ENXTAM:ARCAD

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent 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

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


Market Performance


7 Day Return

0.6%

ARCAD

-0.8%

NL Construction

1.8%

NL Market


1 Year Return

-6.0%

ARCAD

-23.4%

NL Construction

-24.0%

NL Market

Return vs Industry: ARCAD exceeded the Dutch Construction industry which returned -20.5% over the past year.

Return vs Market: ARCAD exceeded the Dutch Market which returned -22.3% over the past year.


Shareholder returns

ARCADIndustryMarket
7 Day0.6%-0.8%1.8%
30 Day-31.0%-21.8%-17.0%
90 Day-33.0%-26.4%-24.8%
1 Year-3.4%-6.0%-21.2%-23.4%-20.8%-24.0%
3 Year2.4%-5.9%-40.2%-45.0%-4.3%-14.8%
5 Year-47.4%-54.7%-55.8%-62.0%7.3%-13.3%

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?

46.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARCAD (€14.15) is trading below our estimate of fair value (€26.59)

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


Price To Earnings Ratio

PE vs Industry: ARCAD is poor value based on its PE Ratio (101.6x) compared to the Construction industry average (29.8x).

PE vs Market: ARCAD is poor value based on its PE Ratio (101.6x) compared to the Dutch market (14.7x).


Price to Earnings Growth Ratio

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 (1.3x) compared to the NL Construction industry average (1x).


Next Steps

Future Growth

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

3.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ARCAD's forecast earnings growth is above the savings rate (-0.2%).

Earnings vs Market: Insufficient data to determine if ARCAD's earnings are forecast to grow faster than the Dutch market

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

Revenue vs Market: ARCAD's revenue (3.9% per year) is forecast to grow slower than the Dutch market (5.1% per year).

High Growth Revenue: ARCAD's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARCAD's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Arcadis performed over the past 5 years?

-38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARCAD has a large one-off loss of €83.3M impacting its December 31 2019 financial results.

Growing Profit Margin: ARCAD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ARCAD's earnings have declined by -38.3% per year over the past 5 years.

Accelerating Growth: ARCAD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ARCAD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (6.3%).


Return on Equity

High ROE: ARCAD's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

How is Arcadis's financial position?


Financial Position Analysis

Short Term Liabilities: ARCAD's short term assets (€1.7B) exceed its short term liabilities (€1.4B).

Long Term Liabilities: ARCAD's short term assets (€1.7B) exceed its long term liabilities (€788.8M).


Debt to Equity History and Analysis

Debt Level: ARCAD's debt to equity ratio (63.4%) is considered high.

Reducing Debt: ARCAD's debt to equity ratio has reduced from 79.8% to 63.4% over the past 5 years.

Debt Coverage: ARCAD's debt is well covered by operating cash flow (35.6%).

Interest Coverage: ARCAD's interest payments on its debt are well covered by EBIT (4.8x coverage).


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 2.7x debt).


Next Steps

Dividend

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

3.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARCAD's dividend (3.96%) is higher than the bottom 25% of dividend payers in the Dutch market (2.78%).

High Dividend: ARCAD's dividend (3.96%) is low compared to the top 25% of dividend payers in the Dutch market (8%).


Stability and Growth of Payments

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: With its high payout ratio (402.3%), ARCAD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARCAD's dividends in 3 years are forecast to be well covered by earnings (40.8% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Peter W. Oosterveer (62yo)

3s

Tenure

€2,324,000

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 ($USD2.51M) is about average for companies of similar size in the Dutch market ($USD2.02M).

Compensation vs Earnings: Peter W.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter W. Oosterveer
CEO & Chairman of the Executive Board3yrs€2.32m0.41% 5.2m
Gerard Spans
Chief Information Officer7.25yrsno datano data
Jurgen Pullens
Director of Investor Relations4.08yrsno datano data
Bartheke Weerstra
General Counsel & Company Secretary10.25yrsno datano data
Roland Van Dijk
Global Director of Corporate Development6.25yrsno datano data
Erik Blokhuis
Group Executive of Sales & Business Development2yrsno datano data
Sophie Brewitt
Global Chief Marketing Officer1.75yrsno datano data
Jacoline van Blokland
Chief People Officer0.50yrno datano data
Tjerk Van Der Meer
Global Sector Head for Conglomerates and Consumer Goods Industries4.5yrsno datano data
Heather Polinsky
Chief Operating Officer of North America0.25yrno datano data

3.5yrs

Average Tenure

52yo

Average Age

Experienced Management: ARCAD's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ruth Markland
Member of Supervisory Board10.92yrs€77.00kno data
Jan Carel Schönfeld
Member of Supervisory Board11.92yrs€72.00kno data
Gee Ang Wee
Member of Supervisory Board3yrs€84.00kno data
Nicolaas Hoek
Chairman of Supervisory Board5.25yrs€104.00kno data
Deanna Goodwin
Member of Supervisory Board4yrs€80.00kno data
Michiel Lap
Vice Chairman of Supervisory Board4.92yrs€80.00kno data
Michael Putnam
Member of Supervisory Board2yrs€80.00kno data

4.9yrs

Average Tenure

59yo

Average Age

Experienced Board: ARCAD's board of directors are considered experienced (4.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: €1.253b
  • Shares outstanding: 88.57m
  • Website: https://www.arcadis.com

Number of Employees


Location

  • Arcadis NV
  • Symphony
  • 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 offers design, consultancy, engineering, project, and management services for various sectors. The company provides architectural design, landscape architecture, and performance driven architecture services; business advisory services for asset strategy and performance, business transformation and resiliency, investment and finance, and technology and information; and construction management and site supervision, cost management, program management, and project management services. It also offers contract solutions for claims preparation and defense, dispute avoidance and resolution, expert witness, and strategic procurement and contract advice; cost and commercial management, strategic procurement and contract strategy, and whole lifecycle costing services; civil and structural engineering, asset management, electrical engineering, building information modelling, mechanical engineering, and tunneling and underground infrastructure services; and environmental solutions, such as site evaluation and restoration, strategic environmental consulting, environmental construction, and environmental planning services. In addition, the company provides sustainable urban development, transportation planning, and urban planning services; and water supply and treatment, water management, and industrial water treatment services. It serves natural resources, power, retail, transportation, water and utilities, public, and other industrial sectors, as well as cities, commercial developers, contractors, and financial institutions. The company was formerly known as Heidemij NV and changed its name to Arcadis N.V. in October 1997. Arcadis NV was founded in 1888 and is based in Amsterdam, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 21:48
End of Day Share Price2020/04/03 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.