NYSE:ACA

Stock Analysis Report

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Executive Summary

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, energy, and transportation markets in North America.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.6%

ACA

6.1%

US Construction

2.6%

US Market


1 Year Return

30.6%

ACA

2.6%

US Construction

15.4%

US Market

Return vs Industry: ACA exceeded the US Construction industry which returned 2.4% over the past year.

Return vs Market: ACA exceeded the US Market which returned 16.2% over the past year.


Shareholder returns

ACAIndustryMarket
7 Day5.6%6.1%2.6%
30 Day11.5%12.0%6.1%
90 Day36.3%22.4%16.6%
1 Year31.3%30.6%3.3%2.6%17.8%15.4%
3 Yearn/a4.6%2.3%43.9%34.7%
5 Yearn/a32.4%27.5%76.2%57.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACA ($44.45) is trading below our estimate of fair value ($49.24)

Significantly Below Fair Value: ACA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ACA is poor value based on its PE Ratio (18.1x) compared to the US Construction industry average (15.6x).

PE vs Market: ACA is good value based on its PE Ratio (18.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ACA is poor value based on its PEG Ratio (8.1x)


Price to Book Ratio

PB vs Industry: ACA is good value based on its PB Ratio (1.2x) compared to the US Construction industry average (1.6x).


Next Steps

Future Growth

How is Arcosa forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACA's forecast earnings growth (2.2% per year) is above the savings rate (2.2%).

Earnings vs Market: ACA's earnings (2.2% per year) are forecast to grow slower than the US market (22.6% per year).

High Growth Earnings: ACA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACA's revenue (1.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: ACA's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACA's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Arcosa performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACA has high quality earnings.

Growing Profit Margin: ACA's current net profit margins (6.3%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: ACA's earnings have declined by 2.7% per year over the past 5 years.

Accelerating Growth: ACA's earnings growth over the past year (31.2%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: ACA earnings growth over the past year (31.2%) exceeded the Construction industry 16.8%.


Return on Equity

High ROE: ACA's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Arcosa's financial position?


Financial Position Analysis

Short Term Liabilities: ACA's short term assets ($705.9M) exceed its short term liabilities ($285.9M).

Long Term Liabilities: ACA's short term assets ($705.9M) exceed its long term liabilities ($425.2M).


Debt to Equity History and Analysis

Debt Level: ACA's debt to equity ratio (14%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ACA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ACA's debt is well covered by operating cash flow (130.8%).

Interest Coverage: ACA's interest payments on its debt are well covered by EBIT (19.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Arcosa current dividend yield, its reliability and sustainability?

0.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACA's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: ACA's dividend (0.45%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

Stable Dividend: ACA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ACA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ACA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Antonio Carrillo (54 yo)

1.75yrs

Tenure

US$5,773,082

Compensation

Mr. Antonio Carrillo serves as Independent Director at NRG Energy Inc. since October 15, 2019. He serves as Non Independent Director, President and Chief Executive Officer at Arcosa, Inc. since November, 2 ...


CEO Compensation Analysis

Compensation vs Market: Antonio's total compensation ($USD5.77M) is about average for companies of similar size in the US market ($USD4.62M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Antonio Carrillo
President1.75yrsUS$5.77m0.55%
$ 11.3m
Scott Beasley
Chief Financial Officer2.58yrsUS$1.31m0.069%
$ 1.4m
Bryan Stevenson
Chief Legal Officer2.58yrsUS$1.16m0.039%
$ 793.6k
Reid Essl
President of Construction Products2.58yrsUS$721.69k0.069%
$ 1.4m
Kerry Cole
President of Energy Equipment2.58yrsUS$1.39m0.069%
$ 1.4m
Jesse Collins
President of Transportation Products2.58yrsUS$897.53k0.048%
$ 985.6k
Mary Henderson
Chief Accounting Officer2.58yrsno data0.091%
$ 1.9m
Gail Peck
Senior VP of Finance & Treasurer2.58yrsno datano data
Yuki Whitmire
Associate General Counsel & Corporate Secretaryno datano datano data

2.6yrs

Average Tenure

51.5yo

Average Age

Experienced Management: ACA's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Antonio Carrillo
President1.75yrsUS$5.77m0.55%
$ 11.3m
Rhys Best
Independent Non-Executive Chairman1.83yrsUS$343.00k0.097%
$ 2.0m
David Biegler
Independent Director1.92yrsUS$298.46k0.080%
$ 1.6m
Douglas Rock
Independent Director1.92yrsUS$262.88k0.059%
$ 1.2m
Joseph Alvarado
Independent Director1.92yrsUS$234.50k0.020%
$ 401.9k
Ronald Gafford
Independent Director1.92yrsUS$266.37k0.056%
$ 1.1m
John Lindsay
Independent Director1.92yrsUS$230.22k0.020%
$ 401.9k
Melanie Trent
Independent Director1.92yrsUS$243.00k0.020%
$ 401.9k
Jeffrey Craig
Independent Director1.92yrsUS$238.00k0.020%
$ 401.9k

1.9yrs

Average Tenure

68yo

Average Age

Experienced Board: ACA's board of directors are not considered experienced ( 1.9 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: ACA insiders have only sold shares 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

Arcosa, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arcosa, Inc.
  • Ticker: ACA
  • Exchange: NYSE
  • Founded: 2018
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$2.049b
  • Shares outstanding: 48.34m
  • Website: https://www.arcosa.com

Number of Employees


Location

  • Arcosa, Inc.
  • 500 North Akard Street
  • Suite 400
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACANYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2018
ACA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2018
EOBDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2018

Biography

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, energy, and transportation markets in North America. It operates through three seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 00:15
End of Day Share Price2020/08/05 00:00
Earnings2020/06/30
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.