ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - TSX:ARX - CA00208D4084 - Common Stock
24.68 CAD
+0.63 (+2.62%)
Taking everything into account, ARX scores 7 out of 10 in our fundamental rating. ARX was compared to 214 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
ARX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARX has a better Return On Assets (9.13%) than 92.06% 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 92.99% of the companies in the same industry.
ARX has a better Return On Invested Capital (9.99%) than 91.59% 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 (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
With an excellent Profit Margin value of 23.58%, ARX belongs to the best of the industry, outperforming 85.51% of the companies in the same industry.
In the last couple of years the Profit Margin of ARX has grown nicely.
ARX has a better Operating Margin (29.83%) than 81.31% of its industry peers.
In the last couple of years the Operating Margin of ARX has grown nicely.
ARX has a better Gross Margin (70.10%) than 88.78% 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 | 29.83% | ||
| 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.
The number of shares outstanding for ARX has been reduced compared to 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 2.14 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.14, ARX is doing good in the industry, outperforming 68.69% of the companies in the same industry.
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 85.98% 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 52.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.36
WACC7.32%
2.3 Liquidity
A Current Ratio of 0.54 indicates that ARX may have some problems paying its short term obligations.
ARX has a worse Current ratio (0.54) than 68.22% 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 67.76% 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 13.38% 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.
ARX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.22%.
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)16.22%
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.
ARX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
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.
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
A Price/Earnings ratio of 10.37 indicates a reasonable valuation of ARX.
Based on the Price/Earnings ratio, ARX is valued a bit cheaper than the industry average as 71.50% of the companies are valued more expensively.
ARX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 8.01 indicates a reasonable valuation of ARX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARX indicates a somewhat cheap valuation: ARX is cheaper than 75.70% of the companies listed 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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 8.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaply inside the industry as 85.51% of the companies are valued more expensively.
ARX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARX is cheaper than 83.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.14 | ||
| EV/EBITDA | 5.64 |
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 3.16%. 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 5.20.
Compared to an average S&P500 Dividend Yield of 2.42, ARX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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
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 2Y27.69%
EPS Next 3Y24.32%
TSX:ARX (11/14/2025, 7:00:00 PM)
24.68
+0.63 (+2.62%)
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 Cap14.35B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts84.17
Price Target33.72 (36.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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)0.25%
Min EPS beat(2)-39.28%
Max EPS beat(2)39.77%
EPS beat(4)2
Avg EPS beat(4)3.57%
Min EPS beat(4)-39.28%
Max EPS beat(4)39.77%
EPS beat(8)5
Avg EPS beat(8)17.82%
EPS beat(12)8
Avg EPS beat(12)23%
EPS beat(16)11
Avg EPS beat(16)19.34%
Revenue beat(2)1
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-15.44%
Max Revenue beat(2)13.38%
Revenue beat(4)3
Avg Revenue beat(4)3.53%
Min Revenue beat(4)-15.44%
Max Revenue beat(4)13.38%
Revenue beat(8)7
Avg Revenue beat(8)8.29%
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)-9.12%
EPS NQ rev (3m)-28.07%
EPS NY rev (1m)-4.44%
EPS NY rev (3m)-16.45%
Revenue NQ rev (1m)-1.48%
Revenue NQ rev (3m)-7.36%
Revenue NY rev (1m)1.21%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 8.01 | ||
| P/S | 2.44 | ||
| P/FCF | 11.14 | ||
| P/OCF | 4.66 | ||
| P/B | 1.75 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 5.64 |
EPS(TTM)2.38
EY9.64%
EPS(NY)3.08
Fwd EY12.49%
FCF(TTM)2.21
FCFY8.97%
OCF(TTM)5.29
OCFY21.44%
SpS10.11
BVpS14.11
TBVpS13.68
PEG (NY)0.23
PEG (5Y)N/A
Graham Number27.49
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 | 2.14 |
F-Score5
WACC7.32%
ROIC/WACC1.36
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 3Y24.32%
EPS Next 5Y6.49%
Revenue 1Y (TTM)16.22%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%-5.05%
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 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 10.37 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.