ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
24.46 CAD
+0.26 (+1.07%)
Overall ARX gets a fundamental rating of 6 out of 10. We evaluated ARX against 214 industry peers in the Oil, Gas & Consumable Fuels industry. ARX scores excellent on profitability, 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! Finally ARX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year ARX was profitable.
- 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
- Looking at the Return On Assets, with a value of 9.13%, ARX belongs to the top of the industry, outperforming 92.99% of the companies in the same industry.
- ARX has a Return On Equity of 16.89%. This is amongst the best in the industry. ARX outperforms 94.86% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.99%, ARX belongs to the top of the industry, outperforming 92.99% of the companies in the same industry.
- 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 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 88.32% 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 84.58% of its industry peers.
- 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 89.25% 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.
- ARX has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ARX has been increased compared to 5 years ago.
- Compared to 1 year ago, ARX has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.12 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ARX's Altman-Z score of 2.12 is fine compared to the rest of the industry. ARX outperforms 70.56% of its industry peers.
- The Debt to FCF ratio of ARX is 2.99, which is a good value as it means it would take ARX, 2.99 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 2.99, ARX belongs to the best of the industry, outperforming 85.98% of the companies in the same industry.
- A Debt/Equity ratio of 0.40 indicates that ARX is not too dependend on debt financing.
- ARX has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 2.12 |
ROIC/WACC1.34
WACC7.46%
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 64.49% of its industry peers.
- A Quick Ratio of 0.53 indicates that ARX may have some problems paying its short term obligations.
- The Quick ratio of ARX (0.53) is worse than 62.62% 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.
- ARX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.22%.
- ARX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.07% yearly.
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.
- ARX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.60% yearly.
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
- ARX is valuated reasonably with a Price/Earnings ratio of 10.32.
- Compared to the rest of the industry, the Price/Earnings ratio of ARX indicates a somewhat cheap valuation: ARX is cheaper than 73.83% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, ARX is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.34, the valuation of ARX can be described as reasonable.
- Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than the industry average as 71.03% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, ARX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARX is valued cheaply inside the industry as 88.32% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARX indicates a rather cheap valuation: ARX is cheaper than 83.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.93 | ||
| EV/EBITDA | 5.56 |
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.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y11.87%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
- ARX has a Yearly Dividend Yield of 3.61%.
- ARX's Dividend Yield is a higher than the industry average which is at 2.82.
- ARX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| 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 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
- ARX pays out 31.41% of its income as dividend. This is a 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 (1/20/2026, 7:00:00 PM)
24.46
+0.26 (+1.07%)
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
Inst Owners43.61%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap14.08B
Revenue(TTM)5.88B
Net Income(TTM)1.39B
Analysts82.4
Price Target31.82 (30.09%)
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)0.34%
PT rev (3m)-7.58%
EPS NQ rev (1m)-8.05%
EPS NQ rev (3m)-20.58%
EPS NY rev (1m)-11.8%
EPS NY rev (3m)-23.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-7.48%
Revenue NY rev (3m)-8.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 10.34 | ||
| P/S | 2.4 | ||
| P/FCF | 10.93 | ||
| P/OCF | 4.58 | ||
| P/B | 1.72 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 5.56 |
EPS(TTM)2.37
EY9.69%
EPS(NY)2.37
Fwd EY9.67%
FCF(TTM)2.24
FCFY9.15%
OCF(TTM)5.35
OCFY21.85%
SpS10.21
BVpS14.26
TBVpS13.82
PEG (NY)0.69
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 | 2.12 |
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 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%.