ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ARX - CA00208D4084 - Common Stock
23.47 CAD
+0.22 (+0.95%)
We assign a fundamental rating of 6 out of 10 to ARX. ARX was compared to 211 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
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
ARX has a Return On Assets of 9.13%. This is amongst the best in the industry. ARX outperforms 92.89% of its industry peers.
ARX's Return On Equity of 16.89% is amongst the best of the industry. ARX outperforms 94.79% of its industry peers.
ARX has a better Return On Invested Capital (9.99%) than 92.89% 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 6.52%.
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
Looking at the Profit Margin, with a value of 23.58%, ARX belongs to the top of the industry, outperforming 87.68% of the companies in the same industry.
In the last couple of years the Profit Margin of ARX has grown nicely.
ARX's Operating Margin of 29.83% is amongst the best of the industry. ARX outperforms 83.89% 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 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
ARX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ARX has been reduced compared to 1 year ago.
ARX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARX is higher compared to a year ago.
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.
ARX has a better Debt to FCF ratio (2.99) than 85.78% of its industry peers.
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 in line with its industry peers.
| 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.
ARX's Current ratio of 0.54 is on the low side compared to the rest of the industry. ARX is outperformed by 65.40% of its industry peers.
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 worse Quick ratio (0.53) than 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.
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
Based on estimates for the next years, ARX will show a small growth in Earnings Per Share. The EPS will grow by 6.55% on average per year.
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
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
Based on the Price/Earnings ratio of 9.90, the valuation of ARX can be described as reasonable.
Based on the Price/Earnings ratio, ARX is valued a bit cheaper than the industry average as 73.46% of the companies are valued more expensively.
ARX is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
ARX is valuated reasonably with a Price/Forward Earnings ratio of 9.92.
Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than 70.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, ARX is valued rather cheaply.
| 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.
ARX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARX is cheaper than 84.36% of the companies in the same industry.
| 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.
The excellent profitability rating of ARX 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
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 (1/9/2026, 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%.