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ARQ INC (ARQ) Stock Fundamental Analysis

NASDAQ:ARQ - Nasdaq - US00770C1018 - Common Stock - Currency: USD

5.67  -0.02 (-0.35%)

After market: 5.67 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ARQ. 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

ARQ had negative earnings in the past year.
ARQ had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ARQ reported negative net income in multiple years.
In multiple years ARQ reported negative operating cash flow during the last 5 years.
ARQ Yearly Net Income VS EBIT VS OCF VS FCFARQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M

1.2 Ratios

The Return On Assets of ARQ (-0.12%) is worse than 62.65% of its industry peers.
Looking at the Return On Equity, with a value of -0.15%, ARQ is doing worse than 62.65% of the companies in the same industry.
ARQ has a Return On Invested Capital of 0.18%. This is in the lower half of the industry: ARQ underperforms 77.11% 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
ARQ Yearly ROA, ROE, ROICARQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100

1.3 Margins

Looking at the Operating Margin, with a value of 0.53%, ARQ is doing worse than 77.11% of the companies in the same industry.
ARQ has a better Gross Margin (39.66%) than 78.31% of its industry peers.
ARQ's Gross Margin has declined in the last couple of years.
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%
ARQ Yearly Profit, Operating, Gross MarginsARQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 150

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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARQ is destroying value.
Compared to 1 year ago, ARQ has more shares outstanding
Compared to 5 years ago, ARQ has more shares outstanding
The debt/assets ratio for ARQ is higher compared to a year ago.
ARQ Yearly Shares OutstandingARQ Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
ARQ Yearly Total Debt VS Total AssetsARQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

2.2 Solvency

An Altman-Z score of 3.30 indicates that ARQ is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.30, ARQ belongs to the top of the industry, outperforming 80.72% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that ARQ is not too dependend on debt financing.
ARQ's Debt to Equity ratio of 0.08 is amongst the best of the industry. ARQ outperforms 86.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF N/A
Altman-Z 3.3
ROIC/WACC0.02
WACC9.35%
ARQ Yearly LT Debt VS Equity VS FCFARQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M

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.
ARQ has a better Current ratio (2.89) than 79.52% of its industry peers.
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 better Quick ratio (2.28) than 81.93% of its industry peers.
Industry RankSector Rank
Current Ratio 2.89
Quick Ratio 2.28
ARQ Yearly Current Assets VS Current LiabilitesARQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

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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.
ARQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.43%.
ARQ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.93% yearly.
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

The Earnings Per Share is expected to grow by 35.61% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.61% on average over the next years. This is quite good.
EPS Next Y76.43%
EPS Next 2Y49.52%
EPS Next 3Y37.23%
EPS Next 5Y35.61%
Revenue Next Year12.99%
Revenue Next 2Y21.33%
Revenue Next 3Y17.42%
Revenue Next 5Y19.61%

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.
ARQ Yearly Revenue VS EstimatesARQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 100M 200M 300M
ARQ Yearly EPS VS EstimatesARQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 0.5 -0.5 1 1.5 2

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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.
With a Price/Forward Earnings ratio of 48.12, ARQ can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARQ indicates a slightly more expensive valuation: ARQ is more expensive than 72.29% of the companies listed 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 23.06.
Industry RankSector Rank
PE N/A
Fwd PE 48.12
ARQ Price Earnings VS Forward Price EarningsARQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ARQ is valued a bit more expensive than the industry average as 74.70% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 21.19
ARQ Per share dataARQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4

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 37.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y49.52%
EPS Next 3Y37.23%

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0

5. Dividend

5.1 Amount

ARQ does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ARQ INC

NASDAQ:ARQ (2/20/2025, 8:00:00 PM)

After market: 5.67 0 (0%)

5.67

-0.02 (-0.35%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)03-05 2025-03-05/amc
Inst Owners22.77%
Inst Owner ChangeN/A
Ins Owners17.95%
Ins Owner Change2.26%
Market Cap238.31M
Analysts80
Price Target10.2 (79.89%)
Short Float %3.4%
Short Ratio4.31
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.83%
Min EPS beat(2)-18.81%
Max EPS beat(2)13.15%
EPS beat(4)2
Avg EPS beat(4)47.7%
Min EPS beat(4)-27.3%
Max EPS beat(4)223.76%
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)2
Avg Revenue beat(2)17.68%
Min Revenue beat(2)13.26%
Max Revenue beat(2)22.1%
Revenue beat(4)3
Avg Revenue beat(4)7.9%
Min Revenue beat(4)-6.82%
Max Revenue beat(4)22.1%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.13%
EPS NY rev (1m)0%
EPS NY rev (3m)10.25%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)7.53%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)6.07%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 48.12
P/S 2.17
P/FCF N/A
P/OCF 24.4
P/B 1.09
P/tB 1.13
EV/EBITDA 21.19
EPS(TTM)-0.01
EYN/A
EPS(NY)0.12
Fwd EY2.08%
FCF(TTM)-1.05
FCFYN/A
OCF(TTM)0.23
OCFY4.1%
SpS2.62
BVpS5.19
TBVpS5.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.12%
ROE -0.15%
ROCE 0.23%
ROIC 0.18%
ROICexc 0.23%
ROICexgc 0.24%
OM 0.53%
PM (TTM) N/A
GM 39.66%
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF N/A
Debt/EBITDA 1.78
Cap/Depr 574.39%
Cap/Sales 48.83%
Interest Coverage 250
Cash Conversion 98.33%
Profit Quality N/A
Current Ratio 2.89
Quick Ratio 2.28
Altman-Z 3.3
F-Score5
WACC9.35%
ROIC/WACC0.02
Cap/Depr(3y)176.77%
Cap/Depr(5y)157.7%
Cap/Sales(3y)15.75%
Cap/Sales(5y)15.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)98.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%157.14%
EPS Next Y76.43%
EPS Next 2Y49.52%
EPS Next 3Y37.23%
EPS Next 5Y35.61%
Revenue 1Y (TTM)16.43%
Revenue growth 3Y13.74%
Revenue growth 5Y32.93%
Sales Q2Q%16.58%
Revenue Next Year12.99%
Revenue Next 2Y21.33%
Revenue Next 3Y17.42%
Revenue Next 5Y19.61%
EBIT growth 1Y102.57%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year134.18%
EBIT Next 3Y52.01%
EBIT Next 5Y40.9%
FCF growth 1Y-659.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y488.25%
OCF growth 3YN/A
OCF growth 5YN/A