ARX

ARC ResourcesTSX:ARX Stock Report

Market Cap

CA$7.5b

7D

2.4%

1Y

66.8%

Updated

22 Sep, 2021

Data

Company Financials +
ARX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance3/6
Financial Health2/6
Dividends2/6

ARX Overview

ARC Resources Ltd. explores, develops, and produces crude oil, natural gas, and natural gas liquids in Canada.

Price History & Performance

Summary of all time highs, changes and price drops for ARC Resources
Historical stock prices
Current Share PriceCA$10.31
52 Week HighCA$5.66
52 Week LowCA$10.75
Beta1.97
1 Month Change29.04%
3 Month Change3.10%
1 Year Change66.83%
3 Year Change-25.45%
5 Year Change-55.33%
Change since IPO3.10%

Recent News & Updates

Sep 10
Here's Why ARC Resources (TSE:ARX) Has A Meaningful Debt Burden

Here's Why ARC Resources (TSE:ARX) Has A Meaningful Debt Burden

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

ARXCA Oil and GasCA Market
7D2.4%-1.7%-1.6%
1Y66.8%56.1%32.3%

Return vs Industry: ARX exceeded the Canadian Oil and Gas industry which returned 48.2% over the past year.

Return vs Market: ARX exceeded the Canadian Market which returned 28.6% over the past year.

Price Volatility

Is ARX's price volatile compared to industry and market?
ARX volatility
ARX Beta1.97
Industry Beta1.77
Market Beta1

Stable Share Price: ARX is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ARX's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996438Terry Andersonhttps://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

How do ARC Resources's earnings and revenue compare to its market cap?
ARX fundamental statistics
Market CapCA$7.47b
Earnings (TTM)CA$109.70m
Revenue (TTM)CA$2.41b

68.1x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARX income statement (TTM)
RevenueCA$2.41b
Cost of RevenueCA$897.10m
Gross ProfitCA$1.51b
ExpensesCA$1.40b
EarningsCA$109.70m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)0.25
Gross Margin62.80%
Net Profit Margin4.55%
Debt/Equity Ratio35.3%

How did ARX perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

98%

Payout Ratio

Does ARX pay a reliable dividends?

See ARX dividend history and benchmarks
When do you need to buy ARX by to receive an upcoming dividend?
ARC Resources dividend dates
Ex Dividend DateSep 28 2021
Dividend Pay DateOct 15 2021
Days until Ex dividend4 days
Days until Dividend pay date21 days

Does ARX pay a reliable dividends?

See ARX dividend history and benchmarks

Valuation

Is ARC Resources undervalued compared to its fair value and its price relative to the market?

28.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARX (CA$10.31) is trading below our estimate of fair value (CA$14.46)

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 (68.1x) compared to the Canadian Oil and Gas industry average (8.5x).

PE vs Market: ARX is poor value based on its PE Ratio (68.1x) compared to the Canadian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: ARX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ARX is good value based on its PB Ratio (1.3x) compared to the CA Oil and Gas industry average (1.7x).


Future Growth

How is ARC Resources forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

112.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARX's forecast earnings growth (112.3% per year) is above the savings rate (1.5%).

Earnings vs Market: ARX's earnings (112.3% per year) are forecast to grow faster than the Canadian market (12% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARX's revenue (28.9% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: ARX's revenue (28.9% per year) is forecast to grow faster 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?

-36.8%

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 -36.8% 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 (44.8%).


Return on Equity

High ROE: ARX's Return on Equity (1.9%) is considered low.


Financial Health

How is ARC Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ARX's short term assets (CA$554.6M) do not cover its short term liabilities (CA$1.5B).

Long Term Liabilities: ARX's short term assets (CA$554.6M) do not cover its long term liabilities (CA$3.9B).


Debt to Equity History and Analysis

Debt Level: ARX's debt to equity ratio (35.3%) is considered satisfactory.

Reducing Debt: ARX's debt to equity ratio has increased from 30.1% to 35.3% over the past 5 years.

Debt Coverage: ARX's debt is well covered by operating cash flow (55.2%).

Interest Coverage: ARX's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

What is ARC Resources's current dividend yield, its reliability and sustainability?

2.56%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 23 2021Ex Dividend DateSep 28 2021Dividend Pay DateOct 15 202117 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ARX's dividend (2.56%) is higher than the bottom 25% of dividend payers in the Canadian market (1.67%).

High Dividend: ARX's dividend (2.56%) is low compared to the top 25% of dividend payers in the Canadian market (4.58%).


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 high payout ratio (97.6%), ARX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARX's dividends in 3 years are forecast to be well covered by earnings (16.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Terry Anderson (52 yo)

1.58yrs

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 ($USD3.04M) is about average for companies of similar size in the Canadian market ($USD3.59M).

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 ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: ARX's board of directors are not considered experienced ( 0.8 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 bought more shares than they have sold 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 105.1%.


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
  • Market Cap: CA$7.472b
  • Shares outstanding: 724.78m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 22:37
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.