ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
25.35 CAD
+0.34 (+1.36%)
ARX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 215 industry peers in the Oil, Gas & Consumable Fuels industry. While ARX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARX.
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.
In the past 5 years ARX always reported a positive cash flow from operatings.
1.2 Ratios
ARX's Return On Assets of 9.13% is amongst the best of the industry. ARX outperforms 93.02% of its industry peers.
ARX's Return On Equity of 16.89% is amongst the best of the industry. ARX outperforms 94.88% of its industry peers.
With an excellent Return On Invested Capital value of 9.99%, ARX belongs to the best of the industry, outperforming 92.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARX is significantly above the industry average of 6.53%.
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
ARX has a better Profit Margin (23.58%) than 86.98% of its industry peers.
In the last couple of years the Profit Margin of ARX has grown nicely.
ARX's Operating Margin of 29.83% is amongst the best of the industry. ARX outperforms 81.86% 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 88.84% 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
ARX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ARX has less shares outstanding
ARX has more shares outstanding than it did 5 years ago.
ARX has a worse debt/assets ratio than last year.
2.2 Solvency
ARX has an Altman-Z score of 2.16. 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 2.16, ARX is in the better half of the industry, outperforming 71.16% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 2.99, ARX belongs to the best of the industry, outperforming 86.98% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that ARX is not too dependend on debt financing.
The Debt to Equity ratio of ARX (0.40) 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/WACC1.34
WACC7.46%
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's Current ratio of 0.54 is on the low side compared to the rest of the industry. ARX is outperformed by 67.44% of its industry peers.
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.
The Quick ratio of ARX (0.53) is worse than 66.05% 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 12.86% over the past year.
ARX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.78% yearly.
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 6.55% yearly.
Based on estimates for the next years, ARX will show a small growth in Revenue. The Revenue will grow by 7.10% on average per year.
EPS Next Y44.64%
EPS Next 2Y27.69%
EPS Next 3Y8.93%
EPS Next 5Y6.55%
Revenue Next Year6.84%
Revenue Next 2Y10.87%
Revenue Next 3Y7.11%
Revenue Next 5Y7.1%
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
A Price/Earnings ratio of 10.70 indicates a reasonable valuation of ARX.
Based on the Price/Earnings ratio, ARX is valued a bit cheaper than 72.56% of the companies in the same industry.
ARX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.11.
A Price/Forward Earnings ratio of 8.23 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 73.02% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ARX to the average of the S&P500 Index (36.21), we can say ARX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 8.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaply inside the industry as 86.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARX is valued cheaper than 81.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 5.72 |
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.
ARX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y27.69%
EPS Next 3Y8.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, ARX has a reasonable but not impressive dividend return.
ARX's Dividend Yield is a higher than the industry average which is at 5.88.
Compared to an average S&P500 Dividend Yield of 2.32, ARX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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
ARX pays out 31.41% of its income as dividend. This is a 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 3Y8.93%
TSX:ARX (12/1/2025, 7:00:00 PM)
25.35
+0.34 (+1.36%)
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 Cap14.59B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts84.17
Price Target32.07 (26.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)-8.99%
EPS NQ rev (3m)-17.97%
EPS NY rev (1m)-1.35%
EPS NY rev (3m)-4.44%
Revenue NQ rev (1m)-2.86%
Revenue NQ rev (3m)-8.58%
Revenue NY rev (1m)-10.51%
Revenue NY rev (3m)-9.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 8.23 | ||
| P/S | 2.48 | ||
| P/FCF | 11.33 | ||
| P/OCF | 4.74 | ||
| P/B | 1.78 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 5.72 |
EPS(TTM)2.37
EY9.35%
EPS(NY)3.08
Fwd EY12.16%
FCF(TTM)2.24
FCFY8.83%
OCF(TTM)5.35
OCFY21.09%
SpS10.21
BVpS14.26
TBVpS13.82
PEG (NY)0.24
PEG (5Y)N/A
Graham Number27.57
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
WACC7.46%
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)12.86%
EPS 3Y14.78%
EPS 5YN/A
EPS Q2Q%-32.73%
EPS Next Y44.64%
EPS Next 2Y27.69%
EPS Next 3Y8.93%
EPS Next 5Y6.55%
Revenue 1Y (TTM)16.22%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%13.98%
Revenue Next Year6.84%
Revenue Next 2Y10.87%
Revenue Next 3Y7.11%
Revenue Next 5Y7.1%
EBIT growth 1Y47.68%
EBIT growth 3Y-15.42%
EBIT growth 5Y64.86%
EBIT Next Year139.03%
EBIT Next 3Y42.6%
EBIT Next 5Y20.6%
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.
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 10.7 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.