ARC RESOURCES LTD (ARX.CA) Stock Fundamental Analysis
TSX:ARX • CA00208D4084
24.57 CAD
-0.22 (-0.89%)
Last: Feb 25, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to ARX. ARX was compared to 212 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 These ratings would make ARX suitable for value investing!
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 each of the past 5 years.
- Each year in the past 5 years ARX had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ARX (8.33%) is better than 92.45% of its industry peers.
- ARX's Return On Equity of 15.43% is amongst the best of the industry. ARX outperforms 93.40% of its industry peers.
- The Return On Invested Capital of ARX (9.93%) is better than 92.92% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ARX is above the industry average of 6.59%.
- The last Return On Invested Capital (9.93%) for ARX is above the 3 year average (9.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 15.43% | ||
| ROIC | 9.93% |
ROA(3y)9.93%
ROA(5y)11.3%
ROE(3y)17.02%
ROE(5y)19.79%
ROIC(3y)9.81%
ROIC(5y)15.4%
1.3 Margins
- Looking at the Profit Margin, with a value of 20.92%, ARX belongs to the top of the industry, outperforming 87.74% of the companies in the same industry.
- In the last couple of years the Profit Margin of ARX has declined.
- With an excellent Operating Margin value of 28.98%, ARX belongs to the best of the industry, outperforming 83.02% of the companies in the same industry.
- In the last couple of years the Operating Margin of ARX has grown nicely.
- ARX's Gross Margin of 68.82% is amongst the best of the industry. ARX outperforms 84.43% of its industry peers.
- ARX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.98% | ||
| PM (TTM) | 20.92% | ||
| GM | 68.82% |
OM growth 3Y-14.62%
OM growth 5Y41.01%
PM growth 3Y-7.68%
PM growth 5YN/A
GM growth 3Y-1.92%
GM growth 5Y-2%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARX is still creating some 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
- An Altman-Z score of 2.14 indicates that ARX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ARX's Altman-Z score of 2.14 is fine compared to the rest of the industry. ARX outperforms 70.75% of its industry peers.
- ARX has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as ARX would need 3.25 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 3.25, ARX belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
- ARX has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
- ARX has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: ARX outperforms 53.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.39
WACC7.15%
2.3 Liquidity
- ARX has a Current Ratio of 0.70. 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's Current ratio of 0.70 is in line compared to the rest of the industry. ARX outperforms 48.58% of its industry peers.
- ARX has a Quick Ratio of 0.70. 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 (0.69) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- ARX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.87%, which is quite good.
- Measured over the past years, ARX shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.81% on average per year.
- The Revenue has grown by 19.08% in the past year. This is quite good.
- Measured over the past years, ARX shows a very strong growth in Revenue. The Revenue has been growing by 39.96% on average per year.
EPS 1Y (TTM)15.87%
EPS 3Y-13.12%
EPS 5Y32.81%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y-11.05%
Revenue growth 5Y39.96%
Sales Q2Q%15.55%
3.2 Future
- ARX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.03% yearly.
- The Revenue is expected to grow by 0.84% on average over the next years.
EPS Next Y-0.7%
EPS Next 2Y6.66%
EPS Next 3Y0.43%
EPS Next 5Y-2.03%
Revenue Next Year-20.23%
Revenue Next 2Y-13.55%
Revenue Next 3Y1.35%
Revenue Next 5Y0.84%
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
- With a Price/Earnings ratio of 11.22, the valuation of ARX can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of ARX indicates a somewhat cheap valuation: ARX is cheaper than 74.06% of the companies listed in the same industry.
- ARX is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 11.30, which indicates a very decent valuation of ARX.
- Based on the Price/Forward Earnings ratio, ARX is valued a bit cheaper than 71.70% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.13. ARX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.22 | ||
| Fwd PE | 11.3 |
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 89.15% of the companies listed in the same industry.
- 83.96% 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 | 11.67 | ||
| EV/EBITDA | 5.42 |
4.3 Compensation for Growth
- The excellent profitability rating of ARX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y6.66%
EPS Next 3Y0.43%
5. Dividend
5.1 Amount
- ARX has a Yearly Dividend Yield of 3.37%.
- ARX's Dividend Yield is a higher than the industry average which is at 3.99.
- Compared to an average S&P500 Dividend Yield of 1.80, ARX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
- The dividend of ARX is nicely growing with an annual growth rate of 21.35%!
- 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)21.35%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 34.82% of the earnings are spent on dividend by ARX. This is a low number and sustainable payout ratio.
