DB:BK1

Stock Analysis Report

Executive Summary

ARC Document Solutions, Inc., a reprographics company, provides document solutions worldwide.


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has ARC Document Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BK1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

BK1

-0.5%

DE Commercial Services

2.2%

DE Market


1 Year Return

-69.3%

BK1

-32.0%

DE Commercial Services

-17.2%

DE Market

Return vs Industry: BK1 underperformed the German Commercial Services industry which returned -31.6% over the past year.

Return vs Market: BK1 underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

BK1IndustryMarket
7 Day0.8%-0.5%2.2%
30 Day-49.2%-22.0%-15.7%
90 Day-52.3%-34.0%-24.0%
1 Year-69.0%-69.3%-29.6%-32.0%-14.9%-17.2%
3 Year-81.7%-81.8%-27.1%-33.4%-16.4%-23.3%
5 Year-92.6%-92.6%-35.0%-44.1%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is ARC Document Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BK1 (€0.62) is trading below our estimate of fair value (€5.97)

Significantly Below Fair Value: BK1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BK1 is good value based on its PE Ratio (11.9x) compared to the Commercial Services industry average (95.5x).

PE vs Market: BK1 is good value based on its PE Ratio (11.9x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BK1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BK1 is good value based on its PB Ratio (0.3x) compared to the DE Commercial Services industry average (2.5x).


Next Steps

Future Growth

How is ARC Document Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.6%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ARC Document Solutions has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has ARC Document Solutions performed over the past 5 years?

-32.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BK1 has high quality earnings.

Growing Profit Margin: BK1's current net profit margins (0.8%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: BK1's earnings have declined by -32.8% per year over the past 5 years.

Accelerating Growth: BK1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BK1 had negative earnings growth (-66%) over the past year, making it difficult to compare to the Commercial Services industry average (10.4%).


Return on Equity

High ROE: BK1's Return on Equity (1.9%) is considered low.


Next Steps

Financial Health

How is ARC Document Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: BK1's short term assets ($106.4M) exceed its short term liabilities ($86.4M).

Long Term Liabilities: BK1's short term assets ($106.4M) do not cover its long term liabilities ($126.7M).


Debt to Equity History and Analysis

Debt Level: BK1's debt to equity ratio (40%) is considered satisfactory.

Reducing Debt: BK1's debt to equity ratio has reduced from 185.5% to 40% over the past 5 years.

Debt Coverage: BK1's debt is well covered by operating cash flow (88%).

Interest Coverage: BK1's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: BK1 has a high level of physical assets or inventory.

Debt Coverage by Assets: BK1's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

5.00%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BK1's dividend (5%) is higher than the bottom 25% of dividend payers in the German market (1.68%).

High Dividend: BK1's dividend (5%) is in the top 25% of dividend payers in the German market (4.97%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether BK1's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if BK1's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.9%), BK1's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Suri Kumarakulasingam (66yo)

12.67s

Tenure

US$2,364,213

Compensation

Mr. Kumarakulasingam Suriyakumar, also known as Suri, has been Chief Executive Officer of American Reprographics Company, L.L.C. since June 1, 2007 and its President since 1991. Mr. Suriyakumar served as a ...


CEO Compensation Analysis

Compensation vs Market: Suri's total compensation ($USD2.36M) is above average for companies of similar size in the German market ($USD431.45K).

Compensation vs Earnings: Suri's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Suriyakumar Kumarakulasingam
Chairman12.67yrsUS$2.36m9.88% $3.3m
Jorge Avalos
Chief Financial Officer5yrsUS$871.96k0.79% $264.0k
Dilantha Wijesuriya
Chief Operating officer9yrsUS$1.31m1.45% $481.7k
Rahul Roy
Chief Technology Officer19.42yrsUS$1.53m0.90% $297.4k
Ken Gini
Senior Vice President of Corporate Administrationno datano datano data
David Stickney
Vice President of Corporate Communications & Investor Relationsno datano datano data
Tracey Luttrell
Corporate Counsel & Corporate Secretary1.58yrsno datano data
J. Carlson
Senior Vice President of Mergers & Acquisitionsno datano datano data
Joe Abeyesinhe
Senior Vice President of Purchasingno datano datano data
Ted Buscaglia
Executive Vice President of Global Servicesno datano datano data

9.0yrs

Average Tenure

58yo

Average Age

Experienced Management: BK1's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Suriyakumar Kumarakulasingam
Chairman12.67yrsUS$2.36m9.88% $3.3m
Thomas Formolo
Independent Director15.42yrsUS$110.00k0.46% $151.7k
Mark Mealy
Independent Director15yrsUS$115.00k0.49% $164.2k
John Freeland
Independent Director3.83yrsUS$110.00k0.19% $61.9k
Dewitt McCluggage
Lead Independent Director12.67yrsUS$115.00k0.22% $73.9k
Bradford Brooks
Independent Director1.83yrsUS$101.25k0.12% $39.4k
Cheryl Cook
Independent Director1.25yrsUS$42.50k0.086% $28.5k

11.7yrs

Average Tenure

61yo

Average Age

Experienced Board: BK1's board of directors are seasoned and experienced ( 11.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BK1 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ARC Document Solutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ARC Document Solutions, Inc.
  • Ticker: BK1
  • Exchange: DB
  • Founded:
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$36.635m
  • Listing Market Cap: US$33.206m
  • Shares outstanding: 45.23m
  • Website: https://www.e-arc.com

Number of Employees


Location

  • ARC Document Solutions, Inc.
  • 12657 Alcosta Boulevard
  • Suite 200
  • San Ramon
  • California
  • 94583
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARCNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2005
BK1DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2005

Biography

ARC Document Solutions, Inc., a reprographics company, provides document solutions worldwide. It offers managed print services, an onsite service that places, manages, and optimizes print and imaging equipment in customers' offices, job sites, and other facilities; construction document and information management services, which consists of professional services to manage and distribute documents and information primarily related to construction projects; and archive and information management services that combines software and professional services to facilitate the capture, management, access, and retrieval of documents and information that have been produced in the past. The company also resells printing, imaging, and related equipment primarily to architectural, engineering, and construction firms, as well as provides ancillary services, such as equipment service and maintenance; and offers specialized color printing comprising color printing, finishing and assembly of graphic materials for regional and national retailers, franchises, marketing departments, theme parks, and cultural institutions. In addition, it develops and offers Web-based document management applications, such as SKYSITE, Planwell, and Abacus that facilitates project collaboration, manage print networks, track equipment fleets, create and maintain project document archives, and other document and content management tasks. Further, the company operates 178 offsite service centers that provides its customers with project-related printing of construction documents. It serves senior management teams, information technology and procurement departments, project architects, engineers, general contractors, facilities managers, and others. The company was formerly known as American Reprographics Company and changed its name to ARC Document Solutions, Inc. in 2012. ARC Document Solutions, Inc. is headquartered in San Ramon, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 23:12
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.