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. More Details
High growth potential with adequate balance sheet.
Share Price & News
How has Arco Platform's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ARCE has not had significant price volatility in the past 3 months.
7 Day Return
US Consumer Services
1 Year Return
US Consumer Services
Return vs Industry: ARCE underperformed the US Consumer Services industry which returned 40.8% over the past year.
Return vs Market: ARCE underperformed the US Market which returned 10.9% over the past year.
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
1 month ago | Simply Wall StArco Platform (NASDAQ:ARCE) Has A Pretty Healthy Balance Sheet
3 months ago | Simply Wall StArco Platform Limited Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models
4 months ago | Simply Wall StArco Platform (NASDAQ:ARCE) Shareholders Have Enjoyed A 31% Share Price Gain
Is Arco Platform undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: ARCE ($39.88) is trading above our estimate of fair value ($9.46)
Significantly Below Fair Value: ARCE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ARCE is unprofitable, so we can't compare its PE Ratio to the US Consumer Services industry average.
PE vs Market: ARCE is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ARCE's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ARCE is overvalued based on its PB Ratio (7.5x) compared to the US Consumer Services industry average (1.9x).
How is Arco Platform forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARCE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: ARCE is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ARCE's is expected to become profitable in the next 3 years.
Revenue vs Market: ARCE's revenue (22.6% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: ARCE's revenue (22.6% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARCE's Return on Equity is forecast to be low in 3 years time (19.9%).
How has Arco Platform performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARCE is currently unprofitable.
Growing Profit Margin: ARCE is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ARCE is unprofitable, and losses have increased over the past 5 years at a rate of 59.7% per year.
Accelerating Growth: Unable to compare ARCE's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ARCE is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (8.1%).
Return on Equity
High ROE: ARCE has a negative Return on Equity (-2.81%), as it is currently unprofitable.
How is Arco Platform's financial position?
Financial Position Analysis
Short Term Liabilities: ARCE's short term assets (R$1.3B) exceed its short term liabilities (R$871.4M).
Long Term Liabilities: ARCE's short term assets (R$1.3B) exceed its long term liabilities (R$966.6M).
Debt to Equity History and Analysis
Debt Level: ARCE's debt to equity ratio (18.6%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if ARCE's debt to equity ratio has reduced over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: ARCE has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if ARCE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
What is Arco Platform current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ARCE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ARCE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ARCE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ARCE's dividend payments have been increasing.
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: No need to calculate the sustainability of ARCE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Ari De Sá Cavalcante Neto (40 yo)
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 ...
|Founder||2.58yrs||no data||14.98% |
|CFO, VP of Business Development & Director||0.083yr||no data||no data|
|Independent Director||0.083yr||no data||no data|
|Independent Director||2.08yrs||no data||no data|
|Independent Director||1.17yrs||no data||no data|
|Chairman of the Board||2.58yrs||no data||33.02% |
|Independent Director||1.08yrs||no data||no data|
Experienced Board: ARCE's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.9%.
Arco Platform Limited's company bio, employee growth, exchange listings and data sources
- Name: Arco Platform Limited
- Ticker: ARCE
- Exchange: NasdaqGS
- Founded: 2004
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: US$2.305b
- Shares outstanding: 57.44m
- Website: https://www.arcoeducacao.com.br
Number of Employees
- Arco Platform Limited
- Rua Augusta 2840
- Suite 91
- São Paulo
- São Paulo
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ARCE||NasdaqGS (Nasdaq Global Select)||Yes||Class A Common Shares||US||USD||Sep 2018|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/26 06:31|
|End of Day Share Price||2020/09/25 00:00|
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.