ARC RESOURCES LTD (ARX.CA) Fundamental Analysis & Valuation

TSX:ARX • CA00208D4084

Current stock price

29.39 CAD
+0.43 (+1.48%)
Last:

This ARX.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ARX.CA Profitability Analysis

1.1 Basic Checks

  • In the past year ARX was profitable.
  • ARX had a positive operating cash flow in the past year.
  • In the past 5 years ARX has always been profitable.
  • In the past 5 years ARX always reported a positive cash flow from operatings.
ARX.CA Yearly Net Income VS EBIT VS OCF VS FCFARX.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 8.33%, ARX belongs to the top of the industry, outperforming 92.38% of the companies in the same industry.
  • ARX's Return On Equity of 15.43% is amongst the best of the industry. ARX outperforms 92.86% of its industry peers.
  • ARX has a Return On Invested Capital of 9.93%. This is amongst the best in the industry. ARX outperforms 94.76% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ARX is above the industry average of 6.65%.
  • The last Return On Invested Capital (9.93%) for ARX is above the 3 year average (9.81%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.33%
ROE 15.43%
ROIC 9.93%
ROA(3y)9.93%
ROA(5y)11.3%
ROE(3y)17.02%
ROE(5y)19.79%
ROIC(3y)9.81%
ROIC(5y)15.4%
ARX.CA Yearly ROA, ROE, ROICARX.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

1.3 Margins

  • With an excellent Profit Margin value of 20.92%, ARX belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ARX has declined.
  • Looking at the Operating Margin, with a value of 28.98%, ARX belongs to the top of the industry, outperforming 84.76% of the companies in the same industry.
  • ARX's Operating Margin has improved in the last couple of years.
  • The Gross Margin of ARX (68.82%) is better than 84.76% of its industry peers.
  • In the last couple of years the Gross Margin of ARX has declined.
Industry RankSector Rank
OM 28.98%
PM (TTM) 20.92%
GM 68.82%
OM growth 3Y-14.62%
OM growth 5Y41.01%
PM growth 3Y-7.68%
PM growth 5YN/A
GM growth 3Y-1.92%
GM growth 5Y-2%
ARX.CA Yearly Profit, Operating, Gross MarginsARX.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. ARX.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARX is creating some value.
  • Compared to 1 year ago, ARX has less shares outstanding
  • The number of shares outstanding for ARX has been increased compared to 5 years ago.
  • ARX has a worse debt/assets ratio than last year.
ARX.CA Yearly Shares OutstandingARX.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
ARX.CA Yearly Total Debt VS Total AssetsARX.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • ARX has an Altman-Z score of 2.38. 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.
  • ARX has a better Altman-Z score (2.38) than 72.38% of its industry peers.
  • The Debt to FCF ratio of ARX is 3.25, which is a good value as it means it would take ARX, 3.25 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ARX (3.25) is better than 87.14% of its industry peers.
  • A Debt/Equity ratio of 0.41 indicates that ARX is not too dependend on debt financing.
  • ARX has a Debt to Equity ratio (0.41) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 3.25
Altman-Z 2.38
ROIC/WACC1.38
WACC7.18%
ARX.CA Yearly LT Debt VS Equity VS FCFARX.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.70 indicates that ARX may have some problems paying its short term obligations.
  • ARX has a Current ratio (0.70) which is in line with its industry peers.
  • A Quick Ratio of 0.69 indicates that ARX may have some problems paying its short term obligations.
  • ARX has a Quick ratio of 0.69. This is comparable to the rest of the industry: ARX outperforms 53.33% of its industry peers.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.69
ARX.CA Yearly Current Assets VS Current LiabilitesARX.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ARX.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 15.87% over the past year.
  • The Earnings Per Share has been growing by 32.81% on average over the past years. This is a very strong growth
  • The Revenue has grown by 19.08% 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 39.96% on average per year.
EPS 1Y (TTM)15.87%
EPS 3Y-13.12%
EPS 5Y32.81%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y-11.05%
Revenue growth 5Y39.96%
Sales Q2Q%15.55%

