ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
TSX:ARX • CA00208D4084
24.05 CAD
-0.15 (-0.62%)
Last: Feb 12, 2026, 07:00 PM
Taking everything into account, ARX scores 6 out of 10 in our fundamental rating. ARX was compared to 212 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 has a bad growth rate and is valued cheaply. ARX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ARX was profitable.
- ARX had a positive operating cash flow in the past year.
- ARX had positive earnings in 4 of the past 5 years.
- Of the past 5 years ARX 4 years had a positive operating cash flow.
1.2 Ratios
- ARX has a better Return On Assets (9.13%) than 93.40% 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 94.81% 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 92.92% 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 6.50%.
- 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
- The Profit Margin of ARX (23.58%) is better than 88.68% 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 84.43% 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 89.15% 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.
- There is no outstanding debt for ARX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 2.11 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ARX's Altman-Z score of 2.11 is fine compared to the rest of the industry. ARX outperforms 69.81% 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.
- Looking at the Debt to FCF ratio, with a value of 2.99, ARX belongs to the top of the industry, outperforming 86.32% 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.
- ARX's Debt to Equity ratio of 0.40 is in line compared to the rest of the industry. ARX outperforms 54.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.11 |
ROIC/WACC1.34
WACC7.45%
2.3 Liquidity
- ARX has a Current 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 has a Current ratio of 0.54. This is in the lower half of the industry: ARX underperforms 64.62% 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 62.74% 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 15.27% over the past year.
- ARX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.67% yearly.
EPS 1Y (TTM)15.27%
EPS 3Y-13.27%
EPS 5Y32.67%
EPS Q2Q%-30.37%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-8.63%
3.2 Future
- ARX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.67% yearly.
- ARX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.31% yearly.
EPS Next Y-0.18%
EPS Next 2Y6.94%
EPS Next 3Y0.61%
EPS Next 5Y5.67%
Revenue Next Year1.73%
Revenue Next 2Y1.51%
Revenue Next 3Y3.36%
Revenue Next 5Y4.31%
3.3 Evolution
- The EPS 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
- With a Price/Earnings ratio of 11.03, the valuation of ARX can be described as very reasonable.
- ARX's Price/Earnings ratio is a bit cheaper when compared to the industry. ARX is cheaper than 73.58% of the companies in the same industry.
- ARX is valuated cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 11.06, 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 70.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.69, ARX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaper than 88.21% of the companies in the same industry.
- ARX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARX is cheaper than 85.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.75 | ||
| EV/EBITDA | 5.51 |
4.3 Compensation for Growth
- ARX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y6.94%
EPS Next 3Y0.61%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.31%, ARX has a reasonable but not impressive dividend return.
- ARX's Dividend Yield is a higher than the industry average which is at 3.13.
- ARX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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.
- The dividend of ARX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.41%
EPS Next 2Y6.94%
EPS Next 3Y0.61%
TSX:ARX (2/12/2026, 7:00:00 PM)
24.05
-0.15 (-0.62%)
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 Owners43.61%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap13.84B
Revenue(TTM)N/A
Net Income(TTM)1.39B
Analysts82.4
Price Target31.05 (29.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend0.68
Dividend Growth(5Y)2.59%
DP31.41%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)-2.59%
PT rev (3m)-7.92%
EPS NQ rev (1m)-6.31%
EPS NQ rev (3m)-18.12%
EPS NY rev (1m)8.44%
EPS NY rev (3m)-13.73%
Revenue NQ rev (1m)3.17%
Revenue NQ rev (3m)3.84%
Revenue NY rev (1m)8.17%
Revenue NY rev (3m)4.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 11.06 | ||
| P/S | 2.36 | ||
| P/FCF | 10.75 | ||
| P/OCF | 4.5 | ||
| P/B | 1.69 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 5.51 |
EPS(TTM)2.18
EY9.06%
EPS(NY)2.17
Fwd EY9.04%
FCF(TTM)2.24
FCFY9.3%
OCF(TTM)5.35
OCFY22.23%
SpS10.21
BVpS14.26
TBVpS13.82
PEG (NY)N/A
PEG (5Y)0.34
Graham Number26.44
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 | 2.11 |
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)15.27%
EPS 3Y-13.27%
EPS 5Y32.67%
EPS Q2Q%-30.37%
EPS Next Y-0.18%
EPS Next 2Y6.94%
EPS Next 3Y0.61%
EPS Next 5Y5.67%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-8.63%
Revenue Next Year1.73%
Revenue Next 2Y1.51%
Revenue Next 3Y3.36%
Revenue Next 5Y4.31%
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.
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.
What is the profitability of ARX stock?
ARC RESOURCES LTD (ARX.CA) has a profitability rating of 9 / 10.
What is the earnings growth outlook for ARC RESOURCES LTD?
The Earnings per Share (EPS) of ARC RESOURCES LTD (ARX.CA) is expected to decline by -0.18% in the next year.
How sustainable is the dividend of ARC RESOURCES LTD (ARX.CA) stock?
The dividend rating of ARC RESOURCES LTD (ARX.CA) is 7 / 10 and the dividend payout ratio is 31.41%.