ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
24.46 CAD
-0.1 (-0.41%)
ARX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 215 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.
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 92.09% of its industry peers.
With an excellent Return On Equity value of 16.89%, ARX belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
ARX's Return On Invested Capital of 9.99% is amongst the best of the industry. ARX outperforms 92.09% 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 6.62%.
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 better Profit Margin (23.58%) than 86.05% of its industry peers.
In the last couple of years the Profit Margin of ARX has grown nicely.
ARX has a better Operating Margin (29.83%) than 81.40% of its industry peers.
ARX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 70.10%, ARX belongs to the top of the industry, outperforming 88.84% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARX is creating value.
Compared to 1 year ago, ARX has less shares outstanding
Compared to 5 years ago, ARX has more shares outstanding
The debt/assets ratio for ARX is higher compared to a year ago.
2.2 Solvency
ARX has an Altman-Z score of 2.13. 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.
ARX's Altman-Z score of 2.13 is fine compared to the rest of the industry. ARX outperforms 71.16% 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 86.98% 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 | 2.13 |
ROIC/WACC1.34
WACC7.45%
2.3 Liquidity
A Current Ratio of 0.54 indicates that ARX may have some problems paying its short term obligations.
With a Current ratio value of 0.54, ARX is not doing good in the industry: 66.98% of the companies in the same industry are doing better.
ARX has a Quick Ratio of 0.54. This is a bad value and indicates that ARX is not financially healthy enough and could expect problems in meeting 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 66.51% 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.
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
The Earnings Per Share is expected to grow by 6.49% on average over the next years.
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 3Y24.32%
EPS Next 5Y6.49%
Revenue Next Year19.4%
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.
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
A Price/Earnings ratio of 10.32 indicates a reasonable valuation of ARX.
Based on the Price/Earnings ratio, ARX is valued a bit cheaper than 72.09% of the companies in the same industry.
ARX is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.94, which indicates a rather cheap valuation of ARX.
Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than the industry average as 74.88% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ARX to the average of the S&P500 Index (36.12), we can say ARX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaper than 86.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARX is valued cheaply inside the industry as 83.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.04 | ||
| EV/EBITDA | 5.6 |
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.
The excellent profitability rating of ARX may justify a higher PE ratio.
ARX's earnings are expected to grow with 24.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y27.69%
EPS Next 3Y24.32%
5. Dividend
5.1 Amount
ARX has a Yearly Dividend Yield of 3.03%. Purely for dividend investing, there may be better candidates out there.
ARX's Dividend Yield is a higher than the industry average which is at 5.81.
Compared to an average S&P500 Dividend Yield of 2.41, ARX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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
ARX pays out 31.41% of its income as dividend. This is a sustainable payout ratio.
ARX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.41%
EPS Next 2Y27.69%
EPS Next 3Y24.32%
TSX:ARX (11/26/2025, 7:00:00 PM)
24.46
-0.1 (-0.41%)
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 Cap14.22B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts84.17
Price Target32.07 (31.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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)-3.67%
EPS NQ rev (3m)-18.44%
EPS NY rev (1m)-1.35%
EPS NY rev (3m)-4.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 7.94 | ||
| P/S | 2.42 | ||
| P/FCF | 11.04 | ||
| P/OCF | 4.62 | ||
| P/B | 1.73 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 5.6 |
EPS(TTM)2.37
EY9.69%
EPS(NY)3.08
Fwd EY12.6%
FCF(TTM)2.21
FCFY9.05%
OCF(TTM)5.29
OCFY21.63%
SpS10.11
BVpS14.11
TBVpS13.68
PEG (NY)0.23
PEG (5Y)N/A
Graham Number27.43
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 | 2.13 |
F-Score5
WACC7.45%
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 3Y24.32%
EPS Next 5Y6.49%
Revenue 1Y (TTM)16.22%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%13.98%
Revenue Next Year19.4%
Revenue Next 2Y10.87%
Revenue Next 3Y7.11%
Revenue Next 5Y8.19%
EBIT growth 1Y47.68%
EBIT growth 3Y-15.42%
EBIT growth 5Y64.86%
EBIT Next Year170.14%
EBIT Next 3Y44.79%
EBIT Next 5Y21.65%
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 10.32 and the Price/Book (PB) ratio is 1.73.
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.