| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
ARX Stock Overview
ARC Resources Ltd. explores, develops, and produces crude oil, natural gas, and natural gas liquids in Canada.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$13.61 |
| 52 Week High | CA$13.64 |
| 52 Week Low | CA$5.88 |
| Beta | 1.8 |
| 1 Month Change | 27.43% |
| 3 Month Change | 17.94% |
| 1 Year Change | 85.42% |
| 3 Year Change | 37.48% |
| 5 Year Change | -36.90% |
| Change since IPO | 36.10% |
Recent News & Updates
ARC Resources Ltd.'s (TSE:ARX) Intrinsic Value Is Potentially 34% Above Its Share Price
In this article we are going to estimate the intrinsic value of ARC Resources Ltd. ( TSE:ARX ) by taking the forecast...
Shareholder Returns
| ARX | CA Oil and Gas | CA Market | |
|---|---|---|---|
| 7D | 11.2% | 4.5% | 1.4% |
| 1Y | 85.4% | 53.4% | 19.1% |
Return vs Industry: ARX exceeded the Canadian Oil and Gas industry which returned 53.4% over the past year.
Return vs Market: ARX exceeded the Canadian Market which returned 19.1% over the past year.
Price Volatility
| ARX volatility | |
|---|---|
| ARX Average Weekly Movement | 5.6% |
| Oil and Gas Industry Average Movement | 9.5% |
| Market Average Movement | 9.7% |
| 10% most volatile stocks in CA Market | 17.7% |
| 10% least volatile stocks in CA Market | 3.7% |
Stable Share Price: ARX is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ARX's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1996 | n/a | Terry Anderson | https://www.arcresources.com |
ARC Resources Ltd. explores, develops, and produces crude oil, natural gas, and natural gas liquids in Canada. The company holds interests in the Montney properties located in northeast British Columbia and northern Alberta; and Pembina Cardium properties in central Alberta. As of December 31, 2020, it had proved plus probable reserves of 929 millions of barrels of oil equivalent.
ARC Resources Fundamentals Summary
| ARX fundamental statistics | |
|---|---|
| Market Cap | CA$9.45b |
| Earnings (TTM) | CA$229.40m |
| Revenue (TTM) | CA$3.70b |
41.2x
P/E Ratio2.6x
P/S RatioIs ARX overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ARX income statement (TTM) | |
|---|---|
| Revenue | CA$3.70b |
| Cost of Revenue | CA$1.36b |
| Gross Profit | CA$2.34b |
| Expenses | CA$2.11b |
| Earnings | CA$229.40m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 10, 2022
| Earnings per share (EPS) | 0.33 |
| Gross Margin | 63.22% |
| Net Profit Margin | 6.19% |
| Debt/Equity Ratio | 33.5% |
How did ARX perform over the long term?
See historical performance and comparisonDividends
2.1%
Current Dividend Yield58%
Payout RatioValuation
Is ARC Resources undervalued compared to its fair value and its price relative to the market?
45.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARX (CA$13.61) is trading below our estimate of fair value (CA$25.08)
Significantly Below Fair Value: ARX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ARX is poor value based on its PE Ratio (41.2x) compared to the Canadian Oil and Gas industry average (8x).
PE vs Market: ARX is poor value based on its PE Ratio (41.2x) compared to the Canadian market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ARX's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ARX is good value based on its PB Ratio (1.7x) compared to the CA Oil and Gas industry average (2.1x).
Future Growth
How is ARC Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
8.9%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if ARX's forecast earnings growth is above the savings rate (1.6%).
Earnings vs Market: Insufficient data to determine if ARX's earnings are forecast to grow faster than the Canadian market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ARX's revenue (8.9% per year) is forecast to grow faster than the Canadian market (5.5% per year).
High Growth Revenue: ARX's revenue (8.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if ARX's Return on Equity is forecast to be high in 3 years time
Past Performance
How has ARC Resources performed over the past 5 years?
-39.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARX has high quality earnings.
Growing Profit Margin: ARX became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: ARX has become profitable over the past 5 years, growing earnings by -39.7% per year.
Accelerating Growth: ARX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: ARX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (159%).
Return on Equity
High ROE: ARX's Return on Equity (4.2%) is considered low.
Financial Health
How is ARC Resources's financial position?
Financial Position Analysis
Short Term Liabilities: ARX's short term assets (CA$616.6M) do not cover its short term liabilities (CA$1.7B).
Long Term Liabilities: ARX's short term assets (CA$616.6M) do not cover its long term liabilities (CA$4.0B).
Debt to Equity History and Analysis
Debt Level: ARX's net debt to equity ratio (33%) is considered satisfactory.
Reducing Debt: ARX's debt to equity ratio has increased from 30.3% to 33.5% over the past 5 years.
Debt Coverage: ARX's debt is well covered by operating cash flow (84%).
Interest Coverage: ARX's interest payments on its debt are well covered by EBIT (3.4x coverage).
Balance Sheet
Dividend
What is ARC Resources's current dividend yield, its reliability and sustainability?
2.10%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARX's dividend (2.1%) is higher than the bottom 25% of dividend payers in the Canadian market (1.57%).
High Dividend: ARX's dividend (2.1%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).
Stability and Growth of Payments
Stable Dividend: ARX's dividend payments have been volatile in the past 10 years.
Growing Dividend: ARX's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.8%), ARX's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ARX's dividends in 3 years are forecast to be well covered by earnings (19.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Terry Anderson (52 yo)
1.92yrs
Tenure
CA$3,865,330
Compensation
Mr. Terry Michael Anderson, P. Eng., has been the Chief Executive Officer and President at ARC Resources Ltd. since February 20, 2020 and serves as its Director since May 7, 2020. Mr. Anderson served as th...
CEO Compensation Analysis
Compensation vs Market: Terry's total compensation ($USD3.08M) is about average for companies of similar size in the Canadian market ($USD3.52M).
Compensation vs Earnings: Terry's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ARX's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
Experienced Board: ARX's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ARX insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 96.5%.
Top Shareholders
Company Information
ARC Resources Ltd.'s employee growth, exchange listings and data sources
Key Information
- Name: ARC Resources Ltd.
- Ticker: ARX
- Exchange: TSX
- Founded: 1996
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: CA$9.452b
- Shares outstanding: 694.49m
- Website: https://www.arcresources.com
Number of Employees
Location
- ARC Resources Ltd.
- 308 - 4th Avenue South West
- Suite 1200
- Calgary
- Alberta
- T2P 0H7
- Canada
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:02 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.