company background image
ARC

ARC Document Solutions NYSE:ARC Stock Report

Last Price

US$2.26

Market Cap

US$97.2m

7D

-11.7%

1Y

-24.2%

Updated

30 Sep, 2022

Data

Company Financials
ARC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

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

Summary of all time highs, changes and price drops for ARC Document Solutions
Historical stock prices
Current Share PriceUS$2.26
52 Week HighUS$4.18
52 Week LowUS$2.22
Beta1.25
1 Month Change-23.39%
3 Month Change-14.07%
1 Year Change-24.16%
3 Year Change60.28%
5 Year Change-43.92%
Change since IPO-83.56%

Recent News & Updates

Jul 27

ARC Document Solutions goes ex-dividend tomorrow

ARC Document Solutions (NYSE:ARC) had declared $0.05/share quarterly dividend, in line with previous. Payable Aug. 31; for shareholders of record July 29; ex-div July 28. See ARC Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

ARCUS Commercial ServicesUS Market
7D-11.7%-1.9%-3.1%
1Y-24.2%-7.6%-21.5%

Return vs Industry: ARC underperformed the US Commercial Services industry which returned -7.6% over the past year.

Return vs Market: ARC underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is ARC's price volatile compared to industry and market?
ARC volatility
ARC Average Weekly Movement5.1%
Commercial Services Industry Average Movement6.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: ARC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ARC's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19881,700Suri Suriyakumarhttps://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

How do ARC Document Solutions's earnings and revenue compare to its market cap?
ARC fundamental statistics
Market CapUS$97.18m
Earnings (TTM)US$11.01m
Revenue (TTM)US$285.73m

8.8x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARC income statement (TTM)
RevenueUS$285.73m
Cost of RevenueUS$191.67m
Gross ProfitUS$94.06m
Other ExpensesUS$83.04m
EarningsUS$11.01m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.26
Gross Margin32.92%
Net Profit Margin3.85%
Debt/Equity Ratio28.3%

How did ARC perform over the long term?

See historical performance and comparison

Dividends

8.8%

Current Dividend Yield

65%

Payout Ratio

Does ARC pay a reliable dividends?

See ARC dividend history and benchmarks
When do you need to buy ARC by to receive an upcoming dividend?
ARC Document Solutions dividend dates
Ex Dividend DateOct 28 2022
Dividend Pay DateNov 30 2022
Days until Ex dividend27 days
Days until Dividend pay date60 days

Does ARC pay a reliable dividends?

See ARC dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is ARC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation 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

  • Analyst Forecast

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.

ARC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA4.1x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does ARC's PE Ratio compare to its peers?

ARC PE Ratio vs Peers
The above table shows the PE ratio for ARC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.7x
ACU Acme United
10.2xn/aUS$81.1m
CIX CompX International
10.8xn/aUS$199.9m
NL NL Industries
5.1xn/aUS$377.3m
TILE Interface
8.5x16.1%US$528.3m
ARC ARC Document Solutions
8.8xn/aUS$97.2m

Price-To-Earnings vs Peers: ARC is expensive based on its Price-To-Earnings Ratio (8.8x) compared to the peer average (8.7x).


Price to Earnings Ratio vs Industry

How does ARC's PE Ratio compare vs other companies in the US Commercial Services Industry?

Price-To-Earnings vs Industry: ARC is good value based on its Price-To-Earnings Ratio (8.8x) compared to the US Commercial Services industry average (15.7x)


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.

ARC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.8x
Fair PE Ration/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 ($2.26) is trading below our estimate of fair value ($4.29)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

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

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.7%

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

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


47.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARC has high quality earnings.

Growing Profit Margin: ARC's current net profit margins (3.9%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: ARC's earnings have grown significantly by 47.3% per year over the past 5 years.

Accelerating Growth: ARC's earnings growth over the past year (48.7%) exceeds its 5-year average (47.3% per year).

Earnings vs Industry: ARC earnings growth over the past year (48.7%) exceeded the Commercial Services industry 23.6%.


Return on Equity

High ROE: ARC's Return on Equity (7%) is considered low.


Discover strong past performing companies

Financial Health

How is ARC Document Solutions's financial position?

Financial Health Score

6/6

Financial 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 ($106.8M) exceed its short term liabilities ($72.6M).

Long Term Liabilities: ARC's short term assets ($106.8M) exceed its long term liabilities ($84.8M).


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 92.1% to 28.3% over the past 5 years.

Debt Coverage: ARC's debt is well covered by operating cash flow (69.5%).

Interest Coverage: ARC's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


8.85%

Current Dividend Yield

Upcoming Dividend Payment

TodayOct 01 2022Ex Dividend DateOct 28 2022Dividend Pay DateNov 30 202233 days from Ex DividendBuy in the next 27 days to receive the upcoming dividend

Dividend Yield vs Market

ARC Document Solutions Dividend Yield vs Market
How does ARC Document Solutions dividend yield compare to the market?
SegmentDividend Yield
Company (ARC Document Solutions)8.8%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Commercial Services)1.4%
Analyst forecast in 3 Years (ARC Document Solutions)n/a

Notable Dividend: ARC's dividend (8.85%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: ARC's dividend (8.85%) is in the top 25% of dividend payers in the US market (4.7%)


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 (65%), ARC's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.4%), 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?

