
EPS beat(4)1
Avg EPS beat(4)-166.26%
Min EPS beat(4)-529.9%
Max EPS beat(4)12.56%
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)-1.69%
Min Revenue beat(2)-3.23%
Max Revenue beat(2)-0.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-3.23%
Max Revenue beat(4)2.13%
Revenue beat(8)4
Avg Revenue beat(8)0.99%
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)5.04%
PT rev (3m)8.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.34 | ||
| P/S | 0.16 | ||
| P/FCF | 18.99 | ||
| P/OCF | 2.9 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.58 |
EPS(TTM)-4.75
EYN/A
EPS(NY)5.61
Fwd EY23.05%
FCF(TTM)1.28
FCFY5.27%
OCF(TTM)8.4
OCFY34.49%
SpS148.88
BVpS21.6
TBVpS-1.09
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.22% | ||
| ROE | -22.92% | ||
| ROCE | 10.26% | ||
| ROIC | 7.9% | ||
| ROICexc | 8.84% | ||
| ROICexgc | 13.05% | ||
| OM | 5.42% | ||
| PM (TTM) | N/A | ||
| GM | 85.35% | ||
| FCFM | 0.86% |
ROA(3y)-1.53%
ROA(5y)-1.44%
ROE(3y)-4.88%
ROE(5y)-7.65%
ROIC(3y)12.88%
ROIC(5y)9.12%
ROICexc(3y)26.55%
ROICexc(5y)17.43%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)16.72%
ROCE(5y)11.84%
ROICexcg growth 3Y35.61%
ROICexcg growth 5Y-55.53%
ROICexc growth 3Y32.84%
ROICexc growth 5Y-12.9%
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-Score3
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.47 | ||
| Debt/FCF | 43.08 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 97.85% | ||
| Cap/Sales | 4.78% | ||
| Interest Coverage | 1.09 | ||
| Cash Conversion | 54.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.51 |
F-Score3
WACC9.16%
ROIC/WACC0.86
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)-403.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-3200%
EPS Next Y224.66%
EPS Next 2Y138.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.23%
Revenue growth 3Y11.59%
Revenue growth 5Y6.97%
Sales Q2Q%11.09%
Revenue Next Year10.98%
Revenue Next 2Y6.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.14%
EBIT growth 3Y32.88%
EBIT growth 5Y10.77%
EBIT Next Year117.49%
EBIT Next 3Y32.78%
EBIT Next 5YN/A
FCF growth 1Y-73.32%
FCF growth 3Y28.46%
FCF growth 5Y26.43%
OCF growth 1Y-6.34%
OCF growth 3Y24.99%
OCF growth 5Y13.72%