3.2 Future

  • The Earnings Per Share is expected to decrease by -1.87% on average over the next years.
  • Based on estimates for the next years, ARX will show a small growth in Revenue. The Revenue will grow by 1.72% on average per year.
EPS Next Y-7.37%
EPS Next 2Y-2.61%
EPS Next 3Y-3.27%
EPS Next 5Y-1.87%
Revenue Next Year3.01%
Revenue Next 2Y2.12%
Revenue Next 3Y2.55%
Revenue Next 5Y1.72%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ARX.CA Yearly Revenue VS EstimatesARX.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
ARX.CA Yearly EPS VS EstimatesARX.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 -1 2 3

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6

4. ARX.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • ARX is valuated correctly with a Price/Earnings ratio of 13.42.
  • 71.90% of the companies in the same industry are more expensive than ARX, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 24.89. ARX is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 14.49, the valuation of ARX can be described as correct.
  • 74.76% of the companies in the same industry are more expensive than ARX, based on the Price/Forward Earnings ratio.
  • ARX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.42
Fwd PE 14.49
ARX.CA Price Earnings VS Forward Price EarningsARX.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaper than 86.67% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ARX is valued cheaply inside the industry as 82.38% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.95
EV/EBITDA 6.24
ARX.CA Per share dataARX.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

  • The excellent profitability rating of ARX may justify a higher PE ratio.
  • ARX's earnings are expected to decrease with -3.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y-2.61%
EPS Next 3Y-3.27%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. ARX.CA Dividend Analysis

5.1 Amount

  • ARX has a Yearly Dividend Yield of 2.90%.
  • Compared to an average industry Dividend Yield of 4.54, ARX pays a bit more dividend than its industry peers.
  • ARX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.9%

5.2 History

  • On average, the dividend of ARX grows each year by 21.35%, which is quite nice.
  • 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)21.35%
Div Incr Years3
Div Non Decr Years3
ARX.CA Yearly Dividends per shareARX.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

  • ARX pays out 34.82% of its income as dividend. This is a sustainable payout ratio.
DP34.82%
EPS Next 2Y-2.61%
EPS Next 3Y-3.27%
ARX.CA Yearly Income VS Free CF VS DividendARX.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B 2B
ARX.CA Dividend Payout.ARX.CA Dividend Payout, showing the Payout Ratio.ARX.CA Dividend Payout.PayoutRetained Earnings

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ARX.CA Fundamentals: All Metrics, Ratios and Statistics

ARC RESOURCES LTD

TSX:ARX (3/27/2026, 7:00:00 PM)

