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Fundamental analysis: Arcosa, Inc. (ACA)

Awarener score: 6.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Excellent) and growth (Average), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.5

  • Business has been growing at a low pace. It's been similar to peer companies.
  • Arcosa, Inc. business stability could not be estimated, due to insufficient input data. It looks we cannot compare it to rivals.

Margins score: 5.8

  • ACA profit margins -on goods and services sold- are usually meagre. They stand mediocre against rival companies.
  • Business profit on sales tends to be good. It's below average when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still somewhat worse than similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain almost average when measured against rivals.
  • Total net profit tends to be sufficient when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 6.0

  • Arcosa, Inc. profit -on goods and services sold- has been growing at a normal pace. It's been rather normal in relation to competitors.
  • In recent years, earnings -on operations- have been growing at a normal step, which has been slightly better than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares almost average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a good tempo. It turns to be in a weak position compared to similar stocks.
  • In past years, profits -before income taxes- grew at a normal speed. It was somewhat worse than rivals.
  • In the previous years, growth on total net profit has been low, and weak when measured against peer companies.
  • Earnings per share have grown at a low rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 6.0

  • ACA had to pay sparse income taxes in relation to profits made in the past years. It's been slightly worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.2

  • Arcosa, Inc. usually gets good returns on the resources it controls. It proves almost average when measured against peer firms.
  • The company normally gets very good proceeds -on the resources directly invested in the business-. They remain close to average when compared to similar companies.
  • There's usually some profitability -in relation to owned resources-. It ranks below average when measured against competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 6.8

  • ACA usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands similar to rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is similar to industry peers.
  • In the past twelve months it paid very little dividends, considering the current stock price. It came worse than most competitors.
  • Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved excellent in relation to similar firms.
  • Dividend payments usually represent a slight portion of genuine funds generation and are most likely safe. Sustainability looks well ranked against comparable companies.
  • The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in good shape compared to rivals.
  • The company uses a slight portion of genuine fund generation to reward investors. The company is usually improving its financial position, and could most likely increase stockholder rewards if it wished to do so. It still looks encouraging in relation to competitors.

Balance Sheet score: 4.9

  • Arcosa, Inc. has not disclosed intangibles assets, so we could not reach a meaningful conclusion on this metric. It happens to be a not known variable when measured with peer companies.
  • The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be rather normal in relation to similar firms.
  • Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains somewhat better than rival firms.
  • Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks almost average when measured against rivals.
  • For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's rather normal in relation to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is somewhat worse than similar enterprises.
  • Usually, sales are on a two-months credit. It still ranks below average when measured against peers.
  • Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as in a weak position compared to competitors.
  • On average, it takes higher than four months from the purchase to charging customers. It happens to be mediocre against peers.
  • On average pays suppliers after a month and a half from the purchase. It ranks below average when measured against industry peers.
  • The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's in a weak position compared to similar companies.
  • Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat worse than rival firms.
  • Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
  • Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
  • Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 5.2

  • Arcosa, Inc. looks very expensive in relation to profits and financial position. It happens to be weak when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands slightly worse than similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still almost average when measured against industry firms.
  • In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up lacking compared to peer ventures.
  • The company is somewhat indebted, loan repayment needs to be taken into account. It looks slightly better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks weak when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
  • We have not enough information on the relation between current stock price and accounting book value. The company remains a mystery against peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be similar to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.2


ACA logos

Company at a glance: Arcosa, Inc. (ACA)

Sector, industry: Industrials, Infrastructure Operations

Market Cap: 3.03 billions

Revenues TTM: 2.26 billions

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, energy, and transportation markets in North America. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and trench shields and shoring products for residential and non-residential construction, agriculture, specialty building products, as well as for infrastructure related projects. The Engineered Structures segment provides utility structures, wind towers, traffic and lighting structures, telecommunication structures, storage and distribution tanks for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets, as well as for gas and liquids storage and transportation for residential, commercial, energy, agriculture, and industrial markets. The Transportation Products segment offers inland barges; fiberglass barge covers, winches, and other components; cast components for industrial and mining sectors; and axles, circular forgings, coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.

Awarener score: 6.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Excellent) and growth (Average), and the company's inclination to return cash to the stockholders (Average).