| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 4/6 |
ARC Stock Overview
ARC Document Solutions, Inc., a digital printing company, provides digital printing and document-related services in the United States.
ARC Document Solutions Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$2.67 |
| 52 Week High | US$4.18 |
| 52 Week Low | US$1.96 |
| Beta | 1.29 |
| 1 Month Change | -10.40% |
| 3 Month Change | -30.65% |
| 1 Year Change | 23.61% |
| 3 Year Change | 30.88% |
| 5 Year Change | -35.82% |
| Change since IPO | -80.58% |
Recent News & Updates
ARC Document Solutions (NYSE:ARC) Has Some Difficulty Using Its Capital Effectively
If you're looking at a mature business that's past the growth phase, what are some of the underlying trends that pop...
ARC Document Solutions: A Great Value Play For Those Who Don't Mind The Risk
ARC Document Solutions has really struggled over the past few years, including in the years leading up to the pandemic. Fortunately, for investors, we are starting to see a turnaround, but it is too early in the game to know if the picture is sustaining. Given certain catalysts and how cheap shares are, however, it does make for a good value play for investors who don't mind some risk.
Shareholder Returns
| ARC | US Commercial Services | US Market | |
|---|---|---|---|
| 7D | 1.1% | 7.2% | 6.6% |
| 1Y | 23.6% | -7.5% | -18.4% |
Return vs Industry: ARC exceeded the US Commercial Services industry which returned -7.6% over the past year.
Return vs Market: ARC exceeded the US Market which returned -18.5% over the past year.
Price Volatility
| ARC volatility | |
|---|---|
| ARC Average Weekly Movement | 7.1% |
| Commercial Services Industry Average Movement | 7.2% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.6% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: ARC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: ARC's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1988 | 1,700 | Suri Suriyakumar | https://www.e-arc.com |
ARC Document Solutions, Inc., a digital printing company, provides digital printing and document-related services in the United States. It provides managed print services, that places, manages, and optimizes print and imaging equipment in customers' offices, job sites, and other facilities; and cloud-based document management software and other digital hosting services. The company also provides professional services and software services to re-produce and distribute large-format and small-format documents, and specialized graphic color printing.
ARC Document Solutions Fundamentals Summary
| ARC fundamental statistics | |
|---|---|
| Market Cap | US$115.54m |
| Earnings (TTM) | US$10.33m |
| Revenue (TTM) | US$279.97m |
11.2x
P/E Ratio0.4x
P/S RatioIs ARC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ARC income statement (TTM) | |
|---|---|
| Revenue | US$279.97m |
| Cost of Revenue | US$188.65m |
| Gross Profit | US$91.31m |
| Other Expenses | US$80.99m |
| Earnings | US$10.33m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.24 |
| Gross Margin | 32.62% |
| Net Profit Margin | 3.69% |
| Debt/Equity Ratio | 28.3% |
How did ARC perform over the long term?
See historical performance and comparisonDividends
7.5%
Current Dividend Yield57%
Payout RatioDoes ARC pay a reliable dividends?
See ARC dividend history and benchmarks| ARC Document Solutions dividend dates | |
|---|---|
| Ex Dividend Date | Jul 28 2022 |
| Dividend Pay Date | Aug 31 2022 |
| Days until Ex dividend | 32 days |
| Days until Dividend pay date | 66 days |
Does ARC pay a reliable dividends?
See ARC dividend history and benchmarksValuation
Is ARC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ARC?
Other financial metrics that can be useful for relative valuation.
| What is ARC's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$115.54m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.6x |
| Enterprise Value/EBITDA | 4.6x |
| PEG Ratio | n/a |
Price to Earnings Ratio vs Peers
How does ARC's PE Ratio compare to its peers?
| ARC PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 9.9x |
Price-To-Earnings vs Peers: ARC is expensive based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (9.9x).
Price to Earnings Ratio vs Industry
How does ARC's PE Ratio compare vs other companies in the U.S. Commercial Services Industry?
Price-To-Earnings vs Industry: ARC is good value based on its Price-To-Earnings Ratio (11.2x) compared to the US Commercial Services industry average (20.9x)
Price to Earnings Ratio vs Fair Ratio
What is ARC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 11.2x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ARC's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of ARC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ARC ($2.67) is trading below our estimate of fair value ($6.92)
Significantly Below Fair Value: ARC is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ARC's PEG Ratio to determine if it is good value.
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Future Growth
How is ARC Document Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
16.0%
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.
Discover growth companies
- 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.
Past Performance
How has ARC Document Solutions performed over the past 5 years?
Past Performance Score
5/6Past Performance Score 5/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
58.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARC has high quality earnings.
Growing Profit Margin: ARC's current net profit margins (3.7%) are higher than last year (2.4%).
Past Earnings Growth Analysis
Earnings Trend: ARC has become profitable over the past 5 years, growing earnings by 58.6% per year.
Accelerating Growth: ARC's earnings growth over the past year (64.1%) exceeds its 5-year average (58.6% per year).
Earnings vs Industry: ARC earnings growth over the past year (64.1%) exceeded the Commercial Services industry 25.7%.
Return on Equity
High ROE: ARC's Return on Equity (6.3%) is considered low.
Discover strong past performing companies
Financial Health
How is ARC Document Solutions's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: ARC's short term assets ($108.2M) exceed its short term liabilities ($70.6M).
Long Term Liabilities: ARC's short term assets ($108.2M) exceed its long term liabilities ($85.4M).
Debt to Equity History and Analysis
Debt Level: ARC has more cash than its total debt.
Reducing Debt: ARC's debt to equity ratio has reduced from 96.3% to 28.3% over the past 5 years.
Debt Coverage: ARC's debt is well covered by operating cash flow (74.1%).
Interest Coverage: ARC's interest payments on its debt are well covered by EBIT (8.4x coverage).
Balance Sheet
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Dividend
What is ARC Document Solutions's current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
7.49%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ARC's dividend (7.49%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: ARC's dividend (7.49%) is in the top 25% of dividend payers in the US market (4.24%)
Stability and Growth of Payments
Stable Dividend: ARC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: ARC's dividend payments have increased, but the company has only paid a dividend for 3 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (57.1%), ARC's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (29.7%), ARC's dividend payments are well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
11.3yrs
Average management tenure
CEO
Suri Suriyakumar (68 yo)
31.42yrs
Tenure
US$2,060,779
Compensation
Mr. Kumarakulasingam Suriyakumar, also known as Suri, has been Chief Executive Officer of ARC Document Solutions, Inc. since June 1, 2007, President since 1991 and as its Chairman of the Board since July 2...
CEO Compensation Analysis
Compensation vs Market: Suri's total compensation ($USD2.06M) is above average for companies of similar size in the US market ($USD752.25K).
Compensation vs Earnings: Suri's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: ARC's management team is seasoned and experienced (11.3 years average tenure).
Board Members
Experienced Board: ARC's board of directors are considered experienced (4.2 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
ARC Document Solutions, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: ARC Document Solutions, Inc.
- Ticker: ARC
- Exchange: NYSE
- Founded: 1988
- Industry: Office Services and Supplies
- Sector: Commercial Services
- Implied Market Cap: US$115.543m
- Shares outstanding: 43.27m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/26 00:00 |
| End of Day Share Price | 2022/06/24 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.