ARC Document Solutions
Market Cap
US$56.9m
Last Updated
2020/02/17 00:12 UTC
Data Sources
Company Financials
Executive Summary
ARC Document Solutions, Inc., a reprographics company, provides document solutions worldwide.
Rewards
Risk Analysis
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
-0.8%
ARC
2.2%
US Commercial Services
1.8%
US Market
1 Year Return
-50.8%
ARC
22.4%
US Commercial Services
20.1%
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
| ARC | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 2.2% | 1.8% |
| 30 Day | -5.3% | 3.7% | 1.4% |
| 90 Day | 2.5% | 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
1 day ago | Simply Wall St
Is ARC Document Solutions, Inc.'s (NYSE:ARC) CEO Pay Fair?2 weeks ago | Simply Wall St
Did You Manage To Avoid ARC Document Solutions's (NYSE:ARC) Devastating 86% Share Price Drop?1 month ago | Simply Wall St
Do Insiders Own Shares In ARC Document Solutions, Inc. (NYSE:ARC)?Valuation
Is ARC Document Solutions undervalued compared to its fair value and its price relative to the market?
>50%
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?
16.1%
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
- Examine whether ARC Document Solutions is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- ARC Document Solutions competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Commercial Services industry.
Past Performance
How has ARC Document Solutions performed over the past 5 years?
-29.1%
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
Dividend
What is ARC Document Solutions's current dividend yield, its reliability and sustainability?
3.23%
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
Management
How experienced are the management team and are they aligned to shareholders interests?
9.0yrs
Average management tenure
CEO
Suri Kumarakulasingam (66yo)
12.7yrs
Tenure
US$2,364,213
Compensation
Mr. Kumarakulasingam Suriyakumar, also known as Suri, has been Chief Executive Officer of American Reprographics Company, L.L.C. since June 1, 2007 and its President since 1991. Mr. Suriyakumar served as a ...
CEO Compensation Analysis
Compensation vs Market: Suri's total compensation ($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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 12.7yrs | US$2.36m | 9.73% $5.5m | |
| Chief Financial Officer | 5yrs | US$871.96k | 0.61% $347.2k | |
| Chief Operating officer | 9yrs | US$1.31m | 1.26% $715.0k | |
| Chief Technology Officer | 19.4yrs | US$1.53m | 0.66% $378.2k | |
| Senior Vice President of Corporate Administration | 0yrs | no data | no data | |
| Vice President of Corporate Communications & Investor Relations | 0yrs | no data | no data | |
| Corporate Counsel & Corporate Secretary | 1.5yrs | no data | no data | |
| Senior Vice President of Mergers & Acquisitions | 0yrs | no data | no data | |
| Senior Vice President of Purchasing | 0yrs | no data | no data | |
| Executive Vice President of Global Services | 0yrs | no data | no data |
9.0yrs
Average Tenure
58yo
Average Age
Experienced Management: ARC's management team is seasoned and experienced (9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 12.7yrs | US$2.36m | 9.73% $5.5m | |
| Independent Director | 15.3yrs | US$110.00k | 0.45% $256.3k | |
| Independent Director | 14.9yrs | US$115.00k | 0.45% $256.2k | |
| Independent Director | 3.8yrs | US$110.00k | 0.18% $104.5k | |
| Lead Independent Director | 12.6yrs | US$115.00k | 0.22% $124.8k | |
| Independent Director | 1.8yrs | US$101.25k | 0.12% $66.6k | |
| Independent Director | 1.2yrs | US$42.50k | 0.085% $48.2k |
11.6yrs
Average Tenure
61yo
Average Age
Experienced Board: ARC's board of directors are seasoned and experienced ( 11.6 years average tenure).
Ownership
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
Location
- ARC Document Solutions, Inc.
- 12657 Alcosta Boulevard
- Suite 200
- San Ramon
- California
- 94583
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Feb 2005 |
| BK1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 2005 |
Biography
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:12 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.