Arcosa, Inc. Fundamental Analysis (NYSE: ACA)
Arcosa, Inc. (NYSE: ACA) shows strong financial fundamentals with a PE ratio of 14.53, profit margin of 17.90%, and ROE of 18.16%. The company generates $2.7B in annual revenue with strong year-over-year growth of 12.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ACA's fundamental strength across five key dimensions:
Efficiency Score
WeakACA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentACA trades at attractive valuation levels.
Growth Score
ModerateACA shows steady but slowing expansion.
Financial Health Score
ExcellentACA maintains a strong and stable balance sheet.
Profitability Score
ExcellentACA achieves industry-leading margins.
Key Financial Metrics
Is ACA Expensive or Cheap?
P/E Ratio
ACA trades at 14.53 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ACA's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Arcosa, Inc. at 2.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.09 times EBITDA. This signals the market has high growth expectations.
How Well Does ACA Make Money?
Net Profit Margin
For every $100 in sales, Arcosa, Inc. keeps $17.90 as profit after all expenses.
Operating Margin
Core operations generate 11.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.16 in profit for every $100 of shareholder equity.
ROA
Arcosa, Inc. generates $9.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Arcosa, Inc. produces operating cash flow of $341.35M, showing steady but balanced cash generation.
Free Cash Flow
Arcosa, Inc. produces free cash flow of $135.22M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.75 in free cash annually.
FCF Yield
ACA converts 1.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ACA Stacks Against Its Sector Peers
| Metric | ACA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.53 | 27.26 | Better (Cheaper) |
| ROE | 18.16% | 1196.00% | Weak |
| Net Margin | 17.90% | 224.00% | Weak |
| Debt/Equity | 0.48 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 3.12 | 3.13 | Strong Liquidity |
| ROA | 9.27% | 2757.00% | Weak |
ACA outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Arcosa, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.23%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
91.90%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
28.83%
Industry Style: Cyclical, Commodity, Value
High Growth