ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
23.47 CAD
+0.22 (+0.95%)
ARX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 211 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARX. Finally ARX also has an excellent dividend rating.
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.
In the past 5 years ARX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ARX (9.13%) is better than 92.89% of its industry peers.
ARX has a Return On Equity of 16.89%. This is amongst the best in the industry. ARX outperforms 94.79% of its industry peers.
ARX's Return On Invested Capital of 9.99% is amongst the best of the industry. ARX outperforms 92.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARX is significantly above the industry average of 6.52%.
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 Profit Margin of 23.58%. This is amongst the best in the industry. ARX outperforms 87.68% of its industry peers.
ARX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.83%, ARX belongs to the best of the industry, outperforming 83.89% of the companies in the same industry.
In the last couple of years the Operating Margin of ARX has grown nicely.
ARX's Gross Margin of 70.10% is amongst the best of the industry. ARX outperforms 89.10% 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.
Compared to 1 year ago, ARX has less shares outstanding
Compared to 5 years ago, ARX has more shares outstanding
Compared to 1 year ago, ARX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.07 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.07, ARX is in the better half of the industry, outperforming 71.09% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 2.99, ARX belongs to the best of the industry, outperforming 85.78% 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.
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 | 2.07 |
ROIC/WACC1.38
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.54 indicates that ARX may have some problems paying its short term obligations.
With a Current ratio value of 0.54, ARX is not doing good in the industry: 65.40% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.53, ARX is doing worse than 63.51% of the companies in the same industry.
| 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.
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)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 6.60% on average per year.
EPS Next Y15.07%
EPS Next 2Y11.87%
EPS Next 3Y9.46%
EPS Next 5Y6.55%
Revenue Next Year7.46%
Revenue Next 2Y8.74%
Revenue Next 3Y6.2%
Revenue Next 5Y6.6%
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
The Price/Earnings ratio is 9.90, which indicates a very decent valuation of ARX.
Based on the Price/Earnings ratio, ARX is valued a bit cheaper than 73.46% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ARX is valued rather cheaply.
The Price/Forward Earnings ratio is 9.92, which indicates a very decent valuation of ARX.
Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than 70.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. ARX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 9.92 |
4.2 Price Multiples
ARX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARX is cheaper than 88.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARX is valued cheaply inside the industry as 84.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.49 | ||
| EV/EBITDA | 5.38 |
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)0.66
PEG (5Y)N/A
EPS Next 2Y11.87%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, ARX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.71, 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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 2Y11.87%
EPS Next 3Y9.46%
TSX:ARX (1/9/2026, 7:00:00 PM)
23.47
+0.22 (+0.95%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners43.61%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap13.51B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts82.4
Price Target31.88 (35.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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)0.52%
PT rev (3m)-7.41%
EPS NQ rev (1m)-7.63%
EPS NQ rev (3m)-20.58%
EPS NY rev (1m)-11.8%
EPS NY rev (3m)-23.98%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)-5.27%
Revenue NY rev (1m)-7.48%
Revenue NY rev (3m)-8.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 9.92 | ||
| P/S | 2.3 | ||
| P/FCF | 10.49 | ||
| P/OCF | 4.39 | ||
| P/B | 1.65 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 5.38 |
EPS(TTM)2.37
EY10.1%
EPS(NY)2.37
Fwd EY10.08%
FCF(TTM)2.24
FCFY9.53%
OCF(TTM)5.35
OCFY22.78%
SpS10.21
BVpS14.26
TBVpS13.82
PEG (NY)0.66
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 | 2.07 |
F-Score5
WACC7.25%
ROIC/WACC1.38
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 Y15.07%
EPS Next 2Y11.87%
EPS Next 3Y9.46%
EPS Next 5Y6.55%
Revenue 1Y (TTM)16.22%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%13.98%
Revenue Next Year7.46%
Revenue Next 2Y8.74%
Revenue Next 3Y6.2%
Revenue Next 5Y6.6%
EBIT growth 1Y47.68%
EBIT growth 3Y-15.42%
EBIT growth 5Y64.86%
EBIT Next Year148.46%
EBIT Next 3Y40%
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 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.
What is the earnings growth outlook for ARC RESOURCES LTD?
The Earnings per Share (EPS) of ARC RESOURCES LTD (ARX.CA) is expected to grow by 15.07% 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%.