ARC RESOURCES LTD (ARX.CA) Fundamental Analysis & Valuation
TSX:ARX • CA00208D4084
Current stock price
24.83 CAD
-0.89 (-3.46%)
Last:
This ARX.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ARX.CA Profitability Analysis
1.1 Basic Checks
- ARX had positive earnings in the past year.
- ARX had a positive operating cash flow in the past year.
- Each year in the past 5 years ARX has been profitable.
- In the past 5 years ARX always reported a positive cash flow from operatings.
1.2 Ratios
- ARX's Return On Assets of 8.33% is amongst the best of the industry. ARX outperforms 92.20% of its industry peers.
- With an excellent Return On Equity value of 15.43%, ARX belongs to the best of the industry, outperforming 93.17% of the companies in the same industry.
- ARX has a better Return On Invested Capital (9.93%) than 94.15% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ARX is above the industry average of 6.85%.
- The last Return On Invested Capital (9.93%) for ARX is above the 3 year average (9.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 15.43% | ||
| ROIC | 9.93% |
ROA(3y)9.93%
ROA(5y)11.3%
ROE(3y)17.02%
ROE(5y)19.79%
ROIC(3y)9.81%
ROIC(5y)15.4%
1.3 Margins
- Looking at the Profit Margin, with a value of 20.92%, ARX belongs to the top of the industry, outperforming 85.85% of the companies in the same industry.
- In the last couple of years the Profit Margin of ARX has declined.
- The Operating Margin of ARX (28.98%) is better than 83.41% of its industry peers.
- ARX's Operating Margin has improved in the last couple of years.
- The Gross Margin of ARX (68.82%) is better than 83.41% of its industry peers.
- ARX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.98% | ||
| PM (TTM) | 20.92% | ||
| GM | 68.82% |
OM growth 3Y-14.62%
OM growth 5Y41.01%
PM growth 3Y-7.68%
PM growth 5YN/A
GM growth 3Y-1.92%
GM growth 5Y-2%
2. ARX.CA Health Analysis
2.1 Basic Checks
- ARX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for ARX has been reduced compared to 1 year ago.
- 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 2.15. 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.
- Looking at the Altman-Z score, with a value of 2.15, ARX is in the better half of the industry, outperforming 69.27% of the companies in the same industry.
- ARX has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as ARX would need 3.25 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 3.25, ARX belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
- A Debt/Equity ratio of 0.41 indicates that ARX is not too dependend on debt financing.
- ARX has a Debt to Equity ratio (0.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.41
WACC7.06%
2.3 Liquidity
- ARX has a Current Ratio of 0.70. This is a bad value and indicates that ARX is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.70, ARX is in line with its industry, outperforming 51.71% of the companies in the same industry.
- A Quick Ratio of 0.69 indicates that ARX may have some problems paying its short term obligations.
- With a Quick ratio value of 0.69, ARX perfoms like the industry average, outperforming 52.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.69 |
3. ARX.CA Growth Analysis
3.1 Past
- ARX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.87%, which is quite good.
- The Earnings Per Share has been growing by 32.81% on average over the past years. This is a very strong growth
- ARX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.08%.
- The Revenue has been growing by 39.96% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)15.87%
EPS 3Y-13.12%
EPS 5Y32.81%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y-11.05%
Revenue growth 5Y39.96%
Sales Q2Q%15.55%
3.2 Future
- Based on estimates for the next years, ARX will show a decrease in Earnings Per Share. The EPS will decrease by -1.87% on average per year.
- The Revenue is expected to grow by 1.00% on average over the next years.
EPS Next Y7.13%
EPS Next 2Y4.52%
EPS Next 3Y6.51%
EPS Next 5Y-1.87%
Revenue Next Year-15.4%
Revenue Next 2Y-8.73%
Revenue Next 3Y1.59%
Revenue Next 5Y1%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. ARX.CA Valuation Analysis
4.1 Price/Earnings Ratio
- ARX is valuated reasonably with a Price/Earnings ratio of 11.34.
- Based on the Price/Earnings ratio, ARX is valued a bit cheaper than 73.66% of the companies in the same industry.
- ARX is valuated cheaply when we compare the Price/Earnings ratio to 27.87, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 10.58, the valuation of ARX can be described as very reasonable.
- ARX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARX is cheaper than 74.15% of the companies in the same industry.
- ARX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaply inside the industry as 88.29% of the companies are valued more expensively.
- 83.90% of the companies in the same industry are more expensive than ARX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.69 | ||
| EV/EBITDA | 5.42 |
4.3 Compensation for Growth
- ARX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of ARX may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)0.35
EPS Next 2Y4.52%
EPS Next 3Y6.51%
5. ARX.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.27%, ARX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.72, 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
- The dividend of ARX is nicely growing with an annual growth rate of 21.35%!
- 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)21.35%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 34.82% of the earnings are spent on dividend by ARX. This is a low number and sustainable payout ratio.
