NasdaqGS:ARCE

Stock Analysis Report

Executive Summary

Arco Platform Limited, a technology company in the education sector, provides a pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.

Risks

  • Arco Platform has significant price volatility in the past 3 months.

Share Price & News

How has Arco Platform's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

NasdaqGS:ARCE

0.6%

US Consumer Services

-1.0%

US Market


1 Year Return

n/a

NasdaqGS:ARCE

9.5%

US Consumer Services

-0.4%

US Market

No trading data on ARCE.

No trading data on ARCE.


Share holder returns

ARCEIndustryMarket
7 Day5.0%0.6%-1.0%
30 Day17.0%0.7%-3.3%
90 Day43.3%7.5%0.4%
1 Yearn/a13.4%9.5%1.8%-0.4%
3 Yearn/a113.4%101.3%39.4%30.4%
5 Yearn/a137.1%113.0%54.2%37.1%

Price Volatility Vs. Market

How volatile is Arco Platform's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Arco Platform undervalued based on future cash flows and its price relative to the stock market?

9.64x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Arco Platform's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Arco Platform's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Arco Platform is loss making, we can't compare its value to the US Consumer Services industry average.

Arco Platform is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Arco Platform, we can't assess if its growth is good value.


Price Based on Value of Assets

Arco Platform is overvalued based on assets compared to the US Consumer Services industry average.


Next Steps

Future Growth

How is Arco Platform expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

75.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Arco Platform's revenue is expected to grow significantly at over 20% yearly.

Arco Platform's earnings are expected to grow significantly at over 20% yearly.

Arco Platform's revenue growth is expected to exceed the United States of America market average.

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

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


Earnings per Share Growth Estimates


Future Return on Equity

Arco Platform is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Arco Platform performed over the past 5 years?

-63.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Arco Platform does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Arco Platform's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Arco Platform's 1-year growth to the US Consumer Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Arco Platform has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Arco Platform has efficiently used its assets last year compared to the US Consumer Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Arco Platform improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Arco Platform's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Arco Platform has no debt.

Arco Platform has not taken on any debt in the past 5 years.

Arco Platform has no debt, it does not need to be covered by operating cash flow.

Arco Platform has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Arco Platform has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Arco Platform's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Arco Platform's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Arco Platform has not reported any payouts.

Unable to verify if Arco Platform's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Arco Platform has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Arco Platform's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Ari De Sá Cavalcante Neto (39yo)

1.5yrs

Tenure

Mr. Ari De Sá Cavalcante Neto is Founder of Arco Platform Limited and serves as its Chief Executive Officer and Director since February 2018. Mr. De Sá Cavalcante Neto has been a member of the advisory com ...


Management Age and Tenure

5.4yrs

Average Tenure

32yo

Average Age

The average tenure for the Arco Platform management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

1.0yrs

Average Tenure

47yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Ari De Sá Cavalcante Neto (39yo)

    Founder

    • Tenure: 1.5yrs
  • David Dos Santos (31yo)

    CFO & VP of Business Development

    • Tenure: 5.4yrs
  • João Silva (32yo)

    Chief Operation Officer

    • Tenure: 5.6yrs
  • Vitor Hiraiwa

    Head of Investor Relations


Board Members

  • Alberto Menache (46yo)

    Independent Director

    • Tenure: 1.0yrs
  • Martin Escobari (47yo)

    Independent Director

    • Tenure: 1.0yrs
  • Edward Ruiz (69yo)

    Independent Director

    • Tenure: 0.1yrs
  • Ari De Sá Cavalcante Neto (39yo)

    Founder

    • Tenure: 1.5yrs
  • Oto De Sá Cavalcante (72yo)

    Chairman of the Board

    • Tenure: 1.5yrs

Company Information

Arco Platform Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arco Platform Limited
  • Ticker: ARCE
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: education services
  • Sector: consumer services
  • Market Cap: US$2.636b
  • Shares outstanding: 50.36m
  • Website: Click here

Number of Employees


Location

  • Arco Platform Limited
  • Rua Elvira Ferraz 250
  • Sala 716
  • Sao Paulo
  • São Paulo
  • 04552-040
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARCENasdaqGS (Nasdaq Global Select)YesClass A Common SharesUSUSDSep 2018

Biography

Arco Platform Limited, a technology company in the education sector, provides a pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. The company’ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 00:42
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
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.