Stock Analysis Report

Executive Summary

ARC Document Solutions, Inc., a reprographics company, provides document solutions worldwide.


Trading at 86.9% below its fair value

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Does not have a meaningful market cap ($57M)

Snowflake Analysis

Undervalued with acceptable track record.

Similar Companies

Share Price & News

How has ARC Document Solutions's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: ARC has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




US Commercial Services


US Market

1 Year Return




US Commercial Services


US Market

Return vs Industry: ARC underperformed the US Commercial Services industry which returned 22.4% over the past year.

Return vs Market: ARC underperformed the US Market which returned 20.1% over the past year.

Shareholder returns

7 Day-0.8%2.2%1.8%
30 Day-5.3%3.7%1.4%
90 Day2.5%9.2%8.8%
1 Year-50.4%-50.8%26.9%22.4%22.7%20.1%
3 Year-73.6%-73.8%67.4%56.2%50.1%40.4%
5 Year-86.7%-86.8%106.4%84.4%72.9%53.9%

Price Volatility Vs. Market

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

Simply Wall St News


Is ARC Document Solutions undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ARC ($1.24) is trading below our estimate of fair value ($9.49)

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

Price To Earnings Ratio

PE vs Industry: ARC is good value based on its PE Ratio (14.7x) compared to the Commercial Services industry average (26.4x).

PE vs Market: ARC is good value based on its PE Ratio (14.7x) compared to the US market (18.4x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: ARC is good value based on its PB Ratio (0.4x) compared to the US Commercial Services industry average (1.8x).

Next Steps

Future Growth

How is ARC Document Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?


Forecasted Commercial Services 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 ARC Document Solutions 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.

Next Steps

Past Performance

How has ARC Document Solutions performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARC has high quality earnings.

Growing Profit Margin: ARC became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: ARC has become profitable over the past 5 years, growing earnings by -29.1% per year.

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

Earnings vs Industry: ARC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (0.2%).

Return on Equity

High ROE: ARC's Return on Equity (2.5%) is considered low.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is ARC Document Solutions's financial position?

Financial Position Analysis

Short Term Liabilities: ARC's short term assets ($106.9M) exceed its short term liabilities ($88.9M).

Long Term Liabilities: ARC's short term assets ($106.9M) do not cover its long term liabilities ($125.9M).

Debt to Equity History and Analysis

Debt Level: ARC's debt to equity ratio (43.3%) is considered high.

Reducing Debt: ARC's debt to equity ratio has reduced from 184.5% to 43.3% over the past 5 years.

Debt Coverage: ARC's debt is well covered by operating cash flow (84.7%).

Interest Coverage: ARC's interest payments on its debt are not well covered by EBIT (2.8x coverage).

Balance Sheet

Inventory Level: ARC has a high level of physical assets or inventory.

Debt Coverage by Assets: ARC's debt is covered by short term assets (assets are 1.7x debt).

Next Steps


What is ARC Document Solutions's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: ARC's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ARC's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (3.69%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether ARC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ARC's dividend payments are increasing as they only just started paying a dividend.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are 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


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


Average management tenure


Suri Kumarakulasingam (66yo)





Mr. Kumarakulasingam Suriyakumar, also known as Suri, has been Chief Executive Officer of American Reprographics Company, L.L.C. since June 1, 2007 and its President since 1991. Mr. Suriyakumar served as a ...

CEO Compensation Analysis

Compensation vs Market: Suri's total compensation ($USD2.36M) is above average for companies of similar size in the US market ($USD521.92K).

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

Leadership Team

Suriyakumar Kumarakulasingam
Chairman12.7yrsUS$2.36m9.73% $5.5m
Jorge Avalos
Chief Financial Officer5yrsUS$871.96k0.61% $347.2k
Dilantha Wijesuriya
Chief Operating officer9yrsUS$1.31m1.26% $715.0k
Rahul Roy
Chief Technology Officer19.4yrsUS$1.53m0.66% $378.2k
Ken Gini
Senior Vice President of Corporate Administration0yrsno datano data
David Stickney
Vice President of Corporate Communications & Investor Relations0yrsno datano data
Tracey Luttrell
Corporate Counsel & Corporate Secretary1.5yrsno datano data
J. Carlson
Senior Vice President of Mergers & Acquisitions0yrsno datano data
Joe Abeyesinhe
Senior Vice President of Purchasing0yrsno datano data
Ted Buscaglia
Executive Vice President of Global Services0yrsno datano data


Average Tenure


Average Age

Experienced Management: ARC's management team is seasoned and experienced (9 years average tenure).

Board Members

Suriyakumar Kumarakulasingam
Chairman12.7yrsUS$2.36m9.73% $5.5m
Thomas Formolo
Independent Director15.3yrsUS$110.00k0.45% $256.3k
Mark Mealy
Independent Director14.9yrsUS$115.00k0.45% $256.2k
John Freeland
Independent Director3.8yrsUS$110.00k0.18% $104.5k
Dewitt McCluggage
Lead Independent Director12.6yrsUS$115.00k0.22% $124.8k
Bradford Brooks
Independent Director1.8yrsUS$101.25k0.12% $66.6k
Cheryl Cook
Independent Director1.2yrsUS$42.50k0.085% $48.2k


Average Tenure


Average Age

Experienced Board: ARC's board of directors are seasoned and experienced ( 11.6 years average tenure).


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

Insider Trading Volume

Insider Buying: ARC 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

ARC Document Solutions, Inc.'s company bio, employee growth, exchange listings and data sources

Key Information

  • Name: ARC Document Solutions, Inc.
  • Ticker: ARC
  • Exchange: NYSE
  • Founded:
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$56.900m
  • Shares outstanding: 45.89m
  • Website: https://www.e-arc.com

Number of Employees


  • ARC Document Solutions, Inc.
  • 12657 Alcosta Boulevard
  • Suite 200
  • San Ramon
  • California
  • 94583
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARCNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2005
BK1DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2005


ARC Document Solutions, Inc., a reprographics company, provides document solutions worldwide. It offers managed print services, an onsite service that places, manages, and optimizes print and imaging equipment in customers' offices, job sites, and other facilities; construction document and information management services, which consists of professional services to manage and distribute documents and information primarily related to construction projects; and archive and information management services that combines software and professional services to facilitate the capture, management, access, and retrieval of documents and information that have been produced in the past. The company also resells printing, imaging, and related equipment primarily to architectural, engineering, and construction firms, as well as provides ancillary services, such as equipment service and maintenance; and offers specialized color printing comprising color printing, finishing and assembly of graphic materials for regional and national retailers, franchises, marketing departments, theme parks, and cultural institutions. In addition, it develops and offers Web-based document management applications, such as SKYSITE, Planwell, and Abacus that facilitates project collaboration, manage print networks, track equipment fleets, create and maintain project document archives, and other document and content management tasks. Further, the company operates 178 offsite service centers that provides its customers with project-related printing of construction documents. It serves senior management teams, information technology and procurement departments, project architects, engineers, general contractors, facilities managers, and others. The company was formerly known as American Reprographics Company and changed its name to ARC Document Solutions, Inc. in 2012. ARC Document Solutions, Inc. is headquartered in San Ramon, California. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:12
End of Day Share Price2020/02/14 00:00
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.