ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
24.79 CAD
-0.28 (-1.12%)
ARX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. While ARX has a great profitability rating, 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.
ARX had a positive operating cash flow in the past year.
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 Return On Assets of 9.13%. This is amongst the best in the industry. ARX outperforms 91.51% 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 92.92% of the companies in the same industry.
ARX has a better Return On Invested Capital (9.99%) than 91.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARX is significantly above the industry average of 6.73%.
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
The Profit Margin of ARX (23.58%) is better than 85.38% of its industry peers.
ARX's Profit Margin has improved in the last couple of years.
ARX has a better Operating Margin (29.83%) than 81.13% of its industry peers.
ARX's Operating Margin has improved in the last couple of years.
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.
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 2.15 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARX has a better Altman-Z score (2.15) than 70.75% 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.
The Debt to FCF ratio of ARX (2.99) is better than 86.32% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that ARX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, ARX perfoms like the industry average, outperforming 51.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.33
WACC7.52%
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.
Looking at the Current ratio, with a value of 0.54, ARX is doing worse than 68.87% of the companies in the same industry.
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.
With a Quick ratio value of 0.53, ARX is not doing good in the industry: 67.92% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing by 14.78% on average over the past years. This is quite good.
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
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.
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
Based on the Price/Earnings ratio of 10.46, the valuation of ARX can be described as reasonable.
ARX's Price/Earnings ratio is a bit cheaper when compared to the industry. ARX is cheaper than 71.23% of the companies in the same industry.
ARX is valuated cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.05, the valuation of ARX can be described as reasonable.
Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
ARX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARX indicates a rather cheap valuation: ARX is cheaper than 86.32% of the companies listed in the same industry.
81.13% 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 | 11.19 | ||
| EV/EBITDA | 5.66 |
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
With a Yearly Dividend Yield of 3.03%, ARX has a reasonable but not impressive dividend return.
ARX's Dividend Yield is a higher than the industry average which is at 5.74.
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 | 3.03% |
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.
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 3Y24.32%
TSX:ARX (11/21/2025, 7:00:00 PM)
24.79
-0.28 (-1.12%)
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 Cap14.41B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts84.17
Price Target32.07 (29.37%)
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 | 10.46 | ||
| Fwd PE | 8.05 | ||
| P/S | 2.45 | ||
| P/FCF | 11.19 | ||
| P/OCF | 4.69 | ||
| P/B | 1.76 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 5.66 |
EPS(TTM)2.37
EY9.56%
EPS(NY)3.08
Fwd EY12.43%
FCF(TTM)2.21
FCFY8.93%
OCF(TTM)5.29
OCFY21.34%
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 | 2.15 |
F-Score5
WACC7.52%
ROIC/WACC1.33
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 10.46 and the Price/Book (PB) ratio is 1.76.
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.