ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
25.49 CAD
-0.27 (-1.05%)
We assign a fundamental rating of 6 out of 10 to ARX. ARX was compared to 201 industry peers in the Oil, Gas & Consumable Fuels industry. While ARX has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARX. ARX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ARX had positive earnings in the past year.
ARX had a positive operating cash flow in the past year.
Of the past 5 years ARX 4 years were profitable.
ARX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.13%, ARX belongs to the best of the industry, outperforming 92.49% of the companies in the same industry.
With an excellent Return On Equity value of 16.89%, ARX belongs to the best of the industry, outperforming 94.84% of the companies in the same industry.
ARX has a better Return On Invested Capital (9.99%) than 92.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARX is significantly above the industry average of 6.51%.
The last Return On Invested Capital (9.99%) 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 | 9.13% | ||
| ROE | 16.89% | ||
| ROIC | 9.99% |
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
Looking at the Profit Margin, with a value of 23.58%, ARX belongs to the top of the industry, outperforming 88.73% of the companies in the same industry.
In the last couple of years the Profit Margin of ARX has grown nicely.
Looking at the Operating Margin, with a value of 29.83%, ARX belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
In the last couple of years the Operating Margin of ARX has grown nicely.
With an excellent Gross Margin value of 70.10%, ARX belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
ARX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.83% | ||
| PM (TTM) | 23.58% | ||
| GM | 70.1% |
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
ARX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ARX has less shares outstanding than it did 1 year ago.
ARX has more shares outstanding than it did 5 years ago.
ARX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.17 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARX has a better Altman-Z score (2.17) than 71.83% of its industry peers.
The Debt to FCF ratio of ARX is 2.99, which is a good value as it means it would take ARX, 2.99 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.99, ARX belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
ARX has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ARX (0.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.35
WACC7.4%
2.3 Liquidity
A Current Ratio of 0.54 indicates that ARX may have some problems paying its short term obligations.
ARX has a Current ratio of 0.54. This is in the lower half of the industry: ARX underperforms 66.20% of its industry peers.
A Quick Ratio of 0.53 indicates that ARX may have some problems paying its short term obligations.
ARX has a worse Quick ratio (0.53) than 64.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.86% over the past year.
Measured over the past years, ARX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.78% on average per year.
The Revenue has grown by 16.22% in the past year. This is quite good.
ARX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.07% yearly.
EPS 1Y (TTM)12.86%
EPS 3Y14.78%
EPS 5YN/A
EPS Q2Q%-32.73%
Revenue 1Y (TTM)16.22%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%13.98%
3.2 Future
ARX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.55% yearly.
Based on estimates for the next years, ARX will show a small growth in Revenue. The Revenue will grow by 7.10% on average per year.
EPS Next Y26.3%
EPS Next 2Y10.77%
EPS Next 3Y12.56%
EPS Next 5Y6.55%
Revenue Next Year16.24%
Revenue Next 2Y8.74%
Revenue Next 3Y6.2%
Revenue Next 5Y7.1%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.76, the valuation of ARX can be described as very reasonable.
Based on the Price/Earnings ratio, ARX is valued a bit cheaper than the industry average as 72.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.92, ARX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.99, the valuation of ARX can be described as reasonable.
ARX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARX is cheaper than 68.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ARX to the average of the S&P500 Index (23.46), we can say ARX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
ARX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARX is cheaper than 84.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARX is valued cheaper than 82.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.39 | ||
| EV/EBITDA | 5.74 |
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.
ARX has an outstanding profitability rating, which may justify a higher PE ratio.
ARX's earnings are expected to grow with 12.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y10.77%
EPS Next 3Y12.56%
5. Dividend
5.1 Amount
ARX has a Yearly Dividend Yield of 3.30%.
Compared to an average industry Dividend Yield of 2.95, ARX pays a bit more dividend than its industry peers.
ARX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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
31.41% of the earnings are spent on dividend by ARX. This is a low number and sustainable payout ratio.
ARX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.41%
EPS Next 2Y10.77%
EPS Next 3Y12.56%
TSX:ARX (12/24/2025, 7:00:00 PM)
25.49
-0.27 (-1.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners42.99%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap14.67B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts83.33
Price Target31.88 (25.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend0.68
Dividend Growth(5Y)2.59%
DP31.41%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.63%
Min EPS beat(2)-41.04%
Max EPS beat(2)39.77%
EPS beat(4)2
Avg EPS beat(4)3.13%
Min EPS beat(4)-41.04%
Max EPS beat(4)39.77%
EPS beat(8)5
Avg EPS beat(8)17.6%
EPS beat(12)8
Avg EPS beat(12)22.85%
EPS beat(16)11
Avg EPS beat(16)19.23%
Revenue beat(2)2
Avg Revenue beat(2)7.44%
Min Revenue beat(2)1.5%
Max Revenue beat(2)13.38%
Revenue beat(4)4
Avg Revenue beat(4)7.77%
Min Revenue beat(4)1.5%
Max Revenue beat(4)13.38%
Revenue beat(8)8
Avg Revenue beat(8)10.41%
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)-0.61%
PT rev (3m)-8.26%
EPS NQ rev (1m)-3.98%
EPS NQ rev (3m)-21.24%
EPS NY rev (1m)-12.68%
EPS NY rev (3m)-16.56%
Revenue NQ rev (1m)3.62%
Revenue NQ rev (3m)-5.27%
Revenue NY rev (1m)8.79%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 10.99 | ||
| P/S | 2.5 | ||
| P/FCF | 11.39 | ||
| P/OCF | 4.77 | ||
| P/B | 1.79 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)2.37
EY9.3%
EPS(NY)2.32
Fwd EY9.1%
FCF(TTM)2.24
FCFY8.78%
OCF(TTM)5.35
OCFY20.97%
SpS10.21
BVpS14.26
TBVpS13.82
PEG (NY)0.41
PEG (5Y)N/A
Graham Number27.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.13% | ||
| ROE | 16.89% | ||
| ROCE | 12.9% | ||
| ROIC | 9.99% | ||
| ROICexc | 9.99% | ||
| ROICexgc | 10.18% | ||
| OM | 29.83% | ||
| PM (TTM) | 23.58% | ||
| GM | 70.1% | ||
| FCFM | 21.91% |
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-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 121.47% | ||
| Cap/Sales | 30.44% | ||
| Interest Coverage | 15.96 | ||
| Cash Conversion | 95.38% | ||
| Profit Quality | 92.94% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.17 |
F-Score5
WACC7.4%
ROIC/WACC1.35
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)12.86%
EPS 3Y14.78%
EPS 5YN/A
EPS Q2Q%-32.73%
EPS Next Y26.3%
EPS Next 2Y10.77%
EPS Next 3Y12.56%
EPS Next 5Y6.55%
Revenue 1Y (TTM)16.22%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%13.98%
Revenue Next Year16.24%
Revenue Next 2Y8.74%
Revenue Next 3Y6.2%
Revenue Next 5Y7.1%
EBIT growth 1Y47.68%
EBIT growth 3Y-15.42%
EBIT growth 5Y64.86%
EBIT Next Year147.38%
EBIT Next 3Y39.69%
EBIT Next 5Y21.71%
FCF growth 1Y43.68%
FCF growth 3Y-18.47%
FCF growth 5YN/A
OCF growth 1Y19.53%
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 6 / 10 to ARX.CA.
What is the valuation status for ARX stock?
ChartMill assigns a valuation rating of 8 / 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 10.76 and the Price/Book (PB) ratio is 1.79.
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 26.3% in the next year.