ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
25.91 CAD
-0.32 (-1.22%)
Overall ARX gets a fundamental rating of 6 out of 10. We evaluated ARX against 218 industry peers in the Oil, Gas & Consumable Fuels industry. While ARX has a great profitability rating, there are some minor concerns on its financial health. ARX may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Of the past 5 years ARX 4 years were profitable.
Each year in the past 5 years ARX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ARX (9.13%) is better than 91.74% of its industry peers.
ARX's Return On Equity of 16.89% is amongst the best of the industry. ARX outperforms 94.04% of its industry peers.
ARX has a better Return On Invested Capital (9.99%) than 92.66% of its industry peers.
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 86.70% of its industry peers.
In the last couple of years the Profit Margin of ARX has grown nicely.
Looking at the Operating Margin, with a value of 29.83%, ARX belongs to the top of the industry, outperforming 83.03% of the companies in the same industry.
ARX's Operating Margin has improved in the last couple of years.
ARX has a Gross Margin of 70.10%. This is amongst the best in the industry. ARX outperforms 88.99% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARX 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 2.22. 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 Altman-Z score of 2.22. This is in the better half of the industry: ARX outperforms 71.56% 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.
ARX's Debt to FCF ratio of 2.99 is amongst the best of the industry. ARX outperforms 87.61% 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.
ARX has a Debt to Equity ratio of 0.40. This is comparable to the rest of the industry: ARX outperforms 52.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.22 |
ROIC/WACC1.36
WACC7.34%
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: 66.51% of the companies in the same industry are doing better.
A Quick Ratio of 0.53 indicates that ARX may have some problems paying its short term obligations.
ARX's Quick ratio of 0.53 is on the low side compared to the rest of the industry. ARX is outperformed by 64.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
ARX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.86%, which is quite good.
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.
Looking at the last year, ARX shows a quite strong growth in Revenue. The Revenue has grown by 16.22% in the last year.
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
ARX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.55% yearly.
The Revenue is expected to grow by 7.10% on average over the next years.
EPS Next Y30.46%
EPS Next 2Y16.22%
EPS Next 3Y14.81%
EPS Next 5Y6.55%
Revenue Next Year16.14%
Revenue Next 2Y8.51%
Revenue Next 3Y6.32%
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
Based on the Price/Earnings ratio of 10.93, 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 72.02% of the companies listed in the same industry.
ARX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.54.
ARX is valuated reasonably with a Price/Forward Earnings ratio of 10.15.
ARX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARX is cheaper than 69.27% of the companies in the same industry.
ARX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARX indicates a rather cheap valuation: ARX is cheaper than 85.32% of the companies listed in the same industry.
80.28% of the companies in the same industry are more expensive than ARX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 5.92 |
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.
The excellent profitability rating of ARX may justify a higher PE ratio.
ARX's earnings are expected to grow with 14.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y16.22%
EPS Next 3Y14.81%
5. Dividend
5.1 Amount
ARX has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
ARX's Dividend Yield is a higher than the industry average which is at 6.83.
Compared to an average S&P500 Dividend Yield of 2.27, ARX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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 2Y16.22%
EPS Next 3Y14.81%
TSX:ARX (12/12/2025, 7:00:00 PM)
25.91
-0.32 (-1.22%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners42.99%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap14.91B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts83.33
Price Target31.71 (22.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)-5.96%
PT rev (3m)-8.74%
EPS NQ rev (1m)-5.4%
EPS NQ rev (3m)-14.74%
EPS NY rev (1m)-9.8%
EPS NY rev (3m)-13.81%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-5.7%
Revenue NY rev (1m)4.54%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 10.15 | ||
| P/S | 2.54 | ||
| P/FCF | 11.58 | ||
| P/OCF | 4.85 | ||
| P/B | 1.82 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 5.92 |
EPS(TTM)2.37
EY9.15%
EPS(NY)2.55
Fwd EY9.85%
FCF(TTM)2.24
FCFY8.64%
OCF(TTM)5.35
OCFY20.63%
SpS10.21
BVpS14.26
TBVpS13.82
PEG (NY)0.36
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 | 2.22 |
F-Score5
WACC7.34%
ROIC/WACC1.36
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 Y30.46%
EPS Next 2Y16.22%
EPS Next 3Y14.81%
EPS Next 5Y6.55%
Revenue 1Y (TTM)16.22%
Revenue growth 3Y-0.06%
Revenue growth 5Y33.07%
Sales Q2Q%13.98%
Revenue Next Year16.14%
Revenue Next 2Y8.51%
Revenue Next 3Y6.32%
Revenue Next 5Y7.1%
EBIT growth 1Y47.68%
EBIT growth 3Y-15.42%
EBIT growth 5Y64.86%
EBIT Next Year147.31%
EBIT Next 3Y39.73%
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.
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 10.93 and the Price/Book (PB) ratio is 1.82.
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 30.46% in the next year.