ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - TSX:ARX - CA00208D4084 - Common Stock
25.07 CAD
-0.16 (-0.63%)
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. ARX has an excellent profitability rating, but there are some minor concerns on its financial health. ARX is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
ARX had positive earnings in the past year.
In the past year ARX had a positive cash flow from operations.
ARX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ARX had a positive operating cash flow.
1.2 Ratios
ARX has a better Return On Assets (9.13%) than 91.98% of its industry peers.
ARX has a better Return On Equity (16.89%) than 92.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.99%, ARX belongs to the top of the industry, outperforming 91.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARX is significantly above the industry average of 6.73%.
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 85.38% of its industry peers.
In the last couple of years the Profit Margin of ARX has grown nicely.
ARX has a Operating Margin of 29.83%. This is amongst the best in the industry. ARX outperforms 81.13% of its industry peers.
ARX's Operating Margin has improved in the last couple of years.
ARX's Gross Margin of 70.10% is amongst the best of the industry. ARX outperforms 89.15% 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
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
ARX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.16 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARX has a Altman-Z score of 2.16. This is in the better half of the industry: ARX outperforms 70.28% 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.
ARX's Debt to FCF ratio of 2.99 is amongst the best of the industry. ARX outperforms 85.85% of its industry peers.
ARX has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
ARX has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.32
WACC7.55%
2.3 Liquidity
A Current Ratio of 0.54 indicates that ARX may have some problems paying 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.
A Quick Ratio of 0.53 indicates that ARX may have some problems paying its short term obligations.
ARX has a Quick ratio of 0.53. This is in the lower half of the industry: ARX underperforms 68.40% 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 13.38%, 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.
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.
Based on estimates for the next years, ARX will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
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
ARX is valuated reasonably with a Price/Earnings ratio of 10.53.
Compared to the rest of the industry, the Price/Earnings ratio of ARX indicates a somewhat cheap valuation: ARX is cheaper than 70.28% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.07. ARX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.14 indicates a reasonable valuation of ARX.
Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than 72.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, ARX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 8.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaply inside the industry as 85.85% of the companies are valued more expensively.
80.66% 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 | 11.32 | ||
| EV/EBITDA | 5.71 |
4.3 Compensation for Growth
ARX's 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)0.24
PEG (5Y)N/A
EPS Next 2Y27.69%
EPS Next 3Y24.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.16%, ARX has a reasonable but not impressive dividend return.
ARX's Dividend Yield is a higher than the industry average which is at 5.31.
Compared to an average S&P500 Dividend Yield of 2.44, 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 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.
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 (11/20/2025, 7:00:00 PM)
25.07
-0.16 (-0.63%)
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 Cap14.58B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts84.17
Price Target33.72 (34.5%)
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 | 10.53 | ||
| Fwd PE | 8.14 | ||
| P/S | 2.48 | ||
| P/FCF | 11.32 | ||
| P/OCF | 4.74 | ||
| P/B | 1.78 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)2.38
EY9.49%
EPS(NY)3.08
Fwd EY12.29%
FCF(TTM)2.21
FCFY8.83%
OCF(TTM)5.29
OCFY21.1%
SpS10.11
BVpS14.11
TBVpS13.68
PEG (NY)0.24
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 | 2.16 |
F-Score5
WACC7.55%
ROIC/WACC1.32
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 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 10.53 and the Price/Book (PB) ratio is 1.78.
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.