ENXTAM:ARCAD

Stock Analysis Report

Executive Summary

Arcadis NV operates as a design and consultancy firm for natural and built assets worldwide.

Snowflake

Fundamentals

Adequate balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Arcadis's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.1%

ARCAD

4.7%

NL Construction

2.0%

NL Market


1 Year Return

29.0%

ARCAD

-7.2%

NL Construction

5.7%

NL Market

Return vs Industry: ARCAD exceeded the Dutch Construction industry which returned -7.2% over the past year.

Return vs Market: ARCAD exceeded the Dutch Market which returned 5.7% over the past year.


Shareholder returns

ARCADIndustryMarket
7 Day6.1%4.7%2.0%
30 Day-4.3%-2.6%-0.5%
90 Day2.6%-3.6%-0.9%
1 Year32.7%29.0%-4.4%-7.2%10.4%5.7%
3 Year44.0%32.4%-16.3%-23.1%40.9%25.2%
5 Year-15.1%-26.8%-29.5%-39.6%66.5%33.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ARCAD (€17.55) is trading below our estimate of fair value (€20.14)

Significantly Undervalued: ARCAD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ARCAD is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: ARCAD is unprofitable, so we can't compare its PE Ratio to the Dutch market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ARCAD is overvalued based on its PB Ratio (1.6x) compared to the NL Construction industry average (1.2x).


Next Steps

Future Growth

How is Arcadis forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARCAD is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ARCAD is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ARCAD is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ARCAD's revenue (2.8% per year) is forecast to grow slower than the Dutch market (5.9% per year).

High Growth Revenue: ARCAD's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ARCAD's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Arcadis performed over the past 5 years?

-31.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ARCAD is unprofitable, and losses have increased over the past 5 years at a rate of -31.3% per year.

Accelerating Growth: Unable to compare ARCAD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARCAD is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (8.1%).


Return on Equity

High ROE: ARCAD has a negative Return on Equity (-2.48%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ARCAD is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ARCAD is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Arcadis's financial position?


Financial Position Analysis

Short Term Liabilities: ARCAD's short term assets (€1.5B) exceeds its short term liabilities (€1.2B)

Long Term Liabilities: ARCAD's short term assets (1.5B) exceeds its long term liabilities (856.6M)


Debt to Equity History and Analysis

Debt Level: ARCAD's debt to equity ratio (64%) is considered high

Reducing Debt: ARCAD's debt to equity ratio has reduced from 76.3% to 64% over the past 5 years.

Debt Coverage: ARCAD's debt is well covered by operating cash flow (42.2%).

Interest Coverage: ARCAD is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: ARCAD has a low level of unsold assets or inventory.

Debt Coverage by Assets: ARCAD's debt is covered by short term assets (assets are 2.413630x debt).


Next Steps

Dividend

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

2.68%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.2%markettop25%6.0%industryaverage3.7%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ARCAD's dividend (2.68%) is higher than the bottom 25% of dividend payers in the Dutch market (2.24%).

High Dividend: ARCAD's dividend (2.68%) is low compared to the top 25% of dividend payers in the Dutch market (5.96%).

Stable Dividend: ARCAD's dividend payments have been volatile in the past 10 years.

Growing Dividend: ARCAD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: ARCAD is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ARCAD's dividends in 3 years are forecast to be well covered by earnings (39.6% payout ratio).


Next Steps

Management

What is the CEO of Arcadis's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Peter W. Oosterveer (62yo)

2.5yrs

Tenure

€1,782,000

Compensation

Mr. Peter W. B. Oosterveer has been Chief Executive Officer and Member of Executive Board at ARCADIS NV since April 26, 2017. Mr. Oosterveer served as the Chief Operating Officer of Fluor Corporation since ...


CEO Compensation Analysis

Compensation vs. Market: Peter W.'s total compensation ($USD1.98M) is about average for companies of similar size in the Dutch market ($USD1.76M).

Compensation vs Earnings: Peter W.'s compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

Experienced Management: ARCAD's management team is considered experienced (2 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

59yo

Average Age

Experienced Board: ARCAD's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€1,51417 May 19
Sarah Kuijlaars
EntityIndividual
Role
Chief Financial Officer
CFO & Member of the Executive Board
Shares92
Max Price€16.46
Buy€7,04517 May 19
Peter W. Oosterveer
EntityIndividual
Role
Chief Executive Officer
CEO & Chairman of the Executive Board
Shares428
Max Price€16.46

Ownership Breakdown


Management Team

  • Jurgen Pullens (51yo)

    Director of Investor Relations

    • Tenure: 3.6yrs
  • Stephan Ritter (51yo)

    Group Executive of Innovation & Transformation

    • Tenure: 1.6yrs
    • Compensation: €763.00k
  • Peter W. Oosterveer (62yo)

    CEO & Chairman of the Executive Board

    • Tenure: 2.5yrs
    • Compensation: €1.78m
  • Mary Hopkins (54yo)

    Group Executive of the Americas & for CallisonRTKL

    • Tenure: 1.6yrs
    • Compensation: €997.58k
  • Bartheke Weerstra (46yo)

    General Counsel & Company Secretary

    • Tenure: 9.8yrs
  • Gerard Spans (53yo)

    Chief Information Officer

    • Tenure: 6.8yrs
  • Roland Van Dijk (49yo)

    Global Director of Corporate Development

    • Tenure: 5.8yrs
  • Erik Blokhuis (52yo)

    Group Executive of Sales & Business Development

    • Tenure: 1.5yrs
  • Sarah Kuijlaars (52yo)

    CFO & Member of the Executive Board

    • Tenure: 1.5yrs
    • Compensation: €835.94k
  • Sophie Brewitt

    Global Chief Marketing Officer

    • Tenure: 1.3yrs

Board Members

  • Ruth Markland (66yo)

    Member of Supervisory Board

    • Tenure: 10.4yrs
  • Jan Carel Schönfeld (70yo)

    Member of Supervisory Board

    • Tenure: 11.4yrs
  • Gee Ang Wee (58yo)

    Member of Supervisory Board

    • Tenure: 2.5yrs
  • Niek Hoek (63yo)

    Chairman of Supervisory Board

    • Tenure: 4.8yrs
  • Deanna Goodwin (54yo)

    Member of Supervisory Board

    • Tenure: 3.5yrs
  • Michiel Lap (57yo)

    Vice Chairman of Supervisory Board

    • Tenure: 4.8yrs
  • Michael Putnam (59yo)

    Member of Supervisory Board

    • Tenure: 1.5yrs

Company Information

Arcadis NV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arcadis NV
  • Ticker: ARCAD
  • Exchange: ENXTAM
  • Founded: 1888
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €1.556b
  • Shares outstanding: 88.67m
  • Website: https://www.arcadis.com

Number of Employees


Location

  • Arcadis NV
  • Gustav Mahlerplein 97-103
  • Amsterdam
  • Noord-Holland
  • 1082 MS
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARCA.YOTCPK (Pink Sheets LLC)NY REGISTRY SHUSUSDDec 1993
ARCV.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 1995
ARCADENXTAM (Euronext Amsterdam)YesCommon SharesNLEUROct 1995
0N6BLSE (London Stock Exchange)YesCommon SharesGBEUROct 1995
HIJ2DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1995
ARCADABATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEUROct 1995

Biography

Arcadis NV operates as a design and consultancy firm for natural and built assets worldwide. The company operates through Europe & Middle East, the Americas, Asia Pacific, and CallisonRTKL segments. It off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:45
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.