DP34.82%
EPS Next 2Y4.52%
EPS Next 3Y6.51%
ARX.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:ARX (4/17/2026, 7:00:00 PM)
24.83
-0.89 (-3.46%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners42.8%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap14.06B
Revenue(TTM)6.10B
Net Income(TTM)1.28B
Analysts78.33
Price Target30.81 (24.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend0.77
Dividend Growth(5Y)21.35%
DP34.82%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-31 2026-03-31 (0.21)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-27.46%
Min EPS beat(2)-41.04%
Max EPS beat(2)-13.87%
EPS beat(4)1
Avg EPS beat(4)-5.47%
Min EPS beat(4)-41.04%
Max EPS beat(4)39.77%
EPS beat(8)4
Avg EPS beat(8)8.93%
EPS beat(12)7
Avg EPS beat(12)18.3%
EPS beat(16)10
Avg EPS beat(16)13.87%
Revenue beat(2)2
Avg Revenue beat(2)3.77%
Min Revenue beat(2)1.5%
Max Revenue beat(2)6.04%
Revenue beat(4)4
Avg Revenue beat(4)8.36%
Min Revenue beat(4)1.5%
Max Revenue beat(4)13.38%
Revenue beat(8)8
Avg Revenue beat(8)10.45%
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)5.06%
PT rev (3m)-3.17%
EPS NQ rev (1m)23.43%
EPS NQ rev (3m)21.45%
EPS NY rev (1m)15.66%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)2.51%
Revenue NQ rev (3m)13.79%
Revenue NY rev (1m)-14.9%
Revenue NY rev (3m)-17.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 10.58 | ||
| P/S | 2.31 | ||
| P/FCF | 11.69 | ||
| P/OCF | 4.54 | ||
| P/B | 1.7 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 5.42 |
EPS(TTM)2.19
EY8.82%
EPS(NY)2.35
Fwd EY9.45%
FCF(TTM)2.12
FCFY8.56%
OCF(TTM)5.46
OCFY22%
SpS10.77
BVpS14.59
TBVpS14.16
PEG (NY)1.59
PEG (5Y)0.35
Graham Number26.8169 (8%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 15.43% | ||
| ROCE | 12.78% | ||
| ROIC | 9.93% | ||
| ROICexc | 9.93% | ||
| ROICexgc | 10.11% | ||
| OM | 28.98% | ||
| PM (TTM) | 20.92% | ||
| GM | 68.82% | ||
| FCFM | 19.73% |
ROA(3y)9.93%
ROA(5y)11.3%
ROE(3y)17.02%
ROE(5y)19.79%
ROIC(3y)9.81%
ROIC(5y)15.4%
ROICexc(3y)9.81%
ROICexc(5y)15.44%
ROICexgc(3y)10.01%
ROICexgc(5y)15.81%
ROCE(3y)12.63%
ROCE(5y)19.83%
ROICexgc growth 3Y-32.31%
ROICexgc growth 5Y57.12%
ROICexc growth 3Y-32.14%
ROICexc growth 5Y58.3%
OM growth 3Y-14.62%
OM growth 5Y41.01%
PM growth 3Y-7.68%
PM growth 5YN/A
GM growth 3Y-1.92%
GM growth 5Y-2%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 122.19% | ||
| Cap/Sales | 31.01% | ||
| Interest Coverage | 13.64 | ||
| Cash Conversion | 93.36% | ||
| Profit Quality | 94.35% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.15 |
F-Score6
WACC7.06%
ROIC/WACC1.41
Cap/Depr(3y)129.32%
Cap/Depr(5y)119.12%
Cap/Sales(3y)33.08%
Cap/Sales(5y)27.26%
Profit Quality(3y)58.35%
Profit Quality(5y)80.09%
High Growth Momentum
Growth
EPS 1Y (TTM)15.87%
EPS 3Y-13.12%
EPS 5Y32.81%
EPS Q2Q%-28.57%
EPS Next Y7.13%
EPS Next 2Y4.52%
EPS Next 3Y6.51%
EPS Next 5Y-1.87%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y-11.05%
Revenue growth 5Y39.96%
Sales Q2Q%15.55%
Revenue Next Year-15.4%
Revenue Next 2Y-8.73%
Revenue Next 3Y1.59%
Revenue Next 5Y1%
EBIT growth 1Y43.75%
EBIT growth 3Y-24.05%
EBIT growth 5Y97.35%
EBIT Next Year106.04%
EBIT Next 3Y26.18%
EBIT Next 5Y12.99%
FCF growth 1Y133.28%
FCF growth 3Y-20.61%
FCF growth 5Y30.31%
OCF growth 1Y31.72%
OCF growth 3Y-6.9%
OCF growth 5Y36.38%
ARC RESOURCES LTD / ARX.CA Fundamental Analysis 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.
Can you provide the valuation status for ARC RESOURCES LTD?
ChartMill assigns a valuation rating of 7 / 10 to ARC RESOURCES LTD (ARX.CA). This can be considered as Undervalued.
How profitable is ARC RESOURCES LTD (ARX.CA) stock?
ARC RESOURCES LTD (ARX.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ARC RESOURCES LTD (ARX.CA) stock?
The Price/Earnings (PE) ratio for ARC RESOURCES LTD (ARX.CA) is 11.34 and the Price/Book (PB) ratio is 1.7.
How financially healthy is ARC RESOURCES LTD?
The financial health rating of ARC RESOURCES LTD (ARX.CA) is 5 / 10.