11.5yrs

Average management tenure


CEO

Suri Suriyakumar (69 yo)

17.92yrs

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 and served as its President since 1991 until June 24, 2022 and has...


CEO Compensation Analysis

Suri Suriyakumar's Compensation vs ARC Document Solutions Earnings
How has Suri Suriyakumar's remuneration changed compared to ARC Document Solutions's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$11m

Mar 31 2022n/an/a

US$10m

Dec 31 2021US$2mUS$800k

US$9m

Sep 30 2021n/an/a

US$8m

Jun 30 2021n/an/a

US$7m

Mar 31 2021n/an/a

US$6m

Dec 31 2020US$1mUS$800k

US$6m

Sep 30 2020n/an/a

US$6m

Jun 30 2020n/an/a

US$4m

Mar 31 2020n/an/a

US$3m

Dec 31 2019US$2mUS$800k

US$3m

Sep 30 2019n/an/a

US$4m

Jun 30 2019n/an/a

US$5m

Mar 31 2019n/an/a

US$9m

Dec 31 2018US$2mUS$823k

US$9m

Sep 30 2018n/an/a

-US$5m

Jun 30 2018n/an/a

-US$22m

Mar 31 2018n/an/a

-US$23m

Dec 31 2017US$1mUS$950k

-US$22m

Sep 30 2017n/an/a

-US$7m

Jun 30 2017n/an/a

US$11m

Mar 31 2017n/an/a

-US$49m

Dec 31 2016US$975kUS$950k

-US$48m

Sep 30 2016n/an/a

-US$47m

Jun 30 2016n/an/a

US$30m

Mar 31 2016n/an/a

US$95m

Dec 31 2015US$975kUS$950k

US$97m

Compensation vs Market: Suri's total compensation ($USD2.06M) is above average for companies of similar size in the US market ($USD772.00K).

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 (11.5 years average tenure).


Board Members

Experienced Board: ARC's board of directors are considered experienced (4.4 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

NYSE:ARC Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
12 Aug 22BuyUS$22,409Bradford BrooksIndividual7,248US$3.09
11 Aug 22BuyUS$19,927Bradford BrooksIndividual6,752US$2.96
09 Aug 22BuyUS$11,604Bradford BrooksIndividual4,000US$2.94
10 Dec 21BuyUS$40,825Mark MealyIndividual13,000US$3.14
02 Dec 21SellUS$147,064Rahul RoyIndividual54,456US$2.70
15 Nov 21BuyUS$61,537Mark MealyIndividual20,000US$3.12

Ownership Breakdown

What is the ownership structure of ARC?
Owner TypeNumber of SharesOwnership Percentage
Hedge Funds3,198,6777.4%
Individual Insiders6,537,87415.2%
General Public14,767,66934.3%
Institutions18,494,04843.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 60.14% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.16%
Kumarakulasingam Suriyakumar
4,368,436$9.9m0%no data
7.44%
Renaissance Technologies LLC
3,198,677$7.2m-5.76%0.01%
4.49%
Pacific Ridge Capital Partners, LLC
1,930,170$4.4m-8.85%1.17%
3.77%
The Vanguard Group, Inc.
1,622,452$3.7m0.41%no data
3.37%
Acadian Asset Management LLC
1,449,258$3.3m15.09%0.01%
3.31%
BlackRock, Inc.
1,423,341$3.2m-0.28%no data
2.72%
Bridgeway Capital Management, LLC
1,170,053$2.6m15.16%0.07%
2.43%
LSV Asset Management
1,046,920$2.4m-0.99%0.01%
2.31%
Victory Capital Management Inc.
994,019$2.2m9.86%no data
2.27%
JB Capital Partners
974,700$2.2m0%0.67%
1.87%
North Star Investment Management Corporation
805,428$1.8m0%0.19%
1.7%
Dilantha Wijesuriya
732,306$1.7m-3.05%no data
1.69%
Verdad Advisers, L.P.
725,000$1.6m-5.03%1.74%
1.63%
AMH Equity, Ltd.
700,119$1.6m0%3.86%
1.51%
Dimensional Fund Advisors LP
647,221$1.5m38.26%no data
1.38%
Driehaus Capital Management LLC
593,120$1.3m0%0.02%
1.28%
JBF Capital, Inc.
550,000$1.2m0%0.33%
1.07%
Hillsdale Investment Management Inc.
459,087$1.0m1161.23%0.08%
1.01%
Jorge Avalos
435,602$984.5k-5.03%no data
0.93%
Mirador Capital Partners, LP
398,804$901.3k-1.72%0.23%
0.89%
Rahul Roy
384,100$868.1k-5.66%no data
0.84%
Aristides Capital, LLC
362,450$819.1k0%0.72%
0.78%
Mark Mealy
335,653$758.6k4.91%no data
0.68%
Geode Capital Management, LLC
293,308$662.9k2.31%no data
0.61%
Millennium Management LLC
260,471$588.7k302.62%no data

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$97.176m
  • Shares outstanding: 43.00m
  • 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

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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.