29.39

+0.43 (+1.48%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners42.18%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap16.79B
Revenue(TTM)6.10B
Net Income(TTM)1.28B
Analysts78.4
Price Target29.89 (1.7%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.9%
Yearly Dividend0.77
Dividend Growth(5Y)21.35%
DP34.82%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-27.46%
Min EPS beat(2)-41.04%
Max EPS beat(2)-13.87%
EPS beat(4)1
Avg EPS beat(4)-5.47%
Min EPS beat(4)-41.04%
Max EPS beat(4)39.77%
EPS beat(8)4
Avg EPS beat(8)8.93%
EPS beat(12)7
Avg EPS beat(12)18.3%
EPS beat(16)10
Avg EPS beat(16)13.87%
Revenue beat(2)2
Avg Revenue beat(2)3.77%
Min Revenue beat(2)1.5%
Max Revenue beat(2)6.04%
Revenue beat(4)4
Avg Revenue beat(4)8.36%
Min Revenue beat(4)1.5%
Max Revenue beat(4)13.38%
Revenue beat(8)8
Avg Revenue beat(8)10.45%
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)1.93%
PT rev (3m)-6.22%
EPS NQ rev (1m)11.64%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)-6.72%
EPS NY rev (3m)-12.52%
Revenue NQ rev (1m)6.75%
Revenue NQ rev (3m)11.01%
Revenue NY rev (1m)24.63%
Revenue NY rev (3m)-2.6%
Valuation
Industry RankSector Rank
PE 13.42
Fwd PE 14.49
P/S 2.75
P/FCF 13.95
P/OCF 5.43
P/B 2.03
P/tB 2.09
EV/EBITDA 6.24
EPS(TTM)2.19
EY7.45%
EPS(NY)2.03
Fwd EY6.9%
FCF(TTM)2.11
FCFY7.17%
OCF(TTM)5.42
OCFY18.43%
SpS10.67
BVpS14.47
TBVpS14.03
PEG (NY)N/A
PEG (5Y)0.41
Graham Number26.7
Profitability
Industry RankSector Rank
ROA 8.33%
ROE 15.43%
ROCE 12.78%
ROIC 9.93%
ROICexc 9.93%
ROICexgc 10.11%
OM 28.98%
PM (TTM) 20.92%
GM 68.82%
FCFM 19.73%
ROA(3y)9.93%
ROA(5y)11.3%
ROE(3y)17.02%
ROE(5y)19.79%
ROIC(3y)9.81%
ROIC(5y)15.4%
ROICexc(3y)9.81%
ROICexc(5y)15.44%
ROICexgc(3y)10.01%
ROICexgc(5y)15.81%
ROCE(3y)12.63%
ROCE(5y)19.83%
ROICexgc growth 3Y-32.31%
ROICexgc growth 5Y57.12%
ROICexc growth 3Y-32.14%
ROICexc growth 5Y58.3%
OM growth 3Y-14.62%
OM growth 5Y41.01%
PM growth 3Y-7.68%
PM growth 5YN/A
GM growth 3Y-1.92%
GM growth 5Y-2%
F-Score6
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 3.25
Debt/EBITDA 1.01
Cap/Depr 122.19%
Cap/Sales 31.01%
Interest Coverage 13.64
Cash Conversion 93.36%
Profit Quality 94.35%
Current Ratio 0.7
Quick Ratio 0.69
Altman-Z 2.38
F-Score6
WACC7.18%
ROIC/WACC1.38
Cap/Depr(3y)129.32%
Cap/Depr(5y)119.12%
Cap/Sales(3y)33.08%
Cap/Sales(5y)27.26%
Profit Quality(3y)58.35%
Profit Quality(5y)80.09%
High Growth Momentum
Growth
EPS 1Y (TTM)15.87%
EPS 3Y-13.12%
EPS 5Y32.81%
EPS Q2Q%-28.57%
EPS Next Y-7.37%
EPS Next 2Y-2.61%
EPS Next 3Y-3.27%
EPS Next 5Y-1.87%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y-11.05%
Revenue growth 5Y39.96%
Sales Q2Q%15.55%
Revenue Next Year3.01%
Revenue Next 2Y2.12%
Revenue Next 3Y2.55%
Revenue Next 5Y1.72%
EBIT growth 1Y43.75%
EBIT growth 3Y-24.05%
EBIT growth 5Y97.35%
EBIT Next Year94.08%
EBIT Next 3Y26.11%
EBIT Next 5Y12.95%
FCF growth 1Y133.28%
FCF growth 3Y-20.61%
FCF growth 5Y30.31%
OCF growth 1Y31.72%
OCF growth 3Y-6.9%
OCF growth 5Y36.38%

ARC RESOURCES LTD / ARX.CA Fundamental Analysis 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 6 / 10 to ARC RESOURCES LTD (ARX.CA). This can be considered as Fairly Valued.


What is the profitability of ARX stock?

ARC RESOURCES LTD (ARX.CA) has a profitability rating of 8 / 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 -7.37% 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 6 / 10 and the dividend payout ratio is 34.82%.