ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
23.25 CAD
-0.07 (-0.3%)
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. While ARX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ARX may be a bit undervalued, certainly considering the very reasonable score on growth ARX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- ARX had positive earnings in the past year.
- ARX had a positive operating cash flow in the past year.
- 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 92.89% of its industry peers.
- Looking at the Return On Equity, with a value of 16.89%, ARX belongs to the top of the industry, outperforming 94.79% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 9.99%, ARX belongs to the top of the industry, outperforming 92.89% 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 6.52%.
- 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's Profit Margin of 23.58% is amongst the best of the industry. ARX outperforms 87.68% of its industry peers.
- In the last couple of years the Profit Margin of ARX has grown nicely.
- ARX has a better Operating Margin (29.83%) than 83.89% 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 89.10% 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
- ARX has a worse debt/assets ratio than last year.
2.2 Solvency
- ARX has an Altman-Z score of 2.06. 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's Altman-Z score of 2.06 is fine compared to the rest of the industry. ARX outperforms 70.14% 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.
- 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.
- ARX has a Debt to Equity ratio of 0.40. This is comparable to the rest of the industry: ARX outperforms 53.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.06 |
ROIC/WACC1.38
WACC7.25%
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.
- The Current ratio of ARX (0.54) is worse than 65.40% of its industry peers.
- 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 63.51% 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.
- 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.
- 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.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 9.81, which indicates a very decent valuation of ARX.
- 73.93% 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 27.54. ARX is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 9.83, which indicates a very decent valuation of ARX.
- Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than the industry average as 70.14% of the companies are valued more expensively.
- ARX is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 9.83 |
4.2 Price Multiples
- 88.15% of the companies in the same industry are more expensive than ARX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ARX is valued cheaper than 84.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.39 | ||
| EV/EBITDA | 5.34 |
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)0.65
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.
- Compared to an average S&P500 Dividend Yield of 1.92, ARX pays a better dividend.
| 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.
- ARX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.41%
EPS Next 2Y11.87%
EPS Next 3Y9.46%
TSX:ARX (1/15/2026, 7:00:00 PM)
23.25
-0.07 (-0.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners43.61%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap13.38B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts82.4
Price Target31.88 (37.12%)
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 | 9.81 | ||
| Fwd PE | 9.83 | ||
| P/S | 2.28 | ||
| P/FCF | 10.39 | ||
| P/OCF | 4.35 | ||
| P/B | 1.63 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)2.37
EY10.19%
EPS(NY)2.37
Fwd EY10.17%
FCF(TTM)2.24
FCFY9.62%
OCF(TTM)5.35
OCFY22.99%
SpS10.21
BVpS14.26
TBVpS13.82
PEG (NY)0.65
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 | 2.06 |
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%.