DP34.82%
EPS Next 2Y6.66%
EPS Next 3Y0.43%
TSX:ARX (2/25/2026, 7:00:00 PM)
24.57
-0.22 (-0.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners43.61%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap14.04B
Revenue(TTM)6.10B
Net Income(TTM)1.28B
Analysts82.4
Price Target31.05 (26.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend0.77
Dividend Growth(5Y)21.35%
DP34.82%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-27.46%
Min EPS beat(2)-41.04%
Max EPS beat(2)-13.87%
EPS beat(4)1
Avg EPS beat(4)-5.47%
Min EPS beat(4)-41.04%
Max EPS beat(4)39.77%
EPS beat(8)4
Avg EPS beat(8)8.93%
EPS beat(12)7
Avg EPS beat(12)18.3%
EPS beat(16)10
Avg EPS beat(16)13.87%
Revenue beat(2)2
Avg Revenue beat(2)3.77%
Min Revenue beat(2)1.5%
Max Revenue beat(2)6.04%
Revenue beat(4)4
Avg Revenue beat(4)8.36%
Min Revenue beat(4)1.5%
Max Revenue beat(4)13.38%
Revenue beat(8)8
Avg Revenue beat(8)10.45%
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)-2.41%
PT rev (3m)-3.18%
EPS NQ rev (1m)-4.6%
EPS NQ rev (3m)-23.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.42%
Revenue NQ rev (1m)1.86%
Revenue NQ rev (3m)3.01%
Revenue NY rev (1m)-21.85%
Revenue NY rev (3m)-24.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.22 | ||
| Fwd PE | 11.3 | ||
| P/S | 2.3 | ||
| P/FCF | 11.67 | ||
| P/OCF | 4.54 | ||
| P/B | 1.7 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 5.42 |
EPS(TTM)2.19
EY8.91%
EPS(NY)2.17
Fwd EY8.85%
FCF(TTM)2.11
FCFY8.57%
OCF(TTM)5.41
OCFY22.04%
SpS10.67
BVpS14.46
TBVpS14.03
PEG (NY)N/A
PEG (5Y)0.34
Graham Number26.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 15.43% | ||
| ROCE | 12.78% | ||
| ROIC | 9.93% | ||
| ROICexc | 9.93% | ||
| ROICexgc | 10.11% | ||
| OM | 28.98% | ||
| PM (TTM) | 20.92% | ||
| GM | 68.82% | ||
| FCFM | 19.73% |
ROA(3y)9.93%
ROA(5y)11.3%
ROE(3y)17.02%
ROE(5y)19.79%
ROIC(3y)9.81%
ROIC(5y)15.4%
ROICexc(3y)9.81%
ROICexc(5y)15.44%
ROICexgc(3y)10.01%
ROICexgc(5y)15.81%
ROCE(3y)12.63%
ROCE(5y)19.83%
ROICexgc growth 3Y-32.31%
ROICexgc growth 5Y57.12%
ROICexc growth 3Y-32.14%
ROICexc growth 5Y58.3%
OM growth 3Y-14.62%
OM growth 5Y41.01%
PM growth 3Y-7.68%
PM growth 5YN/A
GM growth 3Y-1.92%
GM growth 5Y-2%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 122.19% | ||
| Cap/Sales | 31.01% | ||
| Interest Coverage | 13.64 | ||
| Cash Conversion | 93.36% | ||
| Profit Quality | 94.35% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.14 |
F-Score6
WACC7.15%
ROIC/WACC1.39
Cap/Depr(3y)129.32%
Cap/Depr(5y)119.12%
Cap/Sales(3y)33.08%
Cap/Sales(5y)27.26%
Profit Quality(3y)58.35%
Profit Quality(5y)80.09%
High Growth Momentum
Growth
EPS 1Y (TTM)15.87%
EPS 3Y-13.12%
EPS 5Y32.81%
EPS Q2Q%-28.57%
EPS Next Y-0.7%
EPS Next 2Y6.66%
EPS Next 3Y0.43%
EPS Next 5Y-2.03%
Revenue 1Y (TTM)19.08%
Revenue growth 3Y-11.05%
Revenue growth 5Y39.96%
Sales Q2Q%15.55%
Revenue Next Year-20.23%
Revenue Next 2Y-13.55%
Revenue Next 3Y1.35%
Revenue Next 5Y0.84%
EBIT growth 1Y43.75%
EBIT growth 3Y-24.05%
EBIT growth 5Y97.35%
EBIT Next Year100.33%
EBIT Next 3Y22.51%
EBIT Next 5Y12.57%
FCF growth 1Y133.28%
FCF growth 3Y-20.61%
FCF growth 5Y30.31%
OCF growth 1Y31.72%
OCF growth 3Y-6.9%
OCF growth 5Y36.38%
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 7 / 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 8 / 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 decline by -0.7% 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 6 / 10 and the dividend payout ratio is 34.82%.