NYSE:ACA

Stock Analysis Report

Executive Summary

Arcosa, Inc. manufactures and sells infrastructure-related products and services for the construction, energy, and transportation markets.

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

-1.4%

NYSE:ACA

0.2%

US Construction

0.9%

US Market


1 Year Return

n/a

NYSE:ACA

-12.8%

US Construction

0.3%

US Market

No trading data on ACA.

No trading data on ACA.


Share holder returns

ACAIndustryMarket
7 Day-1.4%0.2%0.9%
30 Day-10.9%-7.7%-1.9%
90 Day-9.9%-3.9%1.6%
1 Yearn/a-12.1%-12.8%2.6%0.3%
3 Yearn/a8.4%6.2%41.0%31.8%
5 Yearn/a-0.8%-4.1%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

5%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Arcosa's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Arcosa's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Arcosa is overvalued based on earnings compared to the US Construction industry average.

Arcosa is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Arcosa is good value based on expected growth next year.


Price Based on Value of Assets

Arcosa is good value based on assets compared to the US Construction industry average.


Next Steps

Future Growth

How is Arcosa expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Arcosa's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Arcosa's earnings are expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).

Arcosa's revenue growth is positive but not above the United States of America market average.

Arcosa's earnings growth is expected to exceed the United States of America market average.

Arcosa's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Arcosa will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Arcosa performed over the past 5 years?

-18.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Arcosa's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Arcosa's 1-year earnings growth exceeds its 5-year average (0.6% vs -18.2%)

Arcosa's earnings growth has not exceeded the US Construction industry average in the past year (0.6% vs 2.6%).


Return on Equity

Arcosa has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Arcosa used its assets less efficiently than the US Construction industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Arcosa improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Arcosa's financial position?


Financial Position Analysis

Arcosa is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Arcosa's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Arcosa's level of debt (6%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Arcosa's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (147.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 41.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6x debt.


Next Steps

Dividend

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

0.85%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Arcosa's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Arcosa's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Arcosa is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Arcosa is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Arcosa's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Antonio Carrillo (53yo)

0.9yrs

Tenure

US$8,776,865

Compensation

Mr. Antonio Carrillo serves as Non Independent Director ,President and Chief Executive Officer at Arcosa, Inc. since September 2018. Mr. Carrillo served as the Chief Executive Officer of Mexichem S.A.B. de ...


CEO Compensation Analysis

Antonio's remuneration is higher than average for companies of similar size in United States of America.

Antonio's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

1.6yrs

Average Tenure

51yo

Average Age

The average tenure for the Arcosa management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.9yrs

Average Tenure

67yo

Average Age

The average tenure for the Arcosa board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$16,364,01007 Aug 19
ValueAct Capital Management L.P.
EntityCompany
Shares440,963
Max PriceUS$38.09
SellUS$11,589,21006 Aug 19
ValueAct Capital Management L.P.
EntityCompany
Shares327,000
Max PriceUS$35.72
SellUS$54,045,00014 Jun 19
ValueAct Capital Management L.P.
EntityCompany
Shares1,500,000
Max PriceUS$36.03
SellUS$46,062,90014 Mar 19
ValueAct Capital Management L.P.
EntityCompany
Shares1,395,000
Max PriceUS$33.02
BuyUS$99,81730 Nov 18
Scott Beasley
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,570
Max PriceUS$27.96
BuyUS$291,00026 Nov 18
Antonio Carrillo
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$29.10

Ownership Breakdown


Management Team

  • Gail Peck (51yo)

    Senior VP of Finance & Treasurer

    • Tenure: 0.0yrs
  • Kathryn Collins (55yo)

    Chief Human Resources Officer

    • Tenure: 1.6yrs
  • Jess Collins (53yo)

    President of Transportation Products

    • Tenure: 1.6yrs
    • Compensation: US$802.79k
  • Mary Henderson (60yo)

    Chief Accounting Officer

    • Tenure: 1.6yrs
  • Kerry Cole (51yo)

    President of Energy Equipment

    • Tenure: 1.6yrs
    • Compensation: US$1.19m
  • Antonio Carrillo (53yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$8.78m
  • Bryan Stevenson (46yo)

    Chief Legal Officer

    • Tenure: 1.6yrs
  • Scott Beasley (38yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: US$855.93k
  • Reid Essl (37yo)

    President of Construction Products

    • Tenure: 0.0yrs
    • Compensation: US$800.38k
  • Yuki Whitmire

    Associate General Counsel & Corporate Secretary

    • Tenure: 0.0yrs

Board Members

  • Rhys Best (73yo)

    Non-Exeutive Chairman

    • Tenure: 0.8yrs
    • Compensation: US$43.33k
  • David Biegler (73yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$48.59k
  • Douglas Rock (72yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$25.00k
  • Joe Alvarado (67yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$89.68k
  • Ron Gafford (69yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$29.17k
  • John Lindsay (58yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$86.68k
  • Melanie Trent (54yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$91.68k
  • Jay Craig (59yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$80.68k
  • Antonio Carrillo (53yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$8.78m

Company Information

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


Key Information

  • Name: Arcosa, Inc.
  • Ticker: ACA
  • Exchange: NYSE
  • Founded:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$1.571b
  • Shares outstanding: 48.39m
  • 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
EOBBST (Boerse-Stuttgart)YesCommon StockDEEUROct 2018
EOBDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2018

Biography

Arcosa, Inc. manufactures and sells infrastructure-related products and services for the construction, energy, and transportation markets. It operates through three segments: Construction Products Group, E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:49
End of Day Share Price2019/08/19 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.