ARQ INC (ARQ)

US00770C1018 - Common Stock

6.17  +0.06 (+0.98%)

After market: 5.58 -0.59 (-9.56%)

Fundamental Rating

3

ARQ gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. ARQ scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, ARQ is valued expensive at the moment.



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1

1. Profitability

1.1 Basic Checks

ARQ had negative earnings in the past year.
In the past year ARQ had a positive cash flow from operations.
In multiple years ARQ reported negative net income over the last 5 years.
In multiple years ARQ reported negative operating cash flow during the last 5 years.

1.2 Ratios

The Return On Assets of ARQ (-1.66%) is worse than 70.24% of its industry peers.
ARQ has a worse Return On Equity (-2.17%) than 64.29% of its industry peers.
Industry RankSector Rank
ROA -1.66%
ROE -2.17%
ROIC N/A
ROA(3y)7.49%
ROA(5y)5.81%
ROE(3y)9.26%
ROE(5y)7.35%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

ARQ has a better Gross Margin (37.42%) than 77.38% of its industry peers.
ARQ's Gross Margin has declined in the last couple of years.
ARQ does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 37.42%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.39%
GM growth 5Y-15.39%

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5

2. Health

2.1 Basic Checks

ARQ does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ARQ has more shares outstanding
The number of shares outstanding for ARQ has been increased compared to 5 years ago.
Compared to 1 year ago, ARQ has a worse debt to assets ratio.

2.2 Solvency

ARQ has an Altman-Z score of 3.23. This indicates that ARQ is financially healthy and has little risk of bankruptcy at the moment.
ARQ's Altman-Z score of 3.23 is amongst the best of the industry. ARQ outperforms 82.14% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that ARQ is not too dependend on debt financing.
ARQ's Debt to Equity ratio of 0.09 is amongst the best of the industry. ARQ outperforms 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF N/A
Altman-Z 3.23
ROIC/WACCN/A
WACC8.47%

2.3 Liquidity

ARQ has a Current Ratio of 2.68. This indicates that ARQ is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ARQ (2.68) is better than 67.86% of its industry peers.
ARQ has a Quick Ratio of 1.83. This is a normal value and indicates that ARQ is financially healthy and should not expect problems in meeting its short term obligations.
ARQ has a Quick ratio of 1.83. This is in the better half of the industry: ARQ outperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 2.68
Quick Ratio 1.83

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 86.24% over the past year.
The Revenue has grown by 12.85% in the past year. This is quite good.
ARQ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.93% yearly.
EPS 1Y (TTM)86.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%71.43%
Revenue 1Y (TTM)12.85%
Revenue growth 3Y13.74%
Revenue growth 5Y32.93%
Sales Q2Q%24.26%

3.2 Future

ARQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.47% yearly.
Based on estimates for the next years, ARQ will show a quite strong growth in Revenue. The Revenue will grow by 18.77% on average per year.
EPS Next Y75.76%
EPS Next 2Y60.17%
EPS Next 3Y43.41%
EPS Next 5Y38.47%
Revenue Next Year4.8%
Revenue Next 2Y21.26%
Revenue Next 3Y18.07%
Revenue Next 5Y18.77%

3.3 Evolution

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.

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2

4. Valuation

4.1 Price/Earnings Ratio

ARQ reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 21.82, the valuation of ARQ can be described as rather expensive.
ARQ's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ARQ is more expensive than 61.90% of the companies in the same industry.
ARQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.21, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 21.82

4.2 Price Multiples

ARQ's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ARQ is more expensive than 78.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 38.94

4.3 Compensation for Growth

ARQ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARQ's earnings are expected to grow with 43.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.17%
EPS Next 3Y43.41%

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0

5. Dividend

5.1 Amount

No dividends for ARQ!.
Industry RankSector Rank
Dividend Yield N/A

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ARQ INC

NASDAQ:ARQ (9/19/2024, 8:00:00 PM)

After market: 5.58 -0.59 (-9.56%)

6.17

+0.06 (+0.98%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap225.27M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 21.82
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.66%
ROE -2.17%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 37.42%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.68
Quick Ratio 1.83
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)86.24%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y75.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.85%
Revenue growth 3Y13.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y