ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
25.01 CAD
+0.41 (+1.67%)
We assign a fundamental rating of 6 out of 10 to ARX. ARX was compared to 215 industry peers in the Oil, Gas & Consumable Fuels industry. ARX has an excellent profitability rating, but 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.
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.
ARX had positive earnings in 4 of the past 5 years.
In the past 5 years ARX always reported a positive cash flow from operatings.
1.2 Ratios
ARX has a Return On Assets of 9.13%. This is amongst the best in the industry. ARX outperforms 93.02% of its industry peers.
Looking at the Return On Equity, with a value of 16.89%, ARX belongs to the top of the industry, outperforming 94.88% of the companies in the same industry.
ARX has a Return On Invested Capital of 9.99%. This is amongst the best in the industry. ARX outperforms 92.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARX is significantly above the industry average of 6.62%.
The 3 year average ROIC (16.99%) for ARX is well above the current ROIC(9.99%). The reason for the recent decline needs to be investigated.
| 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
ARX has a Profit Margin of 23.58%. This is amongst the best in the industry. ARX outperforms 86.98% of its industry peers.
ARX's Profit Margin has improved in the last couple of years.
ARX's Operating Margin of 29.83% is amongst the best of the industry. ARX outperforms 81.86% of its industry peers.
ARX's Operating Margin has improved in the last couple of years.
ARX's Gross Margin of 70.10% is amongst the best of the industry. ARX outperforms 88.84% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARX 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
ARX has an Altman-Z score of 2.15. This is not the best score and indicates that ARX is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ARX (2.15) is better than 71.16% of its industry peers.
ARX has a debt to FCF ratio of 2.99. This is a good value and a sign of high solvency as ARX would need 2.99 years to pay back of all of its debts.
ARX has a Debt to FCF ratio of 2.99. This is amongst the best in the industry. ARX outperforms 86.98% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that ARX is not too dependend on debt financing.
ARX's Debt to Equity ratio of 0.40 is in line compared to the rest of the industry. ARX outperforms 53.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.34
WACC7.46%
2.3 Liquidity
A Current Ratio of 0.54 indicates that ARX may have some problems paying its short term obligations.
The Current ratio of ARX (0.54) is worse than 67.44% of its industry peers.
A Quick Ratio of 0.53 indicates that ARX may have some problems paying its short term obligations.
ARX's Quick ratio of 0.53 is on the low side compared to the rest of the industry. ARX is outperformed by 66.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
ARX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.86%, which is quite good.
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 grown by 16.22% in the past year. This is quite good.
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)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 Y44.64%
EPS Next 2Y27.69%
EPS Next 3Y8.93%
EPS Next 5Y6.55%
Revenue Next Year6.84%
Revenue Next 2Y10.87%
Revenue Next 3Y7.11%
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.
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
ARX is valuated reasonably with a Price/Earnings ratio of 10.55.
Compared to the rest of the industry, the Price/Earnings ratio of ARX indicates a somewhat cheap valuation: ARX is cheaper than 72.56% of the companies listed in the same industry.
ARX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 8.12, the valuation of ARX can be described as very reasonable.
73.49% of the companies in the same industry are more expensive than ARX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARX to the average of the S&P500 Index (36.59), we can say ARX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaper than 86.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARX is valued cheaply inside the industry as 83.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.18 | ||
| EV/EBITDA | 5.65 |
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.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y27.69%
EPS Next 3Y8.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, ARX has a reasonable but not impressive dividend return.
ARX's Dividend Yield is a higher than the industry average which is at 5.87.
ARX's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of ARX has a limited annual growth rate of 2.59%.
ARX has been paying a dividend for at least 10 years, so it has 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
ARX pays out 31.41% of its income as dividend. This is a sustainable payout ratio.
The dividend of ARX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.41%
EPS Next 2Y27.69%
EPS Next 3Y8.93%
TSX:ARX (11/28/2025, 7:00:00 PM)
25.01
+0.41 (+1.67%)
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 Cap14.39B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts84.17
Price Target32.07 (28.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)-6.84%
PT rev (3m)-7.95%
EPS NQ rev (1m)-8.99%
EPS NQ rev (3m)-17.97%
EPS NY rev (1m)-1.35%
EPS NY rev (3m)-4.44%
Revenue NQ rev (1m)-2.86%
Revenue NQ rev (3m)-8.58%
Revenue NY rev (1m)-10.51%
Revenue NY rev (3m)-9.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 8.12 | ||
| P/S | 2.45 | ||
| P/FCF | 11.18 | ||
| P/OCF | 4.68 | ||
| P/B | 1.75 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)2.37
EY9.48%
EPS(NY)3.08
Fwd EY12.32%
FCF(TTM)2.24
FCFY8.95%
OCF(TTM)5.35
OCFY21.37%
SpS10.21
BVpS14.26
TBVpS13.82
PEG (NY)0.24
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 | 2.15 |
F-Score5
WACC7.46%
ROIC/WACC1.34
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 Y44.64%
EPS Next 2Y27.69%
EPS Next 3Y8.93%
EPS Next 5Y6.55%
Revenue 1Y (TTM)16.22%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%13.98%
Revenue Next Year6.84%
Revenue Next 2Y10.87%
Revenue Next 3Y7.11%
Revenue Next 5Y7.1%
EBIT growth 1Y47.68%
EBIT growth 3Y-15.42%
EBIT growth 5Y64.86%
EBIT Next Year139.03%
EBIT Next 3Y42.6%
EBIT Next 5Y20.6%
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 7 / 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 10.55 and the Price/Book (PB) ratio is 1.75.
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.