ARQ INC (ARQ)

US00770C1018 - Common Stock

7.86  +0.29 (+3.83%)

After market: 7.86 0 (0%)

Fundamental Rating

4

Taking everything into account, ARQ scores 4 out of 10 in our fundamental rating. ARQ was compared to 85 industry peers in the Chemicals industry. While ARQ seems to be doing ok healthwise, there are quite some concerns on its profitability. ARQ is quite expensive at the moment. It does show a decent growth rate.



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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

ARQ has a Return On Assets of -0.12%. This is in the lower half of the industry: ARQ underperforms 62.35% of its industry peers.
The Return On Equity of ARQ (-0.15%) is worse than 62.35% of its industry peers.
ARQ has a Return On Invested Capital of 0.18%. This is in the lower half of the industry: ARQ underperforms 75.29% of its industry peers.
Industry RankSector Rank
ROA -0.12%
ROE -0.15%
ROIC 0.18%
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

With a Operating Margin value of 0.53%, ARQ is not doing good in the industry: 75.29% of the companies in the same industry are doing better.
ARQ has a Gross Margin of 39.66%. This is in the better half of the industry: ARQ outperforms 80.00% of its industry peers.
In the last couple of years the Gross Margin of ARQ has declined.
Industry RankSector Rank
OM 0.53%
PM (TTM) N/A
GM 39.66%
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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6

2. Health

2.1 Basic Checks

ARQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ARQ has more shares outstanding
ARQ has more shares outstanding than it did 5 years ago.
ARQ has a worse debt/assets ratio than last year.

2.2 Solvency

ARQ has an Altman-Z score of 4.07. This indicates that ARQ is financially healthy and has little risk of bankruptcy at the moment.
ARQ's Altman-Z score of 4.07 is amongst the best of the industry. ARQ outperforms 87.06% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that ARQ is not too dependend on debt financing.
ARQ has a better Debt to Equity ratio (0.08) than 85.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF N/A
Altman-Z 4.07
ROIC/WACC0.02
WACC9.13%

2.3 Liquidity

ARQ has a Current Ratio of 2.89. This indicates that ARQ is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.89, ARQ is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
ARQ has a Quick Ratio of 2.28. This indicates that ARQ is financially healthy and has no problem in meeting its short term obligations.
ARQ has a Quick ratio of 2.28. This is amongst the best in the industry. ARQ outperforms 81.18% of its industry peers.
Industry RankSector Rank
Current Ratio 2.89
Quick Ratio 2.28

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6

3. Growth

3.1 Past

ARQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 98.70%, which is quite impressive.
Looking at the last year, ARQ shows a quite strong growth in Revenue. The Revenue has grown by 16.43% in the last year.
Measured over the past years, ARQ shows a very strong growth in Revenue. The Revenue has been growing by 32.93% on average per year.
EPS 1Y (TTM)98.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%157.14%
Revenue 1Y (TTM)16.43%
Revenue growth 3Y13.74%
Revenue growth 5Y32.93%
Sales Q2Q%16.58%

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.
The Revenue is expected to grow by 18.77% on average over the next years. This is quite good.
EPS Next Y73.74%
EPS Next 2Y49.41%
EPS Next 3Y37.61%
EPS Next 5Y38.47%
Revenue Next Year6.53%
Revenue Next 2Y18.56%
Revenue Next 3Y17.6%
Revenue Next 5Y18.77%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ARQ. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 67.67, the valuation of ARQ can be described as expensive.
ARQ's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ARQ is more expensive than 75.29% of the companies in the same industry.
ARQ's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.00.
Industry RankSector Rank
PE N/A
Fwd PE 67.67

4.2 Price Multiples

77.65% of the companies in the same industry are cheaper than ARQ, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 29.15

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.
ARQ's earnings are expected to grow with 37.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y49.41%
EPS Next 3Y37.61%

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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 (11/22/2024, 8:23:53 PM)

After market: 7.86 0 (0%)

7.86

+0.29 (+3.83%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap330.36M
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 67.67
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 -0.12%
ROE -0.15%
ROCE
ROIC
ROICexc
ROICexgc
OM 0.53%
PM (TTM) N/A
GM 39.66%
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 Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.89
Quick Ratio 2.28
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)98.7%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y73.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.43%
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