ARC Document Solutions, Inc.
ARC Document Solutions, Inc. Fundamental Analysis
ARC Document Solutions, Inc. (ARC) shows weak financial fundamentals with a PE ratio of 17.51, profit margin of 2.93%, and ROE of 5.34%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ARC's fundamental strength across five key dimensions:
Efficiency Score
WeakARC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentARC trades at attractive valuation levels.
Growth Score
ModerateARC shows steady but slowing expansion.
Financial Health Score
ExcellentARC maintains a strong and stable balance sheet.
Profitability Score
WeakARC struggles to sustain strong margins.
Key Financial Metrics
Is ARC Expensive or Cheap?
P/E Ratio
ARC trades at 17.51 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ARC's PEG of -0.42 indicates potential undervaluation.
Price to Book
The market values ARC Document Solutions, Inc. at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.25 times EBITDA. This is generally considered low.
How Well Does ARC Make Money?
Net Profit Margin
For every $100 in sales, ARC Document Solutions, Inc. keeps $2.93 as profit after all expenses.
Operating Margin
Core operations generate 4.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.34 in profit for every $100 of shareholder equity.
ROA
ARC Document Solutions, Inc. generates $2.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ARC Document Solutions, Inc. produces operating cash flow of $37.20M, showing steady but balanced cash generation.
Free Cash Flow
ARC Document Solutions, Inc. produces free cash flow of $26.27M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.61 in free cash annually.
FCF Yield
ARC converts 17.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ARC Stacks Against Its Sector Peers
| Metric | ARC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.51 | 26.49 | Better (Cheaper) |
| ROE | 5.34% | 1307.00% | Weak |
| Net Margin | 2.93% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.65 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.53 | 10.48 | Neutral |
| ROA | 2.66% | -1549793.00% (disorted) | Weak |
ARC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ARC Document Solutions, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure