ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - TSX:ARX - CA00208D4084 - Common Stock
23.89 CAD
-2.28 (-8.71%)
Overall ARX gets a fundamental rating of 7 out of 10. We evaluated ARX against 214 industry peers in the Oil, Gas & Consumable Fuels industry. While ARX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ARX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, ARX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year ARX was profitable.
In the past year ARX had a positive cash flow from operations.
Of the past 5 years ARX 4 years were profitable.
In the past 5 years ARX always reported a positive cash flow from operatings.
1.2 Ratios
ARX's Return On Assets of 10.58% is amongst the best of the industry. ARX outperforms 93.15% of its industry peers.
ARX has a Return On Equity of 18.08%. This is amongst the best in the industry. ARX outperforms 92.24% of its industry peers.
ARX's Return On Invested Capital of 10.19% is amongst the best of the industry. ARX outperforms 92.24% of its industry peers.
ARX had an Average Return On Invested Capital over the past 3 years of 16.99%. This is significantly above the industry average of 6.87%.
The last Return On Invested Capital (10.19%) for ARX is well below the 3 year average (16.99%), which needs to be investigated, but indicates that ARX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.58% | ||
| ROE | 18.08% | ||
| ROIC | 10.19% |
ROA(3y)13.76%
ROA(5y)7.43%
ROE(3y)23.41%
ROE(5y)12.78%
ROIC(3y)16.99%
ROIC(5y)13.58%
1.3 Margins
With an excellent Profit Margin value of 26.24%, ARX belongs to the best of the industry, outperforming 86.30% of the companies in the same industry.
ARX's Profit Margin has improved in the last couple of years.
ARX's Operating Margin of 29.11% is amongst the best of the industry. ARX outperforms 81.28% of its industry peers.
In the last couple of years the Operating Margin of ARX has grown nicely.
The Gross Margin of ARX (69.84%) is better than 89.50% of its industry peers.
In the last couple of years the Gross Margin of ARX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.11% | ||
| PM (TTM) | 26.24% | ||
| GM | 69.84% |
OM growth 3Y-15.37%
OM growth 5Y23.89%
PM growth 3Y12.7%
PM growth 5YN/A
GM growth 3Y-2.53%
GM growth 5Y-0.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARX is creating value.
ARX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ARX has more shares outstanding
ARX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.45 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.45, ARX is in the better half of the industry, outperforming 72.15% of the companies in the same industry.
ARX has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as ARX would need 2.58 years to pay back of all of its debts.
The Debt to FCF ratio of ARX (2.58) is better than 87.21% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that ARX is not too dependend on debt financing.
ARX has a better Debt to Equity ratio (0.29) than 60.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.39
WACC7.35%
2.3 Liquidity
ARX has a Current Ratio of 1.21. This is a normal value and indicates that ARX is financially healthy and should not expect problems in meeting its short term obligations.
ARX has a better Current ratio (1.21) than 64.38% of its industry peers.
ARX has a Quick Ratio of 1.20. This is a normal value and indicates that ARX is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.20, ARX is doing good in the industry, outperforming 69.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.38% over the past year.
ARX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.78% yearly.
The Revenue has decreased by -9.67% in the past year.
Measured over the past years, ARX shows a very strong growth in Revenue. The Revenue has been growing by 33.07% on average per year.
EPS 1Y (TTM)13.38%
EPS 3Y14.78%
EPS 5YN/A
EPS Q2Q%-30.72%
Revenue 1Y (TTM)-9.67%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%-5.05%
3.2 Future
ARX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.49% yearly.
The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
EPS Next Y44.64%
EPS Next 2Y27.69%
EPS Next 3Y14.85%
EPS Next 5Y6.49%
Revenue Next Year11.1%
Revenue Next 2Y10.87%
Revenue Next 3Y7.11%
Revenue Next 5Y8.19%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.04, the valuation of ARX can be described as very reasonable.
71.69% of the companies in the same industry are more expensive than ARX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ARX to the average of the S&P500 Index (26.06), we can say ARX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.75, the valuation of ARX can be described as very cheap.
79.00% of the companies in the same industry are more expensive than ARX, based on the Price/Forward Earnings ratio.
ARX is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 7.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaply inside the industry as 87.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARX is valued a bit cheaper than 73.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.19 | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
ARX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ARX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ARX's earnings are expected to grow with 14.85% in the coming years.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y27.69%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
ARX has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.97, ARX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, ARX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of ARX has a limited annual growth rate of 2.59%.
ARX has paid a dividend for at least 10 years, which is a reliable track record.
ARX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.59%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
28.39% of the earnings are spent on dividend by ARX. This is a low number and sustainable payout ratio.
The dividend of ARX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.39%
EPS Next 2Y27.69%
EPS Next 3Y14.85%
TSX:ARX (11/7/2025, 7:00:00 PM)
23.89
-2.28 (-8.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners41.5%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap13.89B
Revenue(TTM)5.12B
Net Income(TTM)1.50B
Analysts84.17
Price Target33.72 (41.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend0.68
Dividend Growth(5Y)2.59%
DP28.39%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.52%
Min EPS beat(2)-6.74%
Max EPS beat(2)39.77%
EPS beat(4)3
Avg EPS beat(4)27.75%
Min EPS beat(4)-6.74%
Max EPS beat(4)57.44%
EPS beat(8)5
Avg EPS beat(8)19.88%
EPS beat(12)9
Avg EPS beat(12)29.45%
EPS beat(16)11
Avg EPS beat(16)16.61%
Revenue beat(2)2
Avg Revenue beat(2)12.95%
Min Revenue beat(2)12.52%
Max Revenue beat(2)13.38%
Revenue beat(4)4
Avg Revenue beat(4)9.41%
Min Revenue beat(4)3.66%
Max Revenue beat(4)13.38%
Revenue beat(8)8
Avg Revenue beat(8)12.74%
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)-2.05%
PT rev (3m)-3.69%
EPS NQ rev (1m)2.73%
EPS NQ rev (3m)-12.02%
EPS NY rev (1m)-4.44%
EPS NY rev (3m)-16.45%
Revenue NQ rev (1m)-9.49%
Revenue NQ rev (3m)-10.2%
Revenue NY rev (1m)-5.82%
Revenue NY rev (3m)-5.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 7.75 | ||
| P/S | 2.43 | ||
| P/FCF | 12.19 | ||
| P/OCF | 4.82 | ||
| P/B | 1.67 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 5.18 |
EPS(TTM)2.38
EY9.96%
EPS(NY)3.08
Fwd EY12.9%
FCF(TTM)1.96
FCFY8.2%
OCF(TTM)4.96
OCFY20.74%
SpS9.83
BVpS14.27
TBVpS13.84
PEG (NY)0.22
PEG (5Y)N/A
Graham Number27.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.58% | ||
| ROE | 18.08% | ||
| ROCE | 13.16% | ||
| ROIC | 10.19% | ||
| ROICexc | 11.01% | ||
| ROICexgc | 11.25% | ||
| OM | 29.11% | ||
| PM (TTM) | 26.24% | ||
| GM | 69.84% | ||
| FCFM | 19.93% |
ROA(3y)13.76%
ROA(5y)7.43%
ROE(3y)23.41%
ROE(5y)12.78%
ROIC(3y)16.99%
ROIC(5y)13.58%
ROICexc(3y)17.05%
ROICexc(5y)13.61%
ROICexgc(3y)17.46%
ROICexgc(5y)13.96%
ROCE(3y)21.94%
ROCE(5y)17.54%
ROICexgc growth 3Y-21.36%
ROICexgc growth 5Y39.3%
ROICexc growth 3Y-21.23%
ROICexc growth 5Y40.04%
OM growth 3Y-15.37%
OM growth 5Y23.89%
PM growth 3Y12.7%
PM growth 5YN/A
GM growth 3Y-2.53%
GM growth 5Y-0.87%
F-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 124.06% | ||
| Cap/Sales | 30.48% | ||
| Interest Coverage | 15.25 | ||
| Cash Conversion | 93.92% | ||
| Profit Quality | 75.96% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.45 |
F-Score8
WACC7.35%
ROIC/WACC1.39
Cap/Depr(3y)124.75%
Cap/Depr(5y)99.95%
Cap/Sales(3y)28.25%
Cap/Sales(5y)26.97%
Profit Quality(3y)61.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.38%
EPS 3Y14.78%
EPS 5YN/A
EPS Q2Q%-30.72%
EPS Next Y44.64%
EPS Next 2Y27.69%
EPS Next 3Y14.85%
EPS Next 5Y6.49%
Revenue 1Y (TTM)-9.67%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%-5.05%
Revenue Next Year11.1%
Revenue Next 2Y10.87%
Revenue Next 3Y7.11%
Revenue Next 5Y8.19%
EBIT growth 1Y25.39%
EBIT growth 3Y-15.42%
EBIT growth 5Y64.86%
EBIT Next Year147.63%
EBIT Next 3Y42.7%
EBIT Next 5Y20.59%
FCF growth 1Y-19.97%
FCF growth 3Y-18.47%
FCF growth 5YN/A
OCF growth 1Y-6.24%
OCF growth 3Y5.39%
OCF growth 5Y29.74%
ARC RESOURCES LTD / ARX.CA FAQ
What is the ChartMill fundamental rating of ARC RESOURCES LTD (ARX.CA) stock?
ChartMill assigns a fundamental rating of 8 / 10 to ARX.CA.
What is the valuation status for ARX stock?
ChartMill assigns a valuation rating of 9 / 10 to ARC RESOURCES LTD (ARX.CA). This can be considered as Undervalued.
What is the profitability of ARX stock?
ARC RESOURCES LTD (ARX.CA) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ARX stock?
The Price/Earnings (PE) ratio for ARC RESOURCES LTD (ARX.CA) is 10.04 and the Price/Book (PB) ratio is 1.67.
What is the expected EPS growth for ARC RESOURCES LTD (ARX.CA) stock?
The Earnings per Share (EPS) of ARC RESOURCES LTD (ARX.CA) is expected to grow by 44.64% in the next year.