ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
26.27 CAD
+0.05 (+0.19%)
We assign a fundamental rating of 6 out of 10 to ARX. ARX was compared to 215 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
In the past year ARX was profitable.
ARX had a positive operating cash flow in the past year.
Of the past 5 years ARX 4 years were profitable.
In the past 5 years ARX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.13%, ARX belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.89%, ARX belongs to the top of the industry, outperforming 94.88% of the companies in the same industry.
ARX has a Return On Invested Capital of 9.99%. This is amongst the best in the industry. ARX outperforms 92.56% of its industry peers.
ARX had an Average Return On Invested Capital over the past 3 years of 16.99%. This 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 Profit Margin of 23.58%. This is amongst the best in the industry. ARX outperforms 86.98% 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 81.86% of its industry peers.
In the last couple of years the Operating Margin of ARX has grown nicely.
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
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.
Compared to 5 years ago, ARX has more shares outstanding
The debt/assets ratio for ARX is higher compared to a year ago.
2.2 Solvency
ARX has an Altman-Z score of 2.21. 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 2.21, ARX is in the better half of the industry, outperforming 71.16% 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.
The Debt to FCF ratio of ARX (2.99) is better than 86.98% 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.
Looking at the Debt to Equity ratio, with a value of 0.40, ARX is in line with its industry, outperforming 53.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.34
WACC7.46%
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 67.44% 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.
ARX has a Quick ratio of 0.53. This is in the lower half of the industry: ARX underperforms 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.
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.
The Revenue has been growing by 33.07% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 6.55% on average over the next years.
ARX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.10% yearly.
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.
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
Based on the Price/Earnings ratio of 11.08, the valuation of ARX can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ARX indicates a somewhat cheap valuation: ARX is cheaper than 72.09% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. ARX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.53 indicates a reasonable valuation of ARX.
Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than the industry average as 70.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, ARX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
ARX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARX is cheaper than 86.05% of the companies in the same industry.
ARX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARX is cheaper than 79.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.74 | ||
| EV/EBITDA | 5.88 |
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.
ARX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.25
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.
Compared to an average industry Dividend Yield of 5.88, ARX pays a bit more dividend than its industry peers.
ARX's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| 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 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
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 3Y8.93%
TSX:ARX (12/4/2025, 7:00:00 PM)
26.27
+0.05 (+0.19%)
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 Cap15.12B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts84.17
Price Target32.07 (22.08%)
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 | 11.08 | ||
| Fwd PE | 8.53 | ||
| P/S | 2.57 | ||
| P/FCF | 11.74 | ||
| P/OCF | 4.91 | ||
| P/B | 1.84 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 5.88 |
EPS(TTM)2.37
EY9.02%
EPS(NY)3.08
Fwd EY11.73%
FCF(TTM)2.24
FCFY8.52%
OCF(TTM)5.35
OCFY20.35%
SpS10.21
BVpS14.26
TBVpS13.82
PEG (NY)0.25
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 | 2.21 |
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 11.08 and the Price/Book (PB) ratio is 1.84.
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.