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ARC1

Arco VaraTLSE:ARC1T Stock Report

Market Cap

€29.3m

7D

-5.4%

1Y

133.1%

Updated

06 Dec, 2021

Data

Company Financials
ARC1T fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health4/6
Dividends2/6

ARC1T Stock Overview

Arco Vara AS, together with its subsidiaries, engages in the real estate development and services related to real estate in Estonia, Latvia, and Bulgaria.

Arco Vara Competitors

YIT Oyj

HLSE:YIT

€914.3m

AS Pro Kapital Grupp

TLSE:PKG1T

€82.8m

Price History & Performance

Summary of all time highs, changes and price drops for Arco Vara
Historical stock prices
Current Share Price€2.82
52 Week High€3.30
52 Week Low€1.15
Beta0.58
1 Month Change-7.24%
3 Month Change8.88%
1 Year Change133.06%
3 Year Change171.15%
5 Year Change154.05%
Change since IPO-94.05%

Recent News & Updates

Feb 02
Is Arco Vara (TAL:ARC1T) A Risky Investment?

Is Arco Vara (TAL:ARC1T) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

ARC1TEE Real EstateEE Market
7D-5.4%-0.5%-1.9%
1Y133.1%16.4%38.0%

Return vs Industry: ARC1T exceeded the EE Real Estate industry which returned 16.4% over the past year.

Return vs Market: ARC1T exceeded the EE Market which returned 39.8% over the past year.

Price Volatility

Is ARC1T's price volatile compared to industry and market?
ARC1T volatility
ARC1T Average Weekly Movement7.1%
Real Estate Industry Average Movement4.0%
Market Average Movement4.0%
10% most volatile stocks in EE Market7.4%
10% least volatile stocks in EE Market1.5%

Stable Share Price: ARC1T is more volatile than 75% of EE stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ARC1T's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of EE stocks.

About the Company

FoundedEmployeesCEOWebsite
199212Miko-Ove Niinemaehttps://www.arcovara.com/et/

Arco Vara AS, together with its subsidiaries, engages in the real estate development and services related to real estate in Estonia, Latvia, and Bulgaria. It is involved in the development, construction, and sale of residential and non-residential buildings; rental and operation of own or leased real estate properties; and management of real estate properties. The company also offers real estate brokerage and valuation services.

Arco Vara Fundamentals Summary

How do Arco Vara's earnings and revenue compare to its market cap?
ARC1T fundamental statistics
Market Cap€29.30m
Earnings (TTM)€3.71m
Revenue (TTM)€21.58m

7.9x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARC1T income statement (TTM)
Revenue€21.58m
Cost of Revenue€16.79m
Gross Profit€4.79m
Expenses€1.08m
Earnings€3.71m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)0.36
Gross Margin22.21%
Net Profit Margin17.21%
Debt/Equity Ratio67.4%

How did ARC1T perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

15%

Payout Ratio

Does ARC1T pay a reliable dividends?

See ARC1T dividend history and benchmarks
When do you need to buy ARC1T by to receive an upcoming dividend?
Arco Vara dividend dates
Ex Dividend DateDec 07 2021
Dividend Pay DateDec 15 2021
Days until Ex dividend0 days
Days until Dividend pay date8 days

Does ARC1T pay a reliable dividends?

See ARC1T dividend history and benchmarks

Valuation

Is Arco Vara 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: ARC1T (€2.82) is trading below our estimate of fair value (€17.15)

Significantly Below Fair Value: ARC1T is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ARC1T is good value based on its PE Ratio (7.9x) compared to the European Real Estate industry average (12.1x).

PE vs Market: ARC1T is good value based on its PE Ratio (7.9x) compared to the EE market (16x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARC1T's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARC1T is overvalued based on its PB Ratio (1.8x) compared to the XE Real Estate industry average (1.1x).


Future Growth

How is Arco Vara forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-10.7%

Forecasted Real Estate 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 Arco Vara 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.


Past Performance

How has Arco Vara performed over the past 5 years?

57.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARC1T has high quality earnings.

Growing Profit Margin: ARC1T's current net profit margins (17.2%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: ARC1T's earnings have grown significantly by 57.8% per year over the past 5 years.

Accelerating Growth: ARC1T's earnings growth over the past year (550.4%) exceeds its 5-year average (57.8% per year).

Earnings vs Industry: ARC1T earnings growth over the past year (550.4%) exceeded the Real Estate industry 41.7%.


Return on Equity

High ROE: ARC1T's Return on Equity (23.1%) is considered high.


Financial Health

How is Arco Vara's financial position?


Financial Position Analysis

Short Term Liabilities: ARC1T's short term assets (€19.5M) exceed its short term liabilities (€3.5M).

Long Term Liabilities: ARC1T's short term assets (€19.5M) exceed its long term liabilities (€10.1M).


Debt to Equity History and Analysis

Debt Level: ARC1T's net debt to equity ratio (59%) is considered high.

Reducing Debt: ARC1T's debt to equity ratio has reduced from 127% to 67.4% over the past 5 years.

Debt Coverage: ARC1T's debt is not well covered by operating cash flow (12.8%).

Interest Coverage: ARC1T's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Dividend

What is Arco Vara current dividend yield, its reliability and sustainability?

2.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARC1T's dividend (2.13%) is higher than the bottom 25% of dividend payers in the EE market (2.12%).

High Dividend: ARC1T's dividend (2.13%) is low compared to the top 25% of dividend payers in the EE market (5.3%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ARC1T has been paying a dividend for less than 10 years.

Growing Dividend: ARC1T's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.8%), ARC1T'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?

1.8yrs

Average management tenure


CEO

Miko-Ove Niinemae (28 yo)

1.67yrs

Tenure

Mr. Miko-Ove Niinemae serves as Chief Executive Officer and Member of Management Board of Arco Vara AS since April 30, 2020. He joined the development team of Arco Vara in 2017. He served as Project sales...


Leadership Team

Experienced Management: ARC1T's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ARC1T's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.4%.


Top Shareholders

Company Information

Arco Vara AS's employee growth, exchange listings and data sources


Key Information

  • Name: Arco Vara AS
  • Ticker: ARC1T
  • Exchange: TLSE
  • Founded: 1992
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: €29.295m
  • Shares outstanding: 10.39m
  • Website: https://www.arcovara.com/et/

Number of Employees


Location

  • Arco Vara AS
  • Maakri Street 30
  • Tallinn
  • 10145
  • Estonia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/06 21:44